US consumer litigation over ESG claims set to rise

It isn’t only policymakers and environmental groups that are scrutinising companies’ green credentials. Law firm Clifford Change warns about a wave of ESG litigation coming from consumers.

In a recent post on its website, Clifford Chance says that, in addition to regulatory activity on greenwashing, “companies should also take note of the rise in consumer litigation regarding statements on product packaging and in advertising about environmental, social, and governance practices. US consumers, nonprofits, regulators, and plaintiffs’ lawyers are closely scrutinizing packaging and advertising claims regarding, among others, sustainable sourcing, organic ingredients, fair trade, and environmental benefits.”