· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Euronews or enjoy below:
🗞️ Driving the news: UK businesses are facing a significant crackdown on greenwashing, with almost half at risk of receiving substantial fines for misleading environmental claims
• The Competitions and Markets Authority (CMA) and the EU are enforcing stricter consumer protection laws, which could result in fines of up to 10% of a business's global turnover for proven greenwashing violations
🔭 The context: A recent analysis by Compare Ethics highlighted the growing challenge for businesses to navigate the rapidly evolving regulatory landscape regarding sustainability claims
• With the CMA and EU intensifying their scrutiny, companies must now ensure every sustainable claim is rigorously verified to avoid hefty penalties
🌍 Why it matters for the planet: The stricter enforcement against greenwashing aims to foster genuine sustainability efforts and discourage businesses from making unfounded environmental claims
• This shift is crucial for protecting consumer trust in sustainable products and driving real progress in environmental conservation and human rights within corporate supply chains
⏭️ What's next: As regulations continue to evolve, businesses must adapt quickly to comply with new requirements, including the Green Claims Directive and the Corporate Sustainability Due Diligence Directive (CSDDD) in the EU
• These changes demand more transparent and verifiable sustainability claims, which could significantly impact companies' operations and their approach to environmental responsibility
💬 One quote: "Right now, every environmental claim needs to be checked before it goes out the door. But the reality is, it is not," - Abbie Morris, CEO of Compare Ethics.
📈 One stat: An average business may need to invest between £500,000 and £1 million annually to manually verify all green claims, with additional costs for technology development and maintenance.
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