Asia-Pacific tightens greenwashing scrutiny as region cracks down – includes influencers
- About 140 firms in the Asia-Pacific region are being reviewed after an internet sweep found 57 per cent had made ‘concerning claims’
- Businesses using terms like ‘green’ or ‘sustainable’ must support them with evidence such as scientific reports, transparency and certification
Regulators in the Asia-Pacific region are ramping up scrutiny on companies that may be overstating their environmental credentials.
Australia is reviewing at least 140 businesses for potential greenwashing after an internet sweep found 57 per cent of firms had made “concerning claims” about their environmental and sustainability practices, its consumer watchdog said on Thursday.
That comes less than a month after South Korea’s government issued warnings to some of the nation’s biggest energy and steel companies over misleading climate claims and after Japan strengthened the rules on which funds can label themselves “ESG”.
Meanwhile India’s securities watchdog released a framework of ESG reporting requirements for listed entities in February, after disclosure rules for retail ESG funds took effect in Singapore at the start of this year.
Of the 247 businesses targeted by the Australian Competition and Consumer Commission in its sweep, the cosmetic, clothing and footwear, and food and drink sectors had the highest proportion of vague or misleading claims, the ACCC said.
The commission has a history of combating greenwashing claims, and has extended into new areas, targeting misleading endorsements by social media influencers and challenging Alphabet Inc’s Google over privacy policy.