Environmental, social and governance (ESG) blog

The recent election of the Labour government in the UK, led by Prime Minister Keir Starmer, signifies a shift in policy on sustainability and climate action.

The ASA decision on an ad for Wessex Water is a very timely illustration of the very high standards that are currently being applied by the ASA and also the CMA in relation to green claims.

The Financial Conduct Authority (FCA) has updated its rules and guidance to address greenwashing in the advertising of financial services, effective from the 31 May 2024.

Greenwashing is a type of marketing that (intentionally or unintentionally) presents companies as more sustainable than they in fact are, in order to appeal to an increasingly eco-conscious public. 

ESG funds continue to grow in popularity – so it’s no surprise the rules are getting tighter. The new development shows that the European Securities and Markets Authority (ESMA) are keen to fight greenwashing from the outset. As part of the ongoing development surrounding investments funds with a ESG focus, ESMA announced its guidelines for the use of ESG related terms in a fund’s name.

As we commemorate Earth Day 2024, we contemplate the recent landmark ruling by the European Court of Human Rights (ECtHR). The ruling, which held that governments have a duty to mitigate against climate change and failure to do so is a breach of the European Convention on Human Rights (ECHR), serves as a poignant reminder that the consequences of climate change extend beyond mere physical effects. The impact encompasses our fundamental rights, health, well-being, and quality of life.

The EU’s long-awaited Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) finally achieved approval from the European Council on 15 March and will now be put to the European Parliament for final approval.