In the race to attract consumers who are increasingly concerned about environmental, social and governance (ESG) factors, companies are increasingly promoting green products. But as demand grows, so does the risk that organizations overreach or even knowingly use deceptive business practices. Thus, the phenomenon of “greenwashing” appears, which can take various forms – from exaggerated or inaccurate claims to those that are created intentionally to deceive or mislead the consumer. Although originally used only in the context of environmental claims, the definition of “green water” has now been extended to the broader concept of sustainable development.

Even if this phenomenon is not currently regulated as such at the European or local level, there is no doubt that it will happen in the near future. There are a number of notable legislative or administrative initiatives that are already leading the way.

So, last March, the European Commission published a draft directive amending Directives 2005/29/EC and 2011/83/EU, which aims to promote a circular, clean and green EU economy by enabling consumers to make informed purchasing decisions and, thus supporting more sustainable consumption. It also targets unscrupulous business practices that mislead consumers about green choices.

Read the rest of the article on the PwC Romania blog

The article was signed by Ana Maria Iordake, Partner at D&B David si Baias and Ekaterina Boca, ESG Manager, PwC Romania

Article supported by PwC Romania