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Accuracy in touting ESG values is important. Various federal and state laws designed to curb "greenwashing" may limit representations a company can make to tout the environmental benefits of their operations.

The FTC, which has authority to bring enforcement actions for unfair and deceptive advertising practices, has issued Green Guides which provide general guidance on environmental marketing claims.

On March 21, 2022, the SEC proposed climate disclosure rulings for SEC filings -- meaning public companies could assume significant liabilities if they are unable to substantiate representations they make in such disclosures. 

As of December 2022, the FTC is solicting public comments

on potential updatesand changes to its Green Guides.

Click here for information

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