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.

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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.

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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. 

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