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TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

A new study is calling agricultural sustainability claims into question. The agricultural industry accounts for roughly one-third of all human-caused GHG emissions globally. Meat and dairy production are known to be major contributors to global climate change. With consumer concerns on the rise, agriculture companies have looked to sustainability claims to reassure customers that their products are sustainable. However, a recent study investigated 1,233 sustainability claims from across the industry and found that shockingly few could be fully supported:

“We… examined each of these 1,233 claims using the Nemes et al. greenwashing framework and found that 98% (1,213) could be categorized as greenwashing. The common use of vague language (e.g., ‘sustainable food producer’) and limited information surrounding how emissions are being measured (e.g., ‘data-driven approach’) call into question the credibility of these claims. Rather than pursuing transformative change, many companies appear to prioritize minor efficiency gains and heavily publicize small-scale or pilot initiatives that do little to impact the broader environmental footprint of animal agriculture.”

I recently wrote about a greenwashing settlement out of New Zealand with multinational dairy producer Fonterra. In that case, Fonterra conceded to violating marketing laws by labeling their beef as “100% grass fed.” If the results of this study are correct, they are just one of many cases of rampant greenwashing in the industry. However, the greenwashing framework employed by the study is an academic standard, not a legal one. While many of these statements may not be fully supported by data, they may not rise to the level of a legally actionable offense. Even still, companies should exercise caution. If there is a widespread practice of deceptive marketing, the plaintiff’s bar won’t be far behind. It’s always best to avoid misleading statements and apply sustainable marketing best practices to avoid greenwashing.

Our members can learn more about greenwashing here.

Interested in a membership with access to the complete range of benefits and resources? Sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information.

Practical Guidance for Companies, Curated for Clarity.

 

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile