Greenwashing Risks in India: How Companies Can Protect Themselves from ESG and Advertising Liability
Updated: May 13
Sustainability is no longer just a branding strategy — it is now a legal, regulatory, and reputational issue.
Across industries, companies are increasingly promoting products and businesses as “eco-friendly,” “green,” “sustainable,” “carbon neutral,” or “net-zero aligned.” While environmental positioning can strengthen brand value and investor confidence, it also exposes businesses to a growing legal risk: greenwashing.
What is Greenwashing ?
Greenwashing refers to the practice of making environmental or sustainability claims that are misleading, exaggerated, vague, or unsupported by evidence.
A claim may amount to greenwashing where:
It creates a false impression of environmental benefit;
Important qualifying information is omitted;
Broad claims are made without scientific substantiation;
Sustainability language is used merely as a marketing tool without actual compliance or measurable impact.
Examples include:
“100% eco-friendly”
“Zero emissions”
“Completely sustainable”
“Plastic-free”
“Green manufacturing”
“Carbon neutral” without credible offsets or disclosures
Even well-intentioned businesses may unintentionally engage in greenwashing if their claims are not legally reviewed or backed by adequate documentation.
How Companies Can Reduce Greenwashing Risks
Conduct Legal Reviews of Sustainability Claims
Environmental claims should be reviewed not only from a marketing perspective, but also from a legal and compliance perspective.
Maintain Supporting Documentation
Businesses should maintain internal records and evidence supporting sustainability representations, including:
Certifications
Emission calculations
Audit reports
Supply chain data
Recycling or sourcing records
Ensure Consistency Across Platforms
Sustainability-related messaging across advertisements, websites, ESG reports, BRSR filings, investor presentations, and packaging should align with one another.
Use Qualified and Specific Language
Specific and evidence-based claims are generally safer than broad aspirational statements.
For example:
Prefer: “Packaging made with 70% recycled material”
Instead of: “Environmentally friendly packaging”
Review ESG and BRSR Disclosures Strategically
ESG reporting should not be treated as a purely disclosure-driven exercise. Companies should evaluate whether statements in ESG reports could create legal, governance, or reputational exposure.
Conclusion
Navigating environmental regulations is a critical aspect of modern business operations. By understanding the types of regulations, the importance of compliance, and the steps to take, businesses can not only avoid penalties but also thrive in a sustainable manner. As regulations continue to evolve, staying informed and proactive will be essential for long-term success.
Start today by assessing your current practices and committing to a sustainable future.
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