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25 Feb. 2025
Insight
With European regulators intensifying their focus on greenwashing in the financial sector, in order to track and sanction reprehensible behaviour, this webinar brings together a multi-jurisdictional panel of experts from our French, German, Italian, Spanish, and UK offices. The panel covers regulatory enforcement risk by exploring whether national regulators in the different jurisdictions consider greenwashing a regulatory priority, the specific actions they may take, the regulatory tools available, and any fines, sanctions, or investigations which have occurred.
The panel then goes on to consider the risks of litigation through the courts associated with greenwashing. They cover potential remedies for investors, competitors, and other stakeholders as well as the basis on which investors can claim damages for greenwashing in the various jurisdictions, the possibility of class action lawsuits, and the types of damages that would be covered. Furthermore, the panel explores the remedies available to competitors and NGOs.
This comprehensive discussion compares and contrasts the regulatory enforcement and litigation risks associated with greenwashing in various European jurisdictions.
Our panel consists of team members from across the region: Heike Schmitz (Frankfurt), Simon Clarke (London), Martin Le Touzé (Paris), Pietro Pouché (Milan), Jaime de San Roman (Madrid), Morris Schonberg (Brussels) and Christoph Zuschlag (Frankfurt).
Watch the webinar below:
In case you missed it, there were 5 key takeaways:
- it's a myth to think that European Supervisory Authorities are not focused on greenwashing by financial institutions, with recent cases in France and Luxembourg highlighting the types of regulatory sanctions being imposed
- both the EU and UK are enhancing consumer protection regulations and whilst financial services have not been a focus for consumer protection authorities thus far, we may soon see developments in this area
- competitors may seek compensation for market share loss due to greenwashing practices, typically resulting in loss of profit claims. This emphasises the need for accurate and verifiable green claims
- individual claims are likely for less common situations, such as unfair competition or sophisticated investor claims. Class actions are suitable for collective interests and the EU Directive on representative actions provides a framework for such claims. This increases the risk of class actions against financial institutions for greenwashing
- greenwashing is a new battleground for well-recognised causes of action, with arguments likely focusing on terminology, methodology, metrics, and the adequacy of data. Statements about future targets or commitments may imply representations about the belief of the maker at the time, which could be scrutinised in litigation
Key contacts
Heike Schmitz
Partnerin, Co-Head ESG EMEA, Germany
Simon Clarke
Partner, London
Martin Le Touzé
Partner, Paris
Pietro Pouché
Partner, Milan
Jaime de San Román
Partner, Madrid
Dr Morris Schonberg
Partner, Brussels and London
Christoph Zuschlag
Senior Associate, Germany
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Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.