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What litigation risks for firms does the FCA’s anti-greenwashing rule and guidance create?

Extinction Rebellion activists protest in front of the ENI (National Hydrocarbons Authority) headquarters and demand that greenwashing must be stopped.
Photo: Stefano Montesi/Corbis/Getty Images

Guidance to help firms understand and comply with the new rule.

The FCA has recently published its finalised guidance on the anti-greenwashing rule, which will come into force on May 31, 2024. (See FCA confirms new UK guidance to counter greenwashing)

The anti-greenwashing rule, in the ESG Sourcebook, requires all FCA-authorized firms to ensure that any reference to the sustainability characteristics

  1. consistent