Crisis Communications

ESG Controversies: Avoiding Greenwash Backlash

Regulators and watchdogs tightened scrutiny of environmental claims, and 2025 brought fresh twists across jurisdictions. This quiz checks how you structure claims and disclosures to avoid misleading impressions and regulatory pushback.

In the UK, which body most directly enforces rules against misleading environmental ads?

The Advertising Standards Authority (ASA).

The Serious Fraud Office (SFO).

The Prudential Regulation Authority (PRA).

The Takeover Panel.

The ASA and CAP guidance govern environmental claims in ads and have continued active enforcement in 2025.

Why did the ASA ban some 2025 ads claiming coffee pods were ‘compostable’?

Because coffee packaging is exempt from environmental ads.

They implied home compostability when only industrial facilities could compost them.

Because compostable materials were outlawed in 2025.

Because the ads failed to include carbon‑offset purchases.

Context matters: claims must reflect the actual conditions under which the product decomposes; otherwise they mislead consumers.

What was the status of the EU Green Claims Directive in June 2025?

It was replaced by the FTC Green Guides.

It applied only to micro‑enterprises in 2025.

The European Commission signaled an intention to withdraw the proposal and negotiations were effectively suspended.

It was fully in force across the EU as binding law.

Political shifts and concerns over burden paused the initiative; companies must rely on existing regimes in each market.

Which practice most reduces greenwashing risk for broad claims like ‘sustainable’ or ‘green’?

Add a leaf icon and a QR code without supporting data.

Use vague terms that are harder to disprove.

Rely on supplier assurances without documentation.

Qualify the claim to a specific, provable aspect and disclose scope and limits (ideally life‑cycle based).

Regulators expect specificity and evidence, or else claims can mislead by implying overall environmental superiority.

Which statement best reflects 2025 developments to the EU CSRD framework?

The Commission proposed to streamline and defer parts of reporting, but core obligations for in‑scope companies remain.

CSRD applies only to Scope 1 emissions in 2025.

CSRD was repealed entirely in early 2025.

CSRD is a voluntary code with no enforcement route.

Omnibus proposals sought to reduce burden, not eliminate CSRD; companies still face structured sustainability disclosures.

By mid‑2025, what was the global direction of travel on ISSB climate disclosure standards?

ISSB applies only to private companies.

Multiple jurisdictions moved to adopt or align with ISSB, with several targeting full adoption.

Only one country had adopted ISSB by 2025.

ISSB was abandoned globally in favor of national standards only.

IFRS Foundation profiles and market analysis show growing, though uneven, adoption and alignment with ISSB standards.

In the U.S., what was the FTC Green Guides status in early‑to‑mid 2025?

States were barred from acting on green claims until the update.

The FTC banned all use of the term ‘recyclable’.

Updates were still pending; the FTC had not issued a finalized revision.

The Green Guides were repealed in 2025.

Trade press and legal updates reported continued delay of the federal update, with states and regulators acting under existing rules.

An ad highlights one eco‑project but omits a company’s wider environmental impacts. What has the ASA indicated in 2025 rulings?

Omissions are fine if a small asterisk links to a blog.

Only quantitative claims need substantiation; stories are exempt.

Specific success stories are always acceptable without context.

Omissions can mislead; context about the wider footprint may be required to avoid an overall impression of greenness.

2025 cases reinforced that selective messaging without context can still mislead on overall impact.

Which internal control best supports defensible environmental claims in 2025 campaigns?

A pre‑clear checklist tying each claim to evidence, scope, and jurisdictional review.

Crowdsourcing copy from social media to reflect consumer language.

Use of nature‑themed imagery to reinforce the message.

Delegating sign‑off to product managers only.

Cross‑functional review against regulator guidance reduces risk of misleading claims and challenges.

A campaign claims ‘zero‑emission deliveries’ for a retailer. What safer phrasing avoids an absolute claim?

“Zero emissions in all parts of our operations.”

“Tailpipe emissions from last‑mile electric vans are zero; overall footprint varies by electricity source.”

“Carbon neutral forever.”

“100% sustainable deliveries globally.”

Absolute, unqualified claims are high‑risk; specificity and context about scope reduce the chance of misleading consumers.

Starter

You know the pitfalls—tighten claims to specific, provable attributes and add context on scope and limits.

Solid

Solid grounding—now align copy review with ASA/FTC principles, keep evidence files, and link claims to data and standards.

Expert!

Expert level: you structure lifecycle‑based claims, track jurisdictional shifts (CSRD/ISSB/Green Guides), and pre‑brief legal on sensitive ads.

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