Greenwashing, what is the standard by which it becomes a problem in corporate promotion?

Greenwashing refers to the act of exaggerating a product as more eco-friendly than it actually is or promoting it in a way that differs from the facts, and it is a legal risk that can lead to a violation of the Act on Fair Labeling and Advertising and of ESG regulations.

In addition, if it is assessed not as a marketing issue but as false or exaggerated advertising, it is a matter that can lead to an administrative disposition, the imposition of a penalty surcharge, and even civil compensation for damages.

In particular, if it becomes a problem in the course of ESG disclosure or attracting investment, it can also affect the credibility of the company.

Whether something constitutes greenwashing is judged mainly by the following criteria.

① Whether it is true
The most important point is whether there is objective supporting evidence for the eco-friendly claim.

② Accuracy of expression
A problem can arise where only some eco-friendly elements are emphasized so as to present the entire product as eco-friendly.

③ Whether information is omitted
Where unfavorable environmental information is intentionally excluded, this too can be assessed as greenwashing.

④ Possibility of consumer misunderstanding
How ordinary consumers perceive the expression serves as the standard of judgment.

A company may promote eco-friendly elements in the course of its ESG response, but in order not to be assessed as engaging in greenwashing, it needs to secure objective evidence and manage the accuracy of its expressions.

Where greenwashing may become an issue, it is necessary to clearly organize the type of violation and the scope of responsibility, systematically prepare the relevant materials, and then respond in an organized direction in preparation for any administrative investigation and sanction procedures that may follow.