Jurisdiction(s):
United Kingdom

ESG 2026: greenwashing litigation surge, competition and consumer enforcement, fragmented regimes, maturing net-zero targets, expanding circular economy EPR, and intensified supply chain forced labour due diligence

Published on: 21 January 2026

Published by a Law360 reporter

Legal News

Article summary

Following a disorderly 2025—marked by shifting rules and unproven legal theories—2026 looks marginally more predictable, though no less tough. Businesses should anticipate ongoing growth in disputes, from greenwashing class actions to state‑led consumer protection cases. A fragmented regulatory scene—a tug‑of‑war between US federal and state authorities, alongside indecision within the European Union—will keep compliance complex for multinational companies.

Greenwashing risk shifting from regulation to litigation

Where we are

For at least a decade, companies have encountered rising exposure from government enforcement and private actions over ‘greenwashing’—overstated or misleading claims about environmental benefits tied to products or corporate behaviour. Attempts on both sides of the Atlantic to toughen the rules—an update to the Federal Trade Commission’s Green Guides and the draft EU Green Claims Directive—have stalled. Meanwhile, consumer‑centred litigation is accelerating. Recently, firms across technology, food, fashion, airlines and other sectors have been hit with class actions alleging greenwashing, challenging claims ranging from carbon neutrality to green product labels. State attorneys general have also been active, notably in New York and California...

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