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Greenwashing convictions on the rise: Federal Court of Australia finds that Australian company engaged in greenwashing

Vanguard Investments Australia Ltd has recently been convicted for a greenwashing offence under Australian law. The ramifications of Vanguard’s conviction for greenwashing have already inflicted significant damage on the company. The negative media attention and resulting reputational damage alone are substantial indicators that greenwashing has not paid off for Vanguard. This article shall cover what greenwashing is, why it is becoming problematic for companies around the world and will explore the case of ASIC v Vanguard to highlight the negative consequences of greenwashing.

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July 11, 2024

Deal reached in European Union on products made with forced labour: what does this mean for Malaysia?

"In March, negotiators representing the European Parliament and the European Council reached a preliminary agreement on a new regulation aimed at banning products produced using forced labor from entering the EU market. This provisional agreement forms part of the standard legislative procedure within the European Union

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July 11, 2024

‍Further actions against greenwashing and why this could soon become more relevant for Malaysia

The term greenwashing has been often (mis)used by the media in recent months and years. But what is it, really? Greenwashing refers to the “process of conveying a false impression or misleading information about how a company’s products are environmentally sound. Greenwashing involves making an unsubstantiated claim to deceive consumers into believing that a company’s products are environmentally friendly or have a greater positive environmental impact than they actually do.”1 Greenwashing thus involves a deceptive practice employed to present an environmentally responsible image while their operations or products do not actually meet the standards set by this email. In the worst cases, operations or products may even harm the environment.

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The risks for Malaysian companies stemming from ESG disputes in global supply chains: a guide to mitigate the risks

As of 2024, Environmental, Social, and Governance (ESG) considerations have become increasingly important for businesses across industries. In Malaysia, company directors are duty bound to proactively and urgently apprise themselves of all aspects of climate change that can affect their companies. They must thus act to manage the full spectrum of climate related risks by integrating them into their corporate strategies, plans and actions, and ensure proper disclosure of such risks.

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A milestone in the fight of greenwashing: European Parliament adopts new directive aimed at protecting consumers from misleading marketing

The European Parliament’s resounding vote on 17 January 2024 in favour of a directive to combat greenwashing marks a significant milestone in the ongoing effort to protect consumers and uphold environmental integrity in marketing practices within the European Union. This directive, driven by mounting concerns over the proliferation of misleading environmental claims, represents a concerted effort to establish robust regulations that ensure transparency and accountability in the promotion of products and services.

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A Primer on Environmental Management in Malaysia: What Investors Should Know

Malaysia, celebrated for its biodiversity and economic vibrancy, is facing a crucial juncture between progress and environmental conservation. The nation has recognised the need to balance economic growth with the preservation of natural resources. As industries expand and urbanisation accelerates, environmental laws play a pivotal role in steering sustainable development. The Malaysian government has established a legal and institutional framework dedicated to environmental protection, urging investors to consider environmental factors in project planning. This includes modifying production processes to minimize waste and fostering a culture of self-regulation for pollution prevention and recycling alternatives. This article explores Malaysia's environmental legal landscape, examining the framework aimed at safeguarding the nation's diverse ecosystems.

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July 11, 2024