Regulations Against Greenwashing

Committee:
Sustainability & Social Responsibility
status:
New
Published:
As interest in ESG and sustainability grows in Japan, so does the risk of greenwashing, where companies make misleading claims about the environmental impact of their products, services, or strategies. In the absence of clear legal definitions and active enforcement, misleading claims can persist unchallenged, eroding public trust and confusing both consumers and investors. Civil society groups have raised concerns that the current advertising oversight mechanisms in Japan are not equipped to respond effectively to such issues, with some complaints remaining unanswered for extended periods. This highlights the need for a more robust and transparent regulatory framework.

Recommendations

The Japanese government should introduce clear and enforceable regulations against greenwashing. This includes:
  • Defining legal criteria for sustainability claims in advertising and product labeling
  • Requiring companies to substantiate claims with verifiable data and alignment with recognized international standards
  • Establishing independent review mechanisms and penalties for false or misleading sustainability claims
Stronger regulation would increase transparency, protect consumers, and ensure fair competition for companies investing genuinely in sustainability.