In 2025, the regulatory focus on greenwashing intensified globally. Substantial fines and landmark legal decisions highlighted the financial and reputational risks of misleading stakeholders about sustainable practices. This trend is set to accelerate in 2026, and compliance has a key part to play in ensuring corporate statements are honest. 

Richard Parlour, CEO of Financial Markets Law International and expert in “terracide” and financial crime, said the rise in legal action is not surprising given that greenwashing constitutes misrepresentation. The basic offense is not new.

Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine...