The Global Greenwashing Report #2
- John Pabon
- Sep 12
- 6 min read
Welcome to the second edition of The Global Greenwashing Report. Each week I'll bring you the latest news, views, and trends in the world of greenwashing.
If you thought last week's triple-threat ACCC prosecutions were aggressive, wait until you see what regulators did to Shein. Italy's competition authority (AGCM) imposed a €1 million fine on the fast-fashion giant on Monday for misleading customers on the environmental impact of its products.
But here's the kicker: This is Shein's second financial penalty in Europe in barely a month. France’s antitrust agency issued the company with a €40 million penalty in July. They found Shein had engaged in misleading consumers on the scope of their commitments concerning environmental claims.
We're witnessing regulators adopt a "rapid-fire enforcement" strategy that's catching companies completely off-guard. While Australian businesses watched the ACCC's landmark cases unfold, European regulators quietly developed their own playbook.
This week, we're tracking how international enforcement patterns are reshaping global corporate behaviour, why Australia's approach is influencing regulatory strategy worldwide, and the emerging red flags that spell trouble for any company still treating sustainability claims casually.
This Week’s Greenwashing Big Three
1. Fast Fashion and Faster Enforcement
The Situation: Italy's competition authority (AGCM) imposed a €1 million fine on China-founded fast fashion online retailer Shein on Monday for misleading customers on the environmental impact of its products. This was in addition to French authorities levelling a €40 million penalty in July for greenwashing and a hefty €150 million fine for unethical behaviour just this week.
Italian authorities found that sustainability and social responsibility messaging across Shein's platform misleadingly suggested environmental responsibility while the company operates one of the most environmentally damaging business models in fashion.
John's Take: This isn't just another fast fashion fine. It's proof that European regulators have learned from Australia's approach. Two significant penalties in one month signals a fundamental shift from lengthy investigation cycles led by Brussels, to rapid-strike enforcement at a state level. It also leads me to believe Italy's AGCM is essentially beta-testing the "high-frequency fine" model that other regulators may watch closely.
Business Impact: Companies can no longer bank on regulatory delays providing cover for questionable claims. The time between suspicious messaging and financial consequences has compressed dramatically.
2. A New Era for Consumer Protection Takes Hold
The Situation: Staying in Europe, the UK's April decision to allow the country's Competition and Markets Authority (CMA) to impose fines of up to 10% of a company's global annual turnover for breaches of UK consumer protection laws is starting to have ripple effects.
The financial deterrent evident in the regime isn't necessarily about hunting down specific violations. Sure, it covers any misleading environmental and social claims a company might make. It's much more a way to make greenwashing an economic irrationality, however. Ten percent is a huge amount to lose just to try and fool the public.
John's Take: The UK has weaponised mathematics against greenwashing. While other jurisdictions impose fixed-amount fines, the UK's revenue-based system means penalties scale with company size. A €1 million fine might be manageable, but 10% of global revenue could be existential.
Business Impact: Multinational companies are restructuring their legal and marketing review processes specifically around UK exposure. The compliance tail is wagging the global marketing dog.
3. One Step Forward...
The Situation: It's amazing how much can happen in just a week. As to be expected, though, that includes a lot of ups and downs.
Australia’s much-beloved koala was set to go extinct in New South Wales by 2050. But in a major win for animal-loving Aussies, the New South Wales Government announced the creation of a Great Koala National Park this week. They’ve done this by putting an immediate moratorium on logging in 176,000 hectares of state forest. This move will hopefully help turn the tide and increase koala numbers.
Austria tried, and failed, to prevent the EU categorising nuclear power and natural gas as sustainable. On Wednesday, the EU General Court dismissed a suit by Austria that would have allowed nuclear and gas to be called sustainable for the purposes of investment. In response, the Parliamentary Leader of the Austrian Greens said, "[t]his ruling sends a disastrous signal to the entire EU. If this assessment stands, it destroys a basic principle: where it says green, it is no longer truly green."
Apple premiered its newest smart watch iteration this past week. But in a curious move, they failed to talk up much in the way of its environmental impact. Compare this to the past two years where carbon neutrality was front and centre. In fact, Apple had promised to make all products carbon neutral by 2030. Why the shift? Perhaps it has something to do with inventive accounting on Apple's part, using carbon credits to talk up the watch's environmental credentials. Rather than get caught greenwashing, they're keeping real quiet this time around.
Denmark is trying to keep the EU's green dreams alive, but is meeting fierce resistance from delegations that claim overreach and a lack of transparency. The Danes were pushing for an 18 September vote on the bloc's 2040 emission's targets, in time for the UN General Assembly, but at least seven countries are standing in the way. They want more time to consider, and to send this to capitals for further input. Whether anything will happen this year is now up in the air.
Australia's Northern Territory may become largely unliveable by 2070 due to climate change. That sobering fact, along with new data showing the Territory's emissions grew by 98% since 2005, came courtesy the Executive Director of the Northern Territory Environment Centre, Dr. Kirsty Howey, this week. She calls the Territory "...a regulatory carnage zone," in regard to climate action," adding that it is "...pursuing some of the most polluting fossil fuel projects in the country, from the Beetaloo Basin carbon bomb, to Santos’ toxic Barossa project, to the taxpayer funded Middle Arm gas and petrochemical hub."
Business Impact: The shutter step in regulatory mechanism approvals may appear to some like a great time to take their foot off the ESG gas. But smarter companies know it's actually an opportunity to fast track their sustainability credentials and differentiation. Pressure from civil society and consumers sits separate to the halls of power (and shows no signs of letting up). That means those organisations resting on their laurels will quickly find themselves on the back foot if they don't act now.
How Australia Took the Lead in Policing Greenwashing
This past week, I sat down with Robin Hicks of the Eco-Business podcast. We discussed how Australia has became Asia Pacific’s most progressive country in holding green claims to account. In particular, we walked through:
The lay of the land. What cases have we seen this year alone?
The why. How did Australia get to grips with greenwashing?
Global context. Has Australia been influenced by Trump and a pivoting Europe?
Trips and slips. Why companies keep making mistakes.
Shhh. Greenhushing and how this leads to even more corporate vulnerability.
This is essential listening for anyone thinking about, engaging in, or wanting to counter the scourge of greenwashing (and greenhushing) happening in the private sector.
For the full transcript, head over to the Eco-Business website.
This Weekend's Essential Reading
Looking for something juicy to sink your eyeballs into this weekend? Here's a handy list of what I'm reading.
The Tangle of Biodiversity Credits: Solution or Greenwashing? by Dialogue Earth.
Greenwashing Debt in the Galápagos Islands, by The North American Congress on Latin America (NACLA). They also have an amazing series looking at the impact of the upcoming COP in Brazil.
B&T published what looks like a poor attempt at greenwashing, sponsored by WPP Media: Consumers Seem To Be Moving On From Brand Purpose & Environmental Concerns As Prices Bite.
How the 3-Arrows 'Recycling' Symbol Turned Into a Tool for Greenwashing, in Fast Company.
EV Progress Report: Which EU Carmakers are on Track for 2025-27 Targets? Research published by green mobility NGO T&E.
And a not-so-funny funny to round things out.
Ready to bulletproof your organisation against the new enforcement reality? I help companies navigate this rapidly evolving landscape while building authentic sustainability strategies that actually work. Schedule a time to talk or book in a complimentary 30-minute risk assessment here.
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