11.1 Background and Context

For listed companies, staying silent on the topic of sustainability is no longer an option. However, when they do speak up, they often expose themselves to general suspicions of greenwashing. At the same time, numerous studies show that only a fraction of the companies and investments currently labeled as sustainable actually meet relevant sustainability standards. Greenwashing not only affects a company’s marketing activities but the entire value chain – from executive management and operations to financial and product markets. 

The reputational and legal risks faced by public companies are further heightened by the fact that the definition of “greenwashing” is at least just as open to interpretation as that of “sustainability”. Meanwhile, the proliferation of sustainability-related standards and regulations is increasing exponentially, and it remains notoriously difficult to obtain reliable data. Moreover, regulators worldwide – particularly in the EU¹ and also in Switzerland² – have declared war on greenwashing in an effort to channel capital flows into sustainable activities and build trust among investors.

The following sections describe (1) the emerging cornerstones of a definition of greenwashing, (2) the legal risks, (3) the resulting preventive measures for public companies in Switzerland and finally (4) summarize the results.