Governance & Risk News | ESG & Sustainability | OneStop ESG

Italy Investigates Shein for Alleged Greenwashing in Environmental Claims

The Italian Competition Authority has launched an investigation into online fashion retailer Shein’s operator, Infinite Styles Services Co, for possibly misleading environmental claims. The investigation centers around claims made in sections of Shein’s website, such as “#SHEINTHEKNOW,” “evoluSHEIN,” and “Social Responsibility,” which allegedly convey a false image of sustainability through vague or confusing statements on circularity, product quality, and responsible consumption. This inquiry is part of broader efforts by EU regulators to tackle greenwashing and ensure companies substantiate environmental claims. The European Commission has already introduced regulations, such as the Green Claims Directive, to address transparency issues in sustainability advertising. The fashion sector, known for its significant environmental footprint, is a key focus of these efforts. Shein has set emission reduction goals, but the Italian regulator noted inconsistencies between these targets and the company’s actual practices. Shein expressed its willingness to cooperate with authorities.

The Growing Importance of ESG: 64% of Asset Owners Prioritize Environmental Impact

The rising importance of environmental, social, and governance (ESG) factors in investment strategies is reshaping priorities for global asset owners. According to Morningstar's Voice of the Asset Owner Survey, 64% of asset owners now prioritize environmental issues, a notable increase from 52% in 2023. Climate change, especially the transition to net zero emissions, stands out as the top concern for 55% of respondents. This shift highlights the growing materiality of climate risks in financial decision-making and the alignment of ESG considerations with fiduciary responsibilities. Additionally, 78% of asset owners believe active engagement with portfolio companies is the most effective way to drive ESG policies. However, asset owners stress the need for more accurate, standardized ESG data, with 43% identifying data quality as crucial for improving sustainable investment practices. As environmental concerns take precedence, ESG integration continues to evolve as a critical component of long-term financial strategies.

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Hitachi Makes Strategic Investment in Envirosuite to Enhance Mining ESG Solutions

Ikea Takes on eBay with New Secondhand Marketplace

US Oil and Gas Sector Increases Production and Enhances ESG Performance Despite Price Drops: EY Report

South Africa’s Regulator Deems TotalEnergies’ Sustainability Claim Misleading, Highlighting Global Crackdown on Greenwashing

Galactic Greed or Green Skies? The ESG Battle in Space

56% of Companies Report No Impact from ESG Backlash, While Governance Takes Priority in Morrison Foerster’s 2024 Survey

Morningstar Reports Mixed Support for ESG Proposals in 2024 Proxy Season as Governance Gains Momentum

Goldman Sachs Bets Big on BrightNight with $440 Million Investment to Supercharge Renewable Energy