Greenwashing involves creating a false impression of environmental responsibility that contradicts a company's actual practices and products. Its prevalence is often underestimated.1 A recent EU proposal for a Directive on substantiation and communication of explicit environmental claims (Green Claims Directive)—expected to enter into force in the first half of 2024—aims to curb this misleading behavior.The Green Claims Directive mandates strong evidence for claims, necessitating third-party verification. Amid this changing landscape, company leadership must embrace genuine environmental commitments.Proactive leadership is crucial to align business practices with legitimate sustainability goals. Companies should anticipate a rise in consumer complaints and greenwashing class action litigation. The newly proposed EU laws— Green Claims Directive—empower consumers to hold companies accountable for misleading environmental claims and requires companies to substantiate their green claims. Companies should proactively review and, if necessary, revise their internal policies on environmental claims to ensure compliance.Beyond avoiding greenwashing, companies must also be wary of greenhushing, the act of concealing or downplaying their sustainability efforts to avoid scrutiny or criticism. In today's environmentally conscious marketplace, companies must strike a balance between avoiding greenwashing and embracing transparency. Greenhushing can be just as detrimental to reputation as making misleading claims.