Sustainability is no longer a niche topic—it’s a business imperative. Consumers are increasingly prioritizing environmentally responsible products and services, and businesses are responding by making bold green claims. But with increasing scrutiny from regulators and watchdogs, how can companies ensure their environmental messaging is both credible and compliant?
The UK’s Green Claims Code, published by the Competition and Markets Authority (CMA), lays out clear guidelines to help businesses avoid misleading customers. This is crucial in an era where greenwashing—false or exaggerated sustainability claims—can damage reputations, lead to legal consequences, and erode trust. Here’s what businesses need to know to ensure their sustainability claims hold up to scrutiny.
What Are Green Claims?
Green claims (also called environmental or eco-friendly claims) communicate that a product, service, or business has a positive or reduced impact on the environment. They appear on packaging, advertisements, websites, and marketing materials, influencing consumer choices. When backed by solid evidence, these claims can strengthen a brand’s credibility. When misleading, they can have serious consequences.
The Green Claims Checklist: Are You Compliant?
To meet consumer protection laws, businesses should ensure their sustainability claims align with the following principles:
✅ Be Accurate and Clear
- Claims must be easy to understand and free from vague or misleading language.
- General terms like ‘eco-friendly’ or ‘sustainable’ should reflect the full lifecycle impact of a product or service.
- Example: A clothing brand advertising a ‘sustainable’ jacket should clarify whether this refers to its recycled materials, ethical manufacturing, or end-of-life recyclability.
✅ Provide Credible, Up-to-Date Evidence
- Every claim must be backed by reliable, transparent, and current data.
- Independent verification or third-party certification strengthens credibility.
- Example: A coffee brand claiming ‘carbon-neutral production’ should provide verifiable carbon offset certificates and lifecycle assessments.
✅ Tell the Whole Story
- Claims must not cherry-pick benefits while ignoring negative environmental impacts.
- If a product is ‘recyclable,’ specify whether it’s widely accepted in recycling programs.
- Example: A biodegradable plastic cup should specify if it requires industrial composting or if it breaks down in home compost bins.
✅ Avoid Exaggeration
- Don’t overstate the positive impact—customers can see through inflated claims.
- If a benefit is legally required (e.g., ‘CFC-free’ aerosols), it’s not a unique selling point.
- Example: A detergent marketed as ‘phosphate-free’ should acknowledge that phosphates have been banned in detergents for years, rather than implying it is a unique environmental benefit.
✅ Make Comparisons Fair and Transparent
- Comparative claims must be clear, justified, and not misleading (e.g., ‘50% less plastic than our previous packaging’ must specify the baseline for comparison).
- Example: A bottled water company claiming ‘less plastic’ should clarify if it’s compared to an industry average, a previous version of its bottle, or a competitor.
✅ Ensure Accessibility
- Key details should be available and easily accessible (e.g., via QR codes or websites).
- If crucial information is hidden or difficult to find, the claim risks being misleading.
- Example: A solar panel company stating ‘zero emissions energy’ should provide details on materials used, manufacturing emissions, and expected panel lifespan on its website.
The Risks of Non-Compliance
Misleading green claims don’t just harm consumer trust—they come with real legal risks. The CMA and Advertising Standards Authority (ASA) actively monitor and take action against businesses that fail to comply. In fact, a 2022 CMA investigation found that 40% of green claims could be misleading, underscoring the growing regulatory focus on environmental marketing.
Additionally, transparency isn’t just about compliance—it’s also what consumers demand. According to IBM & NRF (2021), 73% of global consumers would change buying habits to reduce environmental impact, showing the increasing weight sustainability has in purchasing decisions. Misleading green claims don’t just harm consumer trust—they come with real legal risks. The CMA and Advertising Standards Authority (ASA) actively monitor and take action against businesses that fail to comply. If a company is found to be in breach of consumer protection laws, they may be required to:
- Withdraw or revise misleading claims.
- Compensate affected customers.
- Face potential fines or legal action.
Building a Trustworthy Green Brand
Businesses looking to showcase their environmental commitment should prioritize transparency, accountability, and ongoing improvement. However, just as greenwashing poses a significant risk, greenhushing—the practice of under-communicating sustainability efforts—can also be detrimental. A 2022 South Pole study found that over 40% of sustainability-leading companies admit to underreporting their efforts due to fear of scrutiny. But failing to share legitimate progress is a missed opportunity to engage stakeholders, inspire industry-wide action, and gain consumer trust.
Sustainability communication is about balance: overstatement leads to reputational damage, while silence leads to lost credibility. Companies should confidently share their sustainability journey with transparency, acknowledging both achievements and areas for improvement. Businesses looking to showcase their environmental commitment should prioritize transparency, accountability, and ongoing improvement. Here are some best practices:
- Embed sustainability into your core strategy. Authenticity comes from real action, not just marketing.
- Use third-party certifications. Labels like B Corp, Fair Trade, or Carbon Trust enhance credibility.
- Educate your audience. Help consumers understand your sustainability efforts with clear, engaging content.
- Continuously review and update claims. Sustainability is a journey, and claims should evolve with verifiable progress.
Final Thoughts
Making honest, evidence-backed green claims is not just about avoiding legal trouble—it’s about earning long-term trust. Consumers want to support brands that align with their values, and businesses that communicate transparently will build stronger relationships with their audience.
If you’re serious about sustainability and want expert guidance, our team can help. Chat with us today to review your claims, ensure compliance, and build a credible climate strategy that strengthens your brand’s reputation.
Sources
- Competition and Markets Authority (CMA). (2022). The Green Claims Code Checklist. Available at: Gov.uk
- IBM & NRF. (2021). Consumers want it all. Available at: IBM
- South Pole. (2022). The State of Corporate Climate Action: Greenhushing and Its Impact. Available at: South Pole
- Advertising Standards Authority (ASA). (2022). Advertising Guidance - misleading environmental claims and social responsibility. Available at: ASA
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