Sustainable Truths: The Green Claims Code
As consumers are becoming more sustainability conscious this is not only positive for the planet but also presents a significant opportunity for businesses. Research shows that 32% of consumers are actively embracing a more sustainable lifestyle. Businesses that effectively convey their commitment to environmental responsibility stand to capture the largest share of this growing demographic.
One significant challenge in conveying sustainability messages is greenwashing. An online review carried out by the UK Competition and Markets Authority (CMA) discovered that 40% of green claims could be misleading. These include vague statements that use unclear language such as ‘eco’ or ‘sustainable’ without supporting evidence and neglecting information to appear eco-friendly.
The CMA introduced a Green Claims Code back in 2021, which highlights six key principles to address this issue in the UK. This initiative provides clear guidelines for businesses to adhere to and communicate sustainable claims transparently.
What is Greenwashing?
According to the Cambridge Dictionary Greenwashing is ‘behaviour or activities that make people believe that a company is doing more to protect the environment than it really is’. Simply greenwashing is a type of marketing, it is a way to make products more appealing to customers who care about the environment, businesses can either intentionally or unintentionally greenwash.
The complex nature of sustainability and the rapid pace at which consumers increasingly seek environmentally friendly brands and business practices result in numerous organisations inadvertently engaging in greenwashing to maintain relevance. When deliberately misleading greenwashing practices are included, it becomes very difficult to navigate the situation.
Greenwashing is deceiving. For a consumer it makes them think they are having a positive impact, when they are actually still supporting unsustainable business practices that are negatively impacting the planet.
What is the Green Claims Code?
More and More companies are adding green or positive environmental claims to their products and services. The Green Claims Code ensure that these environmental claims made by businesses comply with updated consumer protection law. This is the CMA’s answer to preventing greenwashing and applies to all businesses.
The code is not a law itself. Instead, it serves as accessible guidance in the form of six principles. These principles aid in understanding the existing laws related to trading standards on sustainability, making it the most reliable guide for brands to ensure compliance with legal requirements.
Source: The Green Claims Code (youtube.com)
What are the six key principles?
- Claims must be truthful and accurate
- Claims must be clear and unambiguous
- Claims must not omit or hide important relevant information
- Comparisons must be fair and meaningful
- Claims must consider the full life cycle of the product or service
- Claims must be substantiated
These principles ensure that any environmental claims on goods and services do not mislead customers and can be evidenced.
Why is the Green Claims Code relevant for my business?
Adhering to the principles set by the CMA enables businesses to avoid making false claims and not only face being criticised for greenwashing but leal action too. Rather than viewing the code as a potential trap for businesses, it should be perceived as a valuable tool for engaging with an expanding demographic of environmentally conscious consumers. Businesses can connect effectively with consumers on this subject, addressing their concerns and simultaneously safeguarding the company from the repercussions of greenwashing.
When claiming green or sustainable credentials a business should always:
- Be able to confidently answer the six questions of the Green Claims Code
- Provide evidence that supports the claims. Making the evidence easily accessible for the business consumers
- Request to review the information that supports claims, even from external sources, to ensure confidence that the message remains consistent across different individuals
- Establish a framework to track progress, a framework which can be updated regularly and share the information with those who are interested
Understanding the Green Claims Code is essential for businesses to stay at the same protectory as the rest of the world to achieve net zero by 2050 and being able to adapt for a greener future.
