Which? analysis of products’ environmental claims finds widespread greenwashing

Which? has just released data from a recent investigation into more than 20,000 online product listings. It finds that more than 6 in 10 products failed checks in relation to multiple principles of the Competition and Market Authority (CMA)’s Green Claims Code. As we write about here, the CMA’s Green Claims Code makes clear that companies should have robust, credible, relevant and up-to-date evidence available to support any claims made. More specifically, it mandates six principles for green claims, including that they must be truthful and accurate, clear and unambiguous and not omit or hide important information. Which? found that only 16% of products reviewed did not fail any checks, while 62% of the products failed checks related to at least two of the Green Claims Code’s principles.

The investigation showed that products are most likely to fail the two Green Claims Code’s principles of “Claims must be clear and unambiguous”—where vague or general terms, such as “sustainable” or “environmentally friendly” were used without justification, explanation or context—and “Claims must be substantiated”—where claims did not provide evidence in the description or signpost to consumers where evidence could be found. 

Companies making claims about their environmental credentials should be concerned. It is surprisingly easy, even for businesses with the best of intentions, to stray into misleading territory. This is particularly so because it is not enough that the claim in question is accurate and substantiated if – looked at in the context of wider business activity – the claim nonetheless creates a misleading impression of the overall environmental impact of a product, service or business. Civil claims for alleged greenwashing are on the increase and regulators (both financial and consumer) across the EU, UK and further afield are increasing the pace and vigour of their crackdown on misleading green claims, with potentially serious reputational and financial consequences for businesses. 

Given these risks it is critical any environmental/sustainability claims are reviewed – where appropriate by external legal counsel – for compliance with the CMA’s Green Claims Code and any frameworks applicable in relevant international markets. Companies should also have a robust review and decision-making process for sign-off of new green claims, in particular where such responsibility falls between the business’ marketing, sustainability and legal teams.

For further guidance and tailored advice on greenwashing legislation or anything else discussed in this Quick Read, please get in touch with kerry.stares@crsblaw.com or with your usual Charles Russell Speechlys contact.