Greenwashing is the flavour of the month.

In January, plant-milk brand Oatly was ordered by the Advertising Standards Authority (ASA) not to repeat misleading adverts and social media posts. The ads claimed that “Oatly generates 73% less CO₂e vs. milk” but this was only accurate when comparing with Oatly Barista Edition and not all Oatly products. The ASA had received 109 complaints about the advertising.

Also last month, Pepsi had an ASA complaint against them upheld. A bus shelter advert for Lipton Ice Tea included the words “Deliciously Refreshing, 100% Recycled*” and shots of the bottles with a recycling logo and text stating “I’m 100% recycled plastic”. The asterisk in the first statement led to text at the bottom of the poster which stated the cap and label were excluded, but the ASA found that owing to the small size of the text and its placement, it could be overlooked and the overall impression was that the whole bottle was made from recycled materials.

CMA action

Another regulator is focusing its sights on greenwashing too.

January 2022 also saw the Competition and Markets Authority (CMA) launch their first sector compliance review under their new Green Claims Code spotlighting fashion retail. This sector accounts for approximately £54 billion of spending in the UK annually, and is estimated to be responsible for 2-8% of global carbon emissions.

Other sectors potentially up for review include: travel and transport, and fast-moving consumer goods (food and beverages, beauty products and cleaning products). The CMA has warned, however, that it will take appropriate action against any non-compliant business even whilst reviews are ongoing.

Green Claims Code

The Green Claims Code was launched in September 2021 following consultation with businesses and consumers around green marketing. It applies throughout the supply chain, including to manufacturers, wholesalers, distributors and retailers, and to both goods and services during the whole lifecycle of a product.

It is based on six key principles:

• Claims must be truthful and accurate – broad terms such as “green” and “eco-friendly” may be deemed unclear and risk creating a more favourable impression than is justified.
• Claims must be clear and unambiguous – when using terms such as “biodegradable” and “recyclable” it must be made clear whether this refers to the product or the packaging, and which parts.
• Claims must not omit or hide important relevant information – QR codes could be used to give more detailed information.
• Comparisons must be fair and meaningful – comparative claims should be capable of being substantiated by transparent and accurate evidence that consumers can verify, and comparators should meet the same needs or be for the same purpose.
• Claims must consider the full lifecycle of the product or service – if it is stated that a product has “33% lower carbon impact” this must be based on the entire lifecycle, including e.g. transportation.
• Claims must be substantiated – when using the terms “cleanest” or “best” this must be backed up with evidence.

Business to business sales

The CMA will be looking not just at consumer facing activities: its remit extends to business to business sales where the principles should also be applied.

The way forward

Looking to the future, it is clear regulatory bodies are going to be taking more action against businesses who make misleading environmental claims.

The CMA and ASA have various powers at their finger tips to take action against businesses that are seen to be greenwashing.

It is important that all businesses take a fresh look at their customer facing activities, including advertising, marketing, packaging and labelling, to ensure they are compliant.

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