Greenwashing Guidelines: UK and US Eco-Claims Regulations

Regulatory frameworks and greenwashing guidelines set global standards for corporate sustainability communication.

In recent years, the surge in eco-friendly marketing claims has led to increased scrutiny from regulators, particularly in the United Kingdom and the United States. These nations have taken significant steps to combat greenwashing – the practice of making misleading or exaggerated environmental claims – by introducing comprehensive greenwashing guidelines for businesses.

See also: Is Lululemon Greenwashing?

The UK’s Competition and Markets Authority (CMA) has established the Green Claims Code, a framework designed to ensure businesses are truthful in their environmental messaging. This greenwashing guidelines code, introduced in September 2021, outlines six key principles that companies must adhere to when making green claims:

1. Claims must be truthful and accurate
2. Claims must be clear and unambiguous
3. Claims must not omit or hide important relevant information
4. Comparisons must be fair and meaningful
5. Claims must consider the full life cycle of the product or service
6. Claims must be substantiated

The CMA’s greenwashing guidelines code applies to all sectors and types of businesses, from small local companies to large multinational corporations. It covers claims made in advertisements, product labeling, and marketing materials, both online and offline.

Across the Atlantic, the US Federal Trade Commission (FTC) has long been at the forefront of regulating green marketing claims through its Green Guides. First introduced in 1992 and most recently updated in 2012, these guides to greenwashing guidelines provide marketers with clear advice on how to make environmental claims that are not deceptive.

The FTC Green Guides cover a wide range of environmental claims, including:

1. General environmental benefit claims
2. Carbon offsets
3. Certifications and seals of approval
4. Compostable claims
5. Degradable claims
6. Free-of claims
7. Ozone-safe and ozone-friendly claims
8. Recyclable claims
9. Recycled content claims
10. Renewable energy claims
11. Renewable materials claims
12. Source reduction claims

While neither the UK’s Green Claims Code nor the FTC’s Green Guides are legally binding, the greenwashing guidelines serve as important benchmarks for industry practices. Regulatory bodies can use these guidelines as evidence in legal actions against businesses that violate them. Companies found to be in violation of the greenwashing guidelines can face significant consequences, including financial penalties, reputational damage, and legal action.

Implementing the greenwashing guidelines has already had a notable impact on various industries. In the fashion sector, retailers like Asos and Boohoo are just two of many who have faced increased scrutiny over their sustainability claims. Asos’s “Responsible Edit” collection and Boohoo’s “Eco Edit” line have both been criticized for lacking transparency about their product’s environmental impact.

The automotive industry has also been affected, with companies like Volkswagen and Fiat Chrysler facing high-profile scandals involving emissions cheating and misleading fuel economy claims. Volkswagen’s “Dieselgate” scandal, which involved the installation of software to cheat emissions tests, resulted in billions of dollars in fines and settlements.

In the food and beverage sector, terms like “organic,” “sustainable,” and “plant-based” are under increased scrutiny. Companies using these labels must now ensure that their claims are substantiated and align with regulators’ greenwashing guidelines.

The introduction of these regulatory frameworks has prompted a shift in how companies approach their environmental marketing strategies. Many businesses are now investing in more robust sustainability practices and transparent reporting to ensure compliance with the guidelines.

These guidelines provide consumers with a valuable tool for evaluating environmental claims. Shoppers can make more informed decisions and identify potential greenwashing by understanding the principles outlined in the UK’s Green Claims Code and the FTC’s Green Guides.

However, challenges remain in the global fight against greenwashing. The lack of uniformity in international regulations creates complexities for multinational corporations operating across different markets. While the UK and US have taken leading roles in addressing this issue, many countries are still developing comprehensive frameworks to tackle greenwashing.

As the global focus on sustainability intensifies, other nations are likely to follow suit, potentially leading to more standardized international guidelines for environmental claims. This would benefit consumers and create a more level playing field for businesses committed to genuine environmental stewardship.

The battle against greenwashing is ongoing and requires vigilance from regulators, businesses, and consumers alike. The UK’s Green Claims Code and the FTC’s Green Guides represent significant steps forward in this fight, providing clear benchmarks for environmental marketing practices.

As companies navigate this changing landscape, those who can demonstrate an authentic commitment to sustainability and align their practices with these guidelines will likely gain a competitive edge. For consumers, the task is to remain informed about these guidelines and hold companies accountable for their environmental claims.

In this new era of environmental marketing, the challenge for businesses is clear: to align their practices with their promises and to communicate their efforts transparently and accurately. As the regulatory landscape evolves, companies prioritizing genuine sustainability efforts and honest communication will be best positioned to thrive in an increasingly eco-conscious marketplace.