Consumers are becoming increasingly eco-conscious, and as such, companies need to ensure that they communicate their sustainability efforts effectively and compliantly. The Green Claims Code provides guidelines to ensure that businesses make clear, accurate and honest environmental claims, preventing greenwashing and promoting transparency. Understanding and adhering to these guidelines has become crucial for companies looking to maintain trust and avoid accusations of greenwashing.
What is the Green Claims Code?
The Green Claims Code is a set of guidelines developed by the Competition and Markets Authority (CMA) in the UK to help businesses comply with consumer protection law when making environmental claims. It aims to ensure that green claims are genuine, accurately describing the impact of a product, brand, business, or service, with evidence to back it up. The code's key purpose is to combat greenwashing and protect consumers from misleading environmental claims.
Six key principles
The Green Claims Code consists of six main points that businesses need to review:
- Accuracy and truthfulness of claims
- Evidence to corroborate claims
- Clarity of claims
- Inclusion of all important facts
- Consideration of the full product/service life cycle
- Fair comparisons
Importance in Combating Greenwashing
The code is crucial in preventing misleading practices, such as claiming a product is "fully recyclable" when it's only partially recyclable. It helps businesses avoid making unsubstantiated environmental claims, which can lead to fines, removal of advertising or products, and in severe cases, imprisonment for company officers. Businesses can build confidence with environmentally conscious customers by adhering to the code, which strengthens the accuracy and transparency of their green statements.
Your Guide to Understanding the Green Claims Code
Understanding all the principles contained in the code may be complicated for some organisations. To assist with this, our sustainability scientists at Tunley Environmental have put together a comprehensive guide that’s free to download. The guide explains in detail everything there is to know about the Green Claims Code and best practices to adopt when integrating it into your business operations. Adhering to this guide will not only help your organisation comply with regulatory requirements but will also build trust with customers and make meaningful contributions towards a sustainable future.
In this guide, you will learn:
- The importance of accurate, transparent and trustworthy environmental marketing claims.
- How businesses can ensure their claims are truthful, clear, substantiated and consider the full life cycle impact of products.
- The link between Carbon Assessments and Green Claims.
- Examples of non-compliant and compliant green claim statements.
- Global regulations for greenwashing, including rules from EU, UK, US, Hong Kong, China, India, and more.
The Green Claims Code Guide is an invaluable resource for any organisation looking to make honest and impactful environmental claims. Whether you’re a sustainability leader, marketer, or business owner, this guide will help you navigate the complexities of green marketing and avoid greenwashing.
Best Practices for Making Green Claims
Avoiding vague or general statements
Businesses should steer clear of ambiguous environmental claims that can confuse consumers or exaggerate a product's eco-friendliness. Instead, they should focus on specific, measurable commitments that accurately represent the scale of environmental benefits. Claims about future environmental performance should be accompanied by time-bound commitments regarding operations and value chain.
Using clear and specific language
Companies need to use plain, unambiguous language when describing environmental benefits. They should provide concrete evidence of sustainability efforts rather than relying on buzzwords or vague claims. For instance, instead of using terms like "pure" or "natural," businesses should explain what their packaging is made of and why it's beneficial for the planet.
Providing accessible supporting information
Businesses must back up their environmental claims with current, credible and relevant evidence. This information should be readily available to the public, either physically or digitally. The supporting data should include details about environmental aspects covered, relevant standards and studies supporting the claim. This transparency helps build trust with consumers and contributes to a positive brand perception.
Benefits of the Green Claims Code Guide for Organisations
By downloading and implementing the insights from our Green Claims Code Guide, your organisation can:
Enhance Brand Credibility: Making accurate, transparent claims helps build trust with your customers, leading to stronger brand loyalty.
Avoid Legal Risks: Stay on the right side of regulations by ensuring your environmental claims meet the required standards.
Strengthen Sustainability Efforts: Align your marketing with your sustainability goals, making your green initiatives more impactful and credible.
Increase Market Competitiveness: Stand out in the marketplace by demonstrating a genuine commitment to environmental responsibility.
The Bottom Line
The Green Claims Code has a significant influence on shaping responsible marketing practices in the environmental sphere. These recommendations can help companies gain the trust of customers and steer clear of the dangers of greenwashing. The code encourages businesses to consider the environmental impact of their products more comprehensively and assists them in adhering to consumer protection rules.
