Navigating the Green Landscape: A Guide to Avoiding Greenwashing

In today's environmentally-conscious landscape, it's more important than ever for businesses to be transparent about their sustainability efforts. However, the temptation to engage in greenwashing - the practice of making misleading or false claims about a company's environmental impact - is a real risk.

In the UK, the rise of greenwashing has significant implications. It erodes public trust in eco-friendly claims, making it harder for consumers to make informed decisions. This, in turn, can hinder the adoption of genuine sustainable practices and slow down the progress towards the government’s effort to achieve net zero emissions by 2050.

By taking a proactive, honest approach to sustainability, companies can build trust with customers and regulators, while making a meaningful difference for the planet. This guide outlines practical strategies to steer clear of greenwashing and showcase your genuine environmental commitments.

Legal Implications

Greenwashing can lead to legal consequences, including fines and damage to your brand’s reputation. Greenwashing has become an increasingly prevalent issue in the UK, with companies making misleading claims about the environmental friendliness of their products or services. Greenwashing can lead to unfair competition, as companies engaging in this practice may gain an unfair advantage over those genuinely committed to reducing their environmental impact. This can stifle innovation and discourage businesses from investing in meaningful sustainability initiatives.

Regulatory bodies in the UK, such as the Competition and Markets Authority (CMA), have recognised the need to address greenwashing. They have introduced guidelines and enforcement measures to ensure that companies make accurate and substantiated environmental claims. However, more needs to be done to hold businesses accountable and protect consumers from deceptive practices.

On 29 July 2022, the CMA launched an investigation to scrutinise environmental claims made by ASOS, Boohoo and George at Asda about how their fashion products are being marketed to customers as eco-friendly. On 27 March 2024, the CMA accepted undertakings from ASOS, Boohoo and George at ASDA to use only accurate and clear green claims. The undertakings secured by the CMA commit ASOS, Boohoo and George at Asda to change the way they display, describe and promote their green credentials.

To avoid the dangers of greenwashing, businesses should focus on implementing genuine, verifiable sustainability initiatives. This includes conducting thorough audits of their operations, setting measurable goals, communicating their progress transparently, relying on third-party certifications and avoiding vague or unsubstantiated claims. We set out below our guidance on how to spot the red flags and avoid the risks of greenwashing.

For Consumers

1. Research the Company and their Product or Services

Check Certifications: Look for credible third-party certifications like Fair Trade or Organic. These certifications indicate compliance with recognised environmental and social standards.

Investigate Claims: If a product or service claims to be “eco-friendly” or “green”, look deeper into what that means. Check the company’s website for detailed information about their environmental practices.

2. Be Wary of Vague Language

Watch Out for Buzzwords: Terms like “natural”, “green”, or “eco-friendly” are often used without clear definition. Be cautious of products that use terms without providing specific information.

Demand Clarity: Look for specifics. For example, if a product claims to be “biodegradable”, it should state how long it takes to biodegrade and under what conditions.

3. Examine the Packaging

Material Matters: Check if the packaging is made from recycled materials or is itself recyclable. Be cautious of products with excessive packaging that undermines environmental claims.

Look for Transparency: Packaging should clearly indicate what the environmental benefits are and whether they are significant.

4. Check Company Reputation

Look for Consistency: Investigate whether the company consistently follows sustainable practices across all products and operations, not just for a select few items.

Do Your Due Diligence: Look at independent reviews and sustainability reports from NGOs or watchdog organisations. Websites like Ethical Consumer or Good On You can provide insights.

For Businesses

1. Be Transparent

Disclose Information: Clearly communicate your company’s environmental policies, practices and goals. Make this information easily accessible to consumers.

Admit Shortcomings: If your company is still working towards sustainability goals, be honest about where you currently stand. Consumers appreciate transparency and are more likely to trust a brand that is open about its journey.

2. Use Accurate and Specific Language

Avoid Misleading Terms: Refrain from using broad, vague terms like “eco-friendly” without backing them up with concrete evidence or data.

Provide Details: If you claim a product is “sustainable” explain what makes it so. Is it made from recycled materials? Is it produced with reduced carbon emissions? The specifics matter.

3. Pursue Legitimate Certifications

Seek Third-Party Verification: Apply for recognised environmental certifications relevant to your industry. These provide credibility and can differentiate your products from those that are merely “greenwashed”. Certifications like “B Corporation” measure and manage your company’s impact on its employees, communities, customers and the environment.

Stay updated: Ensure that your certifications are current and comply with the latest standards.

4. Invest in Genuine Sustainability Initiatives

Long-Term Commitment: Implement sustainable practices that go beyond marketing. This could involve sourcing sustainable materials reducing waste and investing in renewable energy.

Engage with Stakeholders: Work with environmental organisations, industry groups, and your customers to continuously improve your sustainability efforts.

Marketing Tips

1. Brand Trust

Consumers are increasingly savvy and sceptical of green claims. Misleading marketing can erode trust, which is hard to rebuild.

2. Promote Authenticity

Focus on Real Benefits: Highlight environmental benefits of your products or services and avoid exaggeration.

Storytelling with Substance: Use storytelling to communicate your brand’s sustainability journey but ensure that it’s backed by facts and figures.

3. Educate Your Audience

Provide Context: Help consumers understand the importance of the environmental benefits you’re promoting. Explain why it matters and how it contributes to broader sustainability goals.

Encourage Critical Thinking: Empower consumers to make informed decisions by being transparent about what your products can and cannot do.

4. Monitor and Adapt

Stay Informed: Keep up with latest trends and, regulations and consumer expectations regarding sustainability. Adapt your strategies accordingly to maintain credibility.

Solicit Feedback: Regularly seek feedback from consumers and environmental experts to ensure your marketing aligns with your sustainability practices.

Avoiding greenwashing is crucial for building trust and fostering genuine progress in sustainability. Whether you’re a consumer, business, or marketer, understanding how to recognise and avoid greenwashing will contribute to a more honest and sustainable marketplace. Always prioritise transparency, accuracy and a commitment to continuous improvement in your environmental efforts.

If you have any queries about Greenwashing, please do not hesitate to get in touch by telephone on 0207 052 3545 or by email info@kaurmaxwell.com

This article is for general information only. Its content is not a statement of the law on any subject and does not constitute advice.

Please contact KaurMaxwell for advice before taking any action in reliance on it. 

By: Maria Madara