Deceitful, sneaky, brazen – some of the words used to describe marketing claims promoting a company’s environmental attributes.

It’s also become known as greenwashing, because there’s a belief the positive claims may be ‘hiding’ other less admirable actions. But is this a fair reflection of intent and what can companies do to remain credible in the public’s eye?

What is it?

Greenwashing is not a new term. It was first coined back in the 1980s when American environmentalist Jay Westerveld ‘outed’ a hotel encouraging guests to reuse towels, while seemingly unconcerned by, or willing to highlight, its other less environmentally sensitive activities.

Put simply, the term greenwashing is levelled at claims seen to overstate the positive environmental impact of a business or product. The word earned its place in the Oxford English Dictionary in 1999 and is now fully established in our common parlance.

Why is it happening?

Ambitious net zero commitments have been set by national and international governments with the expectation companies will both agree and achieve their own. This, combined with increased consumer awareness, has resulted in a focus on sustainability like never before. It’s no surprise, we’re in a climate crisis.

Research shows companies feel they gain brand recognition and reputation from having ambitions in this area, and environmentally aware and concerned consumers say they’ll pay more for products from companies they see as ethical. Ultimately, being green has the potential to drive profitability.

But while environmental sustainability has come to dominate the corporate agenda in UK companies, it is still not an area of expertise for many. Although critics will say companies know exactly what they are doing, in our experience as communications experts we do see clients struggle to understand or recognise the nuance and potential gravity of ‘green’ claims.

Is it legal?

The criticisms remind me of those levelled at food companies using nutritional attributes as the basis to promote products. But unlike nutritional claims, until recently there has been little legislation around environment-based statements aside from fair trading laws and advertising standards.

This has now changed. In May 2024, the Digital Markets, Competition and Consumers Act (DMCC Act) became law giving the Competition and Markets Authority (CMA) greater enforcement powers and the ability to impose hefty fines. The non-compliance stakes have been raised significantly, with fines of up to £300,000 or 10% of global turnover possible (whichever is greater), let alone the potential reputational damage resulting from being prosecuted.

The Green Claims Code

The CMA’s yardstick remains its Green Claims Code, first published in 2021 to combat greenwashing, protect UK consumers and help businesses avoid making misleading green claims. It largely reiterates existing laws but with an emphasis on claims relating to the environment, the essence of it being around accuracy and transparency, with adequate substantiation.

The Code is based on six principles, requiring claims to:

Be truthful and accurate
Be clear and unambiguous
Be fair and meaningful
Be substantiated
Not omit or hide important relevant information
Consider the full life cycle of the product or service (creation to disposal)

It has already been used successfully against UK food companies and the new DMCC Act further strengthens the CMA’s position. But it also helps companies understand their obligations and provides a tool for assessing sustainability claims and commitments.

What can you do to avoid greenwashing?

The speed and impact of climate change mean corporate efforts to mitigate its effects remain paramount. But the way companies communicate this vital work is now under greater scrutiny.

With the new DMCC Act coming into effect, this is the time to take a closer look at what you’re saying, why you’re saying it and how you can show it’s true. And it’s not just the words, don’t forget the imagery, colours and logos you use - they can all be deemed misleading in the eyes of the law.

By communicating clearly and accurately, with data to underpin every statement made, let’s render the term greenwashing obsolete and create an alternative word to encapsulate the food industry’s unparalleled contribution to a positive future.

And, finally...

2024 ASA guidelines on regenerative farming

Farming based on regenerative principles is gaining momentum, making ‘regen’ the 2025 agricultural buzzword. But, without a legal or agreed definition, its use still runs the gauntlet of criticism.

The guidance issued by the Advertising Standards Authority in November 2024 was therefore welcomed. Like the Green Claims Code, it offers those looking to promote the laudable efforts of many UK farmers to remain custodians of their land while producing our food the direction to communicate with ‘confidence’.

The guidance follows similar principles to those of the Green Claims Code aimed at discouraging the temptation to over-claim, based on the premise consumer understanding of regenerative farming is low:

Avoid cherry-picking or tokenism: not exaggerating the extent or nature of regenerative practices being undertaken
Avoid exaggerating environmental or animal welfare-related benefits: similar to the above with a requirement to consider the whole life cycle of a product
Avoid absolute claims: guarantees of outcomes need to be very highly qualified or substantiated
Avoid misleading comparisons with other farming methods: regenerative farming principles are different to those underpinning organic methods so muddling the two can mislead
Ensure transparency with clarity around terminology and statistics: consider the consumer perception and understanding of the claim

Find out more about the ASA guidelines for regenerative farming here