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Understanding The Green Claims Code
Greenwashing is a big issue, and Governments around the world are getting tough on businesses who greenwash. In the UK specifically, the Green Claims Code has been released by the Competition and Markets Authority. Brand and business consultant Bukola Dagiloke explains the Green Claims Code and the implications to your business.
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Bukola Dagiloke
It is said that 60% of fashion brands are greenwashing when it comes to sustainability claims. This is a huge problem for the industry which needs to be addressed on a global scale and the UK are making steps to tackle this momentous issue. As of January 2022 the Green Claims legislation will be in full effect. The Competition & Markets Authority (CMA) has announced that it will begin a review of misleading green claims in January 2022 for all businesses operating in the UK. This will have world wide implications.
Why do we need a green claims code?
In an investigation in 2020, the CMA discovered that up to 40% of green claims made were misleading. The Green Claims Code is aimed at protecting consumers from misleading environmental claims amidst concerns over 'greenwashing'.
What is greenwashing and why is it so bad for business?
Greenwashing refers to overstated, unsubstantiated green credentials of a product or service. The term is used to describe the use of marketing to portray an organization’s products, activities, or policies as environmentally friendly when they are not. They can cause confusion for consumers, as well as undermine trust in truly sustainable businesses.
How can you tell when a fashion brand is greenwashing?
It’s important to look a little further to see when a brand might be greenwashing.
Impressive sounding initiatives to reduce carbon emissions
‘Eco-friendly packaging’ and not much else
Misleading claims and targets
Other things to look out for include ‘Sustainable Ranges’ offered by large companies. Be cautious of large brands using words like, organic, eco-friendly and sustainably sourced. Truly sustainable and ethical brands want to provide full disclosure on the great ways they are making their products and this is the transparency we need industry wide to combat greenwashing.
Why is legislation needed to enforce industry wide change on issues such as greenwashing?
Since greenwashing is unfortunately so common, with many companies keen to cash in on consumers' growing interest in sustainability, it is important for governments to step in and regulate the communications around sustainability claims. Buzzwords, even colours, images and icons can be used to greenwash and can mislead consumers, leading to misplaced trust. As fake news undermines trust in the media, so too does greenwashing undermine trust in sustainability claims as a whole. It’s important to be conscious that your claims may be greenwashing if they are vague and unsubstantiated too. Businesses can now be subject to fines without an upper limit and potentially a custodial sentence of up to two years. The CMA’s approach gives businesses an opportunity to comply before taking enforcement action, this affects both small business and large corporations.
What is a green claim?
Green claims are genuine when they properly describe the impact of a product, brand, business or service, with evidence to back it up. Claims can be misleading if any information is untrue or hidden, if information is misrepresented or if it is taken out of context. When making green claims, businesses must comply with consumer protection law. Before making a green claim, businesses should understand how their product, brand or business has an impact – both positively and negatively – on the environment for its whole life cycle.
Starting points to consider:
Do you have a clear idea of the main environmental impacts of your product, service or organisation?
Is the claim a truthful and accurate representation of the scale of the environmental benefit or what is likely to happen in practice?
Is the evidence to substantiate a claim clear and robust, or is there uncertainty?
What are the advantages for sustainable brands?
The new legislation in the UK and the Green Claims Code is a great opportunity for sustainable businesses to showcase and substantiate their sustainability efforts and if you are just getting started with sustainability these are great guidelines to build real trust in your brand with consumers who are on the lookout for truly sustainable businesses.
For a deeper dive into the CMA’s Green Claims Code, Bukola Dagiloke hosts the Green Claims Code Workshop exclusively for The WIP. In this 15 minute video, Bukola breaks down the jargon and takes you point by point through the code to ensure you are complying.
Bukola Dagiloke
Bukola is a brand and business consultant, specialising in sustainable fashion. Through her 15 years experience working as an entrepreneur, she now dedicates her business, Global Fashion Marketplace, to supporting sustainable business development.
You can find Bukola via her website Global Fashion Marketplace, or on Instagram @global_fashion_marketplace. If you wish to work with Bukola, please email her directly at info@globalfashionmarketplace.co.uk (just tell her The WIP sent you.)
