The Green Claims Code: What You Need To Know Now
The start of the new year brings a welcome Government crackdown on greenwashing - but even sustainable businesses may need to do some work to make sure they are operating within the new guidelines.
The UK Competitions & Markets Authority found that 40% of 'green' claims made online could be misleading consumers. In response, they released the Green Claims Code - guidance to help companies of all sizes avoid greenwashing. From the beginning of 2022, they will be doing an extensive review to start enforcing it.
If a business doesn’t comply with consumer protection law, the CMA and other bodies – such as Trading Standards Services or sector regulators – may bring court proceedings. The Advertising Standards Authority (ASA) can also take action for misleading green claims which appear in advertising.
What does the Green Claims Code cover?
When making a green claim, a business should be able to answer ‘yes’ or agree to each of the following statements:
The claim is accurate and clear for all to understand.
There’s up-to-date, credible evidence to show that the green claim is true.
The claim clearly tells the whole story of a product or service; or relates to one part of the product or service without misleading. people about the other parts or the overall impact on the environment.
The claim doesn’t contain partially correct or incorrect aspects or conditions that apply.
Where general claims (eco-friendly, green or sustainable for example) are being made, the claim reflects the whole life cycle of the brand, product, business or service and is justified by the evidence.
If conditions (or caveats) apply to the claim, they’re clearly set out and can be understood by all. E.g. For example, businesses must not claim, or otherwise give the impression, that a product is ‘recyclable’ if only parts of it are and others are not, preventing recycling.
The claim won’t mislead customers or other suppliers.
The claim doesn’t exaggerate its positive environmental impact, or contain anything untrue – whether clearly stated or implied.
Durability or disposability information is clearly explained and labeled.
The claim doesn’t miss out or hide information about the environmental impact that people need to make informed choices.
Information that really can’t fit into the claim can be easily accessed by customers in another way (QR code, website, etc.).
Features or benefits that are necessary standard features or legal requirements of that product or service type, aren’t claimed as environmental benefits.
If a comparison is being used, the basis of it is fair and accurate, and is clear for all to understand.
This means that sweeping 'green' claims or statements will no longer stand up under the Green Claims Code; e.g.
“Broader, more general or absolute claims are much more likely to be inaccurate and to mislead.
Terms like ‘green’, ‘sustainable’ or ‘eco-friendly,’ especially if used without explanation, are likely to be seen as suggesting that a product, service, process, brand or business as a whole has a positive environmental impact, or at least no adverse impact. Unless a business can prove that, it risks falling short of its legal obligations."
Case study 1: Restaurant Example
This is a hypothetical example.
A restaurant providing a takeaway service has recently updated its branding with the slogan ‘working to reduce waste’. This is based on the fact that it has switched takeaway food containers from plastic to paper as well as pledging to cut food waste by 50% by the end of the year.
The paper packaging shows a commonly recognised symbol for recycling. The company provides a QR code on the takeaway containers given to customers which provides detailed information explaining how the paper used in the packaging meets a specific environmental standard. This includes how the paper has been sourced.
However, if hypothetically, at the time of the claim, UK law prohibited companies from supplying certain single-use plastic takeaway containers and/or implements, then focusing marketing on switching from plastic to paper containers may lead a consumer to believe that this is not necessary standard practice - and that the restaurant is providing an environmental benefit over a competitor. This is contrary to Principles (1) and (4) listed above.
It also turns out that the other materials used in the lining of the containers means the container cannot be recycled in the current UK recycling infrastructure. This is contrary to Principle (1).
The claim to reduce food waste by the end of the year is an aspirational claim with no clear, overall strategy in place setting out how the goal will be achieved. In addition, the restaurant company has gathered no data to assess whether it is on target to meet this goal. This is contrary to Principle (2) listed above.
While the restaurant company provides certified evidence to support its claim that the paper used in their packaging has been sourced responsibly, focusing on this element gives the impression that the packaging’s overall impact is environmentally friendly. It overlooks the full life cycle of the restaurant’s products and processes. Consumers are liable to believe the packaging can in fact be recycled, when in practice it cannot. This is contrary to Principles (1) and (5) listed above.
The claim ‘working to reduce waste’ would be less likely to mislead if the restaurant company has a clear strategy setting out how it plans to reduce waste and this is made up of specific and measurable targets and deadlines. It could provide updates to consumers on steps taken to meet the targets. This information should be clearly and easily available and accessible to consumers.
Example 2
A disposable cup is marked as ‘compostable’. No further information is provided. The cup will not compost in a home compost bin. An industrial composter is required, so consumers can only compost the cup if their local authority collects compostable waste for industrial composting. The claim is likely to be misleading as it does not specify the circumstances under which the product is compostable and the action the consumer needs to take.
The ‘compostable’ claim is less likely to be misleading if any caveats regarding how and where the cup can be composted are expressly clarified on it.
Example 3
A product is labeled ‘recyclable’ without further explanation. The claim doesn’t make clear if this relates to the whole product or not, or just its packaging. As the claim actually relates solely to the packaging (a minor element of the product), and the remainder of the product is not recyclable, the claim is likely to mislead consumers into thinking that the whole product can be recycled.
The claim is less likely to mislead if it is made clear that it is only the packaging that is recyclable.
Example 4
A shampoo bar named ‘eco shampoo’ is packaged in a cardboard box with green rainforest imagery and inner non-recyclable plastic film. The ‘eco’ claim is based on the product being more compact and using less plastic packaging than traditional shampoo. However, some of the raw materials come from the Amazon rainforest and have been shipped via freight to Europe, where the bar has been manufactured in a large factory. The final product has then been shipped to the UK for final packaging. The claim ‘eco shampoo’ is misleading as it creates the overall impression that the product has a positive or no negative environmental impact, despite the adverse effects of major elements of the product life cycle.
If the company wants to make a claim about the environment, it may be able to make a more specific claim about using less packaging. However, it would need to avoid giving a misleading impression about the overall environmental impact of the product.
The Good News
Whilst conducting an audit of your brand’s sustainability claims (think about all of the info on your website, social media, newsletters, menus, product descriptions) may seem an inconvenient way to start the year, the good news is that competitor brands and businesses no longer have the freedom to make unsubstantiated claims about their green credentials.
This leaves more space for the truly sustainable pioneers to shout about their efforts, and really be heard.
It goes without saying that if you need any help with auditing your existing internal and external communications to meet the Green Claims Code, I can help - just drop me a line here..
In the meantime, you can find more information at www.gov.uk.
