The environmental impact of purchases is increasingly at the top of UK buyers’ minds. More than a third are regularly choosing eco-friendly products, with 64% willing to pay up to 10% more for sustainably-packaged food and drink.
This shift in priorities means more businesses are putting their sustainability credentials at the forefront of their messaging. However, 33% of customers are sceptical about these claims, with 54% saying they would stop buying from companies that make misleading environmental assertions.
To protect buyers from ‘greenwashing’ and ensure brands are accurate about their ESG credentials, the Competition and Markets Authority (CMA) established the Green Claims Code.
So if you’re going to do any green marketing campaigns, you need to understand the code and how to follow it. Here’s our advice.
The Green Claims code is a set of requirements brands need to follow when making any sustainability or environmental claims in their marketing or advertising. Brought into effect by the CMA in September 2021, it applies to any company that is promoting or supplying products or services to UK customers, including wholesalers and manufacturers. The alternative applied in the EU is the Green Claims Directive.
The code is designed to protect UK buyers from being misled by inaccurate environmental claims. This could include brands incorrectly stating that their products or services are less damaging to nature than previous models or competitor goods, or statements that they have no or a positive impact on the planet.
There are six key principles which businesses must test their environmental claims against.
Any statements or implications made about the environmental impact of products or services can’t be exaggerated or untrue. Claims can’t be partly correct or have unknown conditions. Otherwise, brands could risk giving buyers an incorrect impression of a product or service’s sustainability credentials.
Examples could include a brand shouting about the positive environmental impact of a product’s features when they are actually essential or standard. Similarly, if a business overemphasises a negative comparison between a competitor’s service to its own, then this will be considered inaccurate.
Creating specific and easy-to-understand claims is essential to making sure customers get the full message. Labelling, clear explanations or full terms and conditions that are linked to via a QR code or URL are helpful ways to avoid ambiguity.
Avoiding using general terms such as eco-friendly, green or sustainable without justification or specific evidence is also essential.
All customers have to be able to make a fully informed choice. This means all information about a product or service, and its environmental impact, must be available for them to consider. You must show buyers the full picture, even if it’s some press coverage or research you’d rather not publicise.
Getting third-party certifications or endorsements can help reinforce your environmental credentials. When initiative logos are shared or printed on a label, they can also act as a recognisable, trustworthy short-hand for customers looking for sustainable products or services.
Any services or products should only be compared to like-for-like offerings. For example, pastry-based foods shouldn’t have their credentials tested against data about drinks products.
Plus, any comparisons that are made must be backed up by clear evidence or calculations. This proof should also be fully and transparently referenced to, with relevant data or information being updated as necessary.
Brands can’t just make a claim about one aspect of their product or service. They have to consider its wholesale environmental impact. For example, from the sustainability of materials or components that make up a design to the way goods are disposed of at the end of their useful life.
It might not be practical to share the environmental information about every aspect of your product or service in each piece of marketing. However, having a central place where customers can access these details which is clearly signposted ensures full transparency.
All claims should be backed up by robust, credible and up-to-date evidence. Environmentally-conscious businesses should have an easily-accessible source of reputable data. This means they always have the latest facts and figures on hand to share with customers.
In instances where the data changes and a claim can’t be substantiated, it has to be withdrawn. If these can be verified by an independent, external partner, this will enhance the credibility of this information and give customers confidence in your claims.
The Green Claims Code is enforced through consumer protections set out in the Unfair Trading Regulations 2008. This gives the CMA powers to impose sanctions on companies that violate the code. This includes the ability to fine businesses as much as 10% of their annual global turnover.
Greenwashing investigations can also cause significant reputational damage. With consumers likely to pull away from businesses that make misleading claims, not following the code could have a long-term effect on profits too.
When you’re making environmental claims in your business marketing, make sure that:
This won’t just help your green marketing fall within the terms of the code, but also ensure it’s effectively targeting and reassuring your customers too.
If you need advice on how to develop a green marketing strategy that works, our team can help. Get in touch to find out about how we can develop communications that meet the code and draw in customers.