Following a market-wide consultation in the summer, the Competition and Markets Authority (CMA) has announced a new “green claims code” aimed at reminding businesses of their obligations and setting our clear guidance to marketeers about what they can and can’t claim in campaigns moving forward.

The CMA has responded to growing concerns amongst consumers about misleading claims, known as greenwashing.

Martyn Eustace, Chairman of Two Sides, a non- profit organisation which promotes the attractiveness and sustainability of print, paper and paper packaging explains what Greenwashing is and the impact it has on the print industry:

“Greenwashing is pervasive and often used in marketing communications to mis-represent products and services as environmentally friendly. For the paper, print and mailing industries involved in the production and mailing of household bills and statements, Greenwashing threatens the loss of £22 million from a market sector estimated to be worth £555 million annually.

“With an increasing desire to save costs, service providers, customer facing organisations and even governmental departments are increasingly focused on switching consumers and citizens away from paper to digital services.

“All too often the encouragement to ‘go digital’ is accompanied by messages attempting to justify these cost-saving initiatives with misleading and unsubstantiated environmental marketing appeals such as “Go Green – Go Paperless” and “Choose e-billing and help save trees”.

“Unfounded Greenwashing messages such as these reach and influence millions of consumers every year. Over the past 10 years, Two Sides has successfully challenged over 750 global organisations; primarily service providers like banks, utilities and telecoms.”

The CMA has told companies they have until the end of the year to make sure their environmental claims comply with consumer law.

At the start of 2022, it will launch a review of green claims, prioritising sectors where customers appear to be most concerned about being misled. In the meantime, where there is evidence of a clear consumer law breach, the CMA may take action before the official review even begins, it warns.

The need for action was highlighted by an investigation led by the regulator last year, which found 40% of green claims made online could be misleading.

Commenting as the CMA announced the code, Greg Hands, minister of state for energy and clean growth, said: “Millions of UK households are rightly choosing to switch to green products as they look to reduce their carbon footprint. But it’s only right that this commitment is backed up by transparent claims from businesses.”

The CMA Green Code’s main principles:

• Be truthful and accurate: businesses must live up to claims they make about their products, services, brands and activities
• Be clear and unambiguous: the meaning a consumer is likely to take from a product’s messaging and its credentials should match
• Do not omit or hide important information: claims must not prevent someone from making an informed choice because of information left out
• Only make fair and meaningful comparisons: any products compared should meet the same needs or be intended for the same purpose
• Consider the full life cycle: when making claims, companies must consider the total impact of a product or service. Claims can be misleading where they don’t reflect the overall impact or where they focus on only one aspect
• Be substantiated: businesses should be able to back up their claims with robust, credible and up-to-date evidence

Print producers can play an active role in helping customers prepare and be aware of this this new legislation by reviewing creative messaging of their customer campaigns and directing customers to the CMA website to find additional information.

For more information on the CMA greenwashing guide, please read ‘CMA puts businesses on notice’.