Green Claims: Credibility in the age of sustainability

As consumers, investors, and regulators place increasing emphasis on environmental responsibility, Green Claims – or Environmental Claims – have become a valuable tool for businesses to highlight their sustainability efforts. However, this visibility also brings greater responsibility and scrutiny. Companies are facing growing criticism and regulatory attention for making vague, exaggerated, or unverified environmental claims, leading to heightened risk of investigations and public backlash.

As sustainability continues to climb the corporate agenda, more businesses are making Green Claims to highlight their environmental benefits. Yet, with great visibility comes greater scrutiny.

Regulators across the UK and Europe are increasingly targeting misleading or vague environmental marketing, making it more important than ever for businesses to get it right. The consequences of missteps can be severe, ranging from reputational damage to legal penalties and loss of consumer trust.

What are Green Claims?

In today’s sustainability-conscious marketplace, companies face growing pressure to demonstrate their environmental responsibility. In response, many are using Green Claims – statements that communicate the positive environmental attributes of a product, service, or business practice – as a strategic marketing tool.

However, such claims also bring heightened expectations for transparency and accuracy. When used improperly, they can open the door to accusations of greenwashing, regulatory scrutiny, and reputational harm.

Green Claims – also known as Environmental Claims – include any message, label, or symbol that implies a product or company is environmentally friendly or has a reduced impact on the planet. Common examples include:

• “Made with 100% recycled materials”
• “Carbon neutral production”
• “Sustainably sourced”
• “Plastic-free packaging”

These claims can significantly influence consumer purchasing decisions and shape brand reputation. But when they are vague, unverified, or misleading, they can undermine trust and expose businesses to serious risk.

The business consequences of misleading claims: Boohoo and other global cases

In 2022, the UK’s Competition and Markets Authority (CMA) launched an official investigation into Boohoo’s “Ready for the Future” clothing line. The fast fashion retailer advertised products as sustainable without clearly defining what “sustainable” meant or providing evidence to support the claim.

The CMA identified several key issues:

• Vague language: Words like “sustainable” and “eco-friendly” were used without clear definitions or context.
• Lack of evidence: There was no supporting data on material sourcing or the actual environmental impact.
• Misleading impressions: Many items were labelled as “sustainable” despite only a small number meeting the suggested criteria.

The fallout included regulatory scrutiny, public backlash, and a stark reminder to other businesses – credibility in Green Claims hinges on transparency, evidence, and clarity.

Similar action was taken in the Netherlands, where authorities challenged H&M and Decathlon in 2022 over the use of unverified eco-labels. Both companies were required to revise their marketing practices and makes financial contributions to sustainability initiatives in an effort to repair reputational damage.

A more high-profile case occurred in 2015 with Volkswagen’s “Dieselgate” scandal, where the company faced global legal action for misleading emissions. The consequences included criminal charges for executives, civil litigation, and significant corporate fines. While not a traditional marketing claim, the case underscores the severe legal and reputational risks tied to false or deceptive environmental communications.

What businesses must do now: Laying the foundations for regulatory compliance

With the introduction of the EU Green Claims Directive, the UK’s Green Claims Code, and increasing consumer scepticism, it is essential that businesses ensure their Environmental Claims are accurate, transparent, and supported by verifiable evidence.

The EU Green Claims Directive, proposed by the European Commission (EC) in March 2023, aims to combat greenwashing by establishing clear, enforceable rules for how environmental claims are presented across the EU. Under this Directive, any voluntary Green Claim must:

• Be grounded in robust scientific evidence.
• Demonstrate its environmental impact through recognised methodologies, such as a Life Cycle Assessment (LCA).
• Be independently verified before being publicly communicated.

Moreover, claims must be specific and not vague or misleading. Generic terms like “eco-friendly” or “carbon neutral” will no longer be acceptable without clear definitions and measurable criteria. Once adopted by EU member states, this directive will significantly impact any company marketing or selling products in the EU.

Meanwhile, in the UK, the Green Claims Code, developed by the Competition and Markets Authority (CMA), provides practical guidance for businesses. While not a standalone law, it is rooted in existing consumer protection legislation and outlines six key principles for making Green Claims. These include ensuring that claims are:

• Truthful and accurate.
• Clear and unambiguous.
• Not misleading by omission.
• Substantiated with credible evidence.

To underscore its commitment to enforcement, the CMA has already launched investigations into sectors, such as fashion, food, and consumer goods.

Together, these initiatives mark a wider shift in expectations. Consumers, regulators, and investors increasingly demand environmental accountability and integrity. Companies that fail to align with these standards risk not only reputational damage but also potential legal action and loss of market competitiveness.

Ensuring credible Green Claims: The role of independent verification

As businesses face growing pressure to demonstrate environmental responsibility, the importance of credible, verifiable Green Claims has never been greater. Independent third-party verification is increasingly recognised as a critical step in reducing greenwashing risks, complying with evolving regulations, and building trust with consumers, regulators and investors.

Organisations like DNV, with long-standing expertise in sustainability assurance, support companies in navigating this complex landscape. Services, such as Life Cycle Assessments (LCAs), regulatory interpretation, and third-party verification, can help businesses ensure that their Environmental Claims are grounded in robust, science-based evidence.

Verification bodies contribute by:

• Helping businesses interpret and align with frameworks like the EU Green Claims Directive or the UK’s Green Claims Code.
• Identifying potential risks and gaps in claims.
• Substantiating claims through technical assessment of factors, such as carbon emissions, water usage, materials sourcing, or product end-of-life impacts.

Beyond compliance, independent assurance helps companies communicate their environmental efforts more transparently and effectively – whether through product labelling, ESG disclosures, or investor engagement – while reinforcing brand credibility.

For organisations committed to responsible, future-ready business practices, working with a credible verification partner provides both confidence and clarity in a rapidly evolving regulatory environment.

6/9/2025 9:12:00 AM