With an increasing number of anti-greenwashing regulations being negotiated across the UK and the EU, here’s what brands need to know

According to 2023 data from Kantar, 52% of people globally say they have seen, or heard, false or misleading information about sustainable actions taken by brands – reinforcing that consumer trust is at stake thanks to greenwashing. 

To tackle this, last year the European Union introduced the Empowering Consumers Directive. The Directive made it so that EU businesses will be obligated to be transparent and honest in the environmental claims that they made.

This followed other standout EU environmental legislation such as the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). 

Finally, the EU’s Green Claims Directive is expected to be finalised by the end of 2025. This criteria will ensure that ‘environmental labels and claims are credible and trustworthy will allow consumers to make better-informed purchasing decisions.’

But, what does this mean for brands in the UK? 

Firstly, EU directives are likely to influence policymakers in the UK to create similar rules on greenwashing. This is why it’s so important that businesses pay attention to legislation updates as well as consumer feeling.

What’s more, British brands are and will continue to trade with the continent. Thus, businesses must be aware of the messaging surrounding green claims in European countries. 

How can brands ensure they aren’t greenwashing?

In an interview with Edie, Advertising Standards Authority (ASA) CEO Guy Parker identified his ‘golden rules’ for avoiding greenwashing: 

• Avoid absolute green claims;
• Focus on near-term, achievable, progress rather than long-term or aspirational goals;
• Be “humble” and transparent about challenges, paving the way for more credible ads.  

Each of these principles, in different ways, seek to ensure that businesses’ environmental claims reflect the reality of the way their company works and the goods that they sell.

What are the upcoming UK legislative events that businesses should be aware of?

From April 2025, the Competition and Markets Authority (CMA) will be able to impose fines of up to 10% of a businesses’ global turnover for breaches of consumer law. This is due to provisions made under the 2024 Digital Markets, Competition and Consumers (DMCC) Act.

This follows the Financial Conduct Authority (FCA) introduction of specific anti-greenwashing rules and guidance, following greenwashing backlash headed by the Advertising Standards Agency (ASA) last year. 

These moves highlight the desire from UK consumers to have access to honest and reliable information on the environmental claims of the products that they were buying.

According to the British Beauty Council’s Courage to Change report, 90% of Gen Z consumers expect brands to do more to combat climate change, and 39% of UK adults think that brands should produce more environmentally sustainable products.

You can read the Courage to Change report here.