Regulating greenwashing: Cutting through the “sustainababble”
The UK and EU are cracking down on green claims, introducing tighter scrutiny in the advertising sector.
What does it mean to be “carbon neutral”? Or "nature positive"? Or “good for the planet”? That’s exactly what regulators are trying to find out – and standardise. In the UK, the Advertising Standards Authority (ASA) has started taking action against companies making bold or vague environmental claims without backing them up. Shell, HSBC, and even plant-milk brand Alpro are some of the companies that have fallen foul of the ASA’s recent rules and had their ads banned. In the EU, the European Commission has laid out a Green Claims Directive, which requires companies to substantiate their environmental claims with scientific evidence and have them verified by third parties. Further, companies must ensure that this information is readily accessible, e.g. through QR codes on their products.
This tougher stance on green claims is also making waves in legal proceedings. Earlier this month, a landmark greenwashing lawsuit against airline company KLM was allowed to proceed to a full hearing by a Dutch court. The suit was brought by environmental group Fossielvrij Netherlands and argues that KLM's carbon offset marketing misleads consumers into thinking that flying can be sustainable (it cannot).
What do these regulations mean for your sector? How can we further improve the transparency and accountability of environmental claims? Join the conversation and connect with other public servants on Apolitical.