Green/sustainability claims and advertising and consumer greenwashing

In the era of increased environmental awareness, the spotlight on green claims has never been more intense. As consumers are concerned about global heating and ecological sustainability, they are scrutinizing products like never before, seeking eco-friendly options that align with their values. In response, businesses have responded to this concern and consumers’ purchase interest, with brand-owners increasingly highlighting the benign or even beneficial effects their products and services have on the environment fostering a surge in green marketing initiatives.

Yet, amidst this push for sustainability, the risk of being accused of greenwashing is omnipresent. As environmental characteristics of products and services are highly technical and the understanding of the various concepts involved is continuously changing, environmental/sustainability claims raise a significant risk of confusing and misleading consumers. Many companies have fallen foul of advertising standards in this area recently. Given the high sensitivity of environmental claims and the reputational damage that can result from allegations of greenwashing, it is particularly important to make sure environmental claims are compliant.

By ensuring truthful, accurate and unambiguous information is always given to the consumers, companies can avoid the risks and build a reputation for authenticity in their sustainability advertising and communications. CMS guides companies through the maze of regulations and case law and advise on the steps a company can take to ensure their advertising is not only compliant but also authentic and impactful.

The priority questions we address are:

• Which green claims are likely to raise litigation or regulatory enforcement risks?
• What can businesses do to mitigate these risks?
• What are the likely claims/enforcement that could arise?
• Who is likely to make a claim?
• What are the risks in the event of a violation or a complaint? 
• What future regulatory measures are expected and what companies have to do now to be prepared?

We offer various solutions to help you be compliant and avoid accusations of greenwashing:

• Sustainability claim checks including regulatory risk matrix as well as litigation: evaluating the planned claims and mapping their risk as well as developing compliant marketing strategies and claims custom-tailored to your business's unique profile;
• Sustainability-related litigation: providing comprehensive support in legal disputes in the area of advertising with environmental claims;
• Training sessions: to empower your legal, compliance and sustainability as well as advertising teams with in-depth knowledge of sustainability risks and mitigation strategies; and
• Board packs: to equip your directors/board members with actionable insights into greenwashing risks, ensuring they steer the company toward sustainable strategies with confidence and integrity.  

For an initial conversation on how we can support you on greenwashing risk, please reach out to the lawyers listed on this page or to your usual CMS contact.