"People who want to ‘buy green’ should be able to do so confident that they aren’t being misled. Eco-friendly and sustainable products can play a role in tackling climate change, but only if they are genuine."
That was the warning from the CMA’s interim chief executive Sarah Cardell in 2022, when the organisation announced it was launched an investigation into green claims made by ASOS, Boohoo and Asda, as part of a wider review of the fashion sector.
Since then, the three companies have signed a pledge to make only ‘clear and accurate’ claims related to the sustainability of their clothing ranges.
Speaking at Source Fashion in London, UK last week, CMA’s assistant director of fashion retail Mike Coates told delegates that the organisation had chosen the fashion sector for this increased focus due to the volume of claims made in recent years.
However, there is a wider investigation into other industries ongoing at the CMA. Coates said the issue of greenwashing has been a “key priority” for the CMA for several years and is likely to remain a focus in the coming years.
How can companies avoid greenwashing?
The CMA’s letter to the industry draws attention to the organisation’s Green Claims Code, which states that fashion companies must follow rules when making environmental claims:
- Claims must be truthful and accurate;
- Claims must be clear and unambiguous;
- Claims must not omit or hide important information;
- Comparisons must be fair and meaningful;
- Claims must be substantiated;
- Claims must consider the full life cycle of the product or service.
Coates was keen to stress that there are not any terms that have been banned, the guidance aims to provide broad principles rather than specific language to be used around green claims.
How does this work in practice?
Coates said one common concern was around claims that do not consider the whole lifecycle of a product. “You can’t just cherry pick one element of a product,” he explained.
The CMA’s guidance uses the example of a pair of jeans labelled as ‘organic,’ while just 35% of the cotton used to make them is organic. The guidance says this would “almost certainly” be seen as misleading as most consumers would understand the term as referring to the entirety of the product.
A fashion brand or retailer could avoid this issue by being more specific in their claim: “These jeans are manufactured from 35% organic cotton.” The CMA said the other materials used should also be clearly listed to avoid any confusion.
Coates said there is also a common issue around a lack of data. “We see so many claims where the evidence is just not there.”
How does the CMA’s guidance fit alongside EU greenwashing legislation?
Coates said the CMA was trying to avoid making the UK a more difficult place to do business and is therefore making sure its guidance is not in conflict with similar legislation in other markets.
The CMA has joined a coalition of similar organisations across the world aiming to align legislation and enforcement.
Coates said the CMA is also working with the Advertising Standards Agency (ASA) to try to ensure that their guidance is not in conflict with rules on advertising green claims.
Are there any restrictions on collaboration?
Coates said the CMA recognises that the step changes required to respond to the climate crisis are likely to require collaboration between competitors on a scale not seen before.
In response, the CMA has set out a guide which outlines the current restrictions. However, the organisation is also open to allowing some exemptions where required and is offering advice to companies looking to collaborate with competitors.
Overall, the CMA is keen to ensure that companies that are doing the right thing are not penalised, while those that do make misleading claims are highlighted.
