In today’s climate-conscious marketplace, businesses face pressure to demonstrate environmental responsibility. However, the effort to appear environmentally friendly has led many companies into the problematic territory of greenwashing in making misleading or exaggerated claims about their environmental credentials. As regulatory bodies increase enforcement and consumers become increasingly discerning, the importance of authentic communication around sustainability continues to grow.
The Current State of Greenwashing
The evidence reveals a concerning trend. In 2023, more than half of consumers encountered misleading sustainability claims by brands. This represents a fundamental breach of trust between companies and their customers.
The emergence of the conscious consumer has transformed the marketplace. Today’s buyers are unwilling to overlook corporate behaviour that negatively impacts the planet. Instead, they deliberately use their purchasing power to support brands that demonstrate genuine commitment to environmental and social responsibility.
This shift has made greenwashing increasingly risky. Consumers have developed the ability to identify signs of environmental misdirection, and they readily challenge brands that fail to substantiate their claims. Social media amplifies these voices, transforming individual complaints into potential reputation crises that can damage brand perception.
Regulatory Frameworks taking Shape
The landscape of sustainability regulation continues to evolve. The European Union’s forthcoming greenwashing legislation will prohibit misleading environmental claims and increase company accountability for their labelling. While this comprehensive framework will not be implemented until early 2026, it indicates a definitive shift towards stricter enforcement.
Similar developments are advancing globally. In the United States, the Federal Trade Commission’s Green Guides provide structures for environmental claims, while the UK has introduced the Green Claims Code to direct businesses making environmental assertions. Notably, a rule, which became effective in May 2024 prevents UK financial firms from making misleading claims, addressing a sector where greenwashing has been particularly prevalent.
Recent Notable Cases and their Outcomes
H&M’s “Conscious Collection” Investigation
Swedish fashion retailer H&M faced scrutiny over its “Conscious Collection,” which the company marketed as environmentally friendly. The Netherlands Authority for Consumers and Markets (ACM) investigated the claims and found them to be insufficiently substantiated.
Fact check: H&M was not fined in this particular case. Rather than imposing financial penalties, the Dutch consumer authority required H&M to remove misleading sustainability labels and modify its marketing materials. The company agreed to improve the information available to consumers about the sustainability aspects of its products.
H&M’s response involved acknowledging the need for greater transparency while maintaining that their sustainability efforts were genuine. They subsequently revised their communication approach, demonstrating how environmental initiatives require careful contextualisation.
HSBC’s Climate Advertisements Ruling
In 2022, HSBC received a formal reprimand from the UK’s Advertising Standards Authority for advertisements that highlighted the bank’s climate initiatives while omitting information about its continued financing of fossil fuel companies. The ASA ruled that the ads were “misleading” as they presented an incomplete picture of the bank’s environmental impact.
HSBC responded by withdrawing the advertisements and committing to more comprehensive climate disclosures. The bank subsequently announced stricter policies regarding financing for fossil fuel projects, showing how regulatory intervention can influence corporate practices.
Shell’s “Carbon Neutral” Claims Challenge
Energy company Shell faced legal challenges regarding its “carbon neutral” fuel claims. In the Netherlands, a court determined that Shell’s advertisements suggesting customers could offset their emissions by paying a small fee lacked sufficient evidence. The company was directed to substantiate such claims with clear evidence or discontinue them.
Shell’s response included refining its messaging around carbon neutrality, providing more transparency about the limitations and processes of carbon offsetting. This case emphasises the necessity of precise language and evidence when making environmental claims.
Oatly’s Climate Impact Advertising
Plant-based milk producer Oatly faced criticism when the UK’s Advertising Standards Authority ruled that some of its climate impact claims were misleading. The company’s advertisements suggested that switching to Oatly products would result in substantial reductions in greenhouse gas emissions, but the ASA found these claims inadequately supported.
Oatly revised its marketing materials and committed to more robust scientific substantiation for future claims. Despite this setback, the company continued to focus on its sustainability mission, showing resilience when facing regulatory examination.
Practical Guidance for Marketing and Communications Professionals
For marketers and communications professionals, these cases provide valuable lessons. Here are detailed, actionable recommendations for authentic sustainability communication:
Comply with Regional Regulatory Frameworks
Different regions have specific requirements for environmental claims. Marketers should consult:
- UK: The Competition and Markets Authority’s Green Claims Code (available at gov.uk/government/publications/green-claims-code)
- EU: European Commission guidelines on unfair commercial practices and upcoming Green Claims Directive
- US: Federal Trade Commission’s Green Guides (available at ftc.gov/green-guides)
Maintaining a compliance checklist specific to each market where claims will be made helps ensure all regional requirements are addressed.
Implement Third-Party Verification
External validation adds credibility to environmental claims. Consider:
- Engaging recognised certification bodies like B Corp, Cradle to Cradle, or region-specific environmental certification programmes
- Commissioning independent environmental impact assessments from accredited organisations
- Participating in industry-specific sustainability frameworks with external auditing components
Document all verification processes and make summaries available for stakeholders.
Create an Internal Claims Review Process
Establish a formal review procedure for all sustainability communications:
- Form a cross-functional team including legal, sustainability, and marketing representatives
- Develop a standardised questionnaire to assess claims against established guidelines
- Institute a mandatory review period for all sustainability claims before publication
- Document all decisions and justifications for future reference
This systematic approach helps identify potential issues before claims become public.
Use Precise, Measurable Language
Generic environmental terms often trigger regulatory scrutiny. Instead:
- Replace “environmentally friendly” with specific impact reductions (e.g., “manufactured using 30% less water than conventional processes”)
- Substitute “sustainable” with clear references to recognised standards (e.g., “cotton sourced according to Better Cotton Initiative standards”)
- Avoid comparative claims without a clear baseline (e.g., “greener” or “more eco-friendly”)
Maintaining a glossary of approved terminology ensures consistency across all communications.
Contextualise Environmental Achievements
Provide complete information about environmental initiatives:
- Clearly state the scope of any claim (what products, services, or operations are covered)
- Include relevant timeframes for achievements and targets
- Acknowledge limitations and areas still requiring improvement
- Present environmental impacts in context of overall business operations
This balanced approach demonstrates genuine commitment to transparency.
Maintain Comprehensive Documentation
Create an evidence repository for all sustainability claims:
- Compile technical reports, test results, and certification documents
- Record methodologies used for environmental calculations
- Preserve supply chain verification records
- Update documentation regularly as processes change
This documentation provides immediate support if claims are questioned.
Develop Crisis Response Protocols
Prepare for potential challenges to environmental claims:
- Create template responses for common questions about sustainability initiatives
- Establish clear lines of responsibility for addressing environmental claim challenges
- Train spokespeople specifically on discussing sustainability topics
- Prepare escalation procedures for regulatory inquiries
Having these protocols in place enables prompt, consistent responses.
Invest in Ongoing Education
Keep marketing and communications teams updated on evolving standards:
- Schedule regular training on environmental marketing regulations
- Subscribe to updates from relevant regulatory bodies
- Participate in industry working groups focused on sustainability communication
- Share learnings from challenges experienced by other companies
This continuous education helps teams stay ahead of changing requirements.
Resources for Verification and Compliance
Marketing professionals should familiarise themselves with these key resources:
- The UK Competition and Markets Authority’s Green Claims Code Checker
- The European Commission’s Unfair Commercial Practices Directive guidance documents
- International Organization for Standardization (ISO) environmental labelling standards
- The World Federation of Advertisers’ guidance on environmental claims
- Industry-specific sustainability reporting frameworks relevant to their sector
Regular consultation with these resources helps ensure compliance with evolving standards.
The Path Forward
As regulations strengthen and consumer awareness increases, the consequences of greenwashing will continue to escalate. For forward-thinking companies, this presents an opportunity rather than a threat. By committing to authentic sustainability communication, businesses can build deeper consumer trust and distinguish themselves in an increasingly competitive marketplace.
The future of sustainability marketing lies not in broad claims but in detailed, verifiable communication about specific environmental impacts and improvement efforts. Companies that embrace this approach will not only avoid regulatory penalties but also build lasting relationships with the growing segment of environmentally conscious consumers.
For marketers and communications professionals, the mandate is clear: sustainability claims must be treated with the same rigour as financial reporting. The era of unsubstantiated environmental claims is ending, and those who fail to adapt risk both regulatory consequences and damage to brand reputation.
Authenticity is not just an ethical consideration, it represents a business necessity. By approaching sustainability communication with accuracy, precision, and transparency, companies can transform environmental responsibility into a genuine competitive advantage.
Join LSPR’s expert-led workshop “Avoiding Greenwashing in Marketing” on April 11th, 2025. Learn how to craft authentic sustainability messaging that builds trust
About LSPR
The London School of Public Relations (LSPR, established in 1992), specialises in transformative professional development, offering intensive CPD-accredited courses that equip leaders with cutting-edge skills in media, communications, and leadership strategies.