What are Green ClaimsMaking Environmental Claims
CMA sets out the dos and don’ts for businesses
The CMA has published its Green Claims Code to help businesses comply with consumer law and has warned that companies must ensure their environmental claims comply by New Year.
Released on 20 September, the Green Claims Code – part of a wider CMA awareness campaign launched the same day ahead of COP26 – focuses on six principles based on existing consumer law.
Firms making green claims “must consider the full life cycle of the product” and “must not omit or hide important information”.
The CMA will carry out a full review of both on and offline misleading green claims – following an initial bedding-in period – at the start of 2022. The CMA says it will prioritise which sectors to review in the coming months based on where consumers are most concerned. Areas highlighted that could fall under this are textiles and fashion, travel and transport, and fast-moving consumer goods (food and beverages, beauty products and cleaning products).
The CMA may also act ahead of formal review where there is clear evidence of consumer law breaches. The CMA says businesses should check their green claims against the Code and seek legal advice if unsure whether their claims comply with the law.
Andrea Coscelli, Chief Executive of the CMA, said: “More people than ever are considering the environmental impact of a product before parting with their hard-earned money.
We’re concerned that too many businesses are falsely taking credit for being green, while genuinely eco-friendly firms don’t get the recognition they deserve.
The Green Claims Code has been written for all businesses – from fashion giants and supermarket chains to local shops. Any business that fails to comply with the law risks damaging its reputation with customers and could face action from the CMA.”
Catalyst Digital Energy is an award-winning energy consultancy with a focus on digital energy services, total energy contract lifecycle management and energy management services. It is revolutionising how businesses manage energy with its unique Energy Spend Management Platform, which is powered by Robotic Process Automation (RPA) EaaSi®.
Catalyst is digitising all aspects of energy, including billing, data, consumption, spend, payments, procurement and emissions reporting. When combined with its fully funded renewable energy solutions, Catalyst offers a unique and powerful approach to managing energy.