ACCC Discovers Concerning 'Greenwashing' Claims Online

Published on:
by KnowESG
KnowESG_Greenwashing
Image courtesy of www.lizleanpr.co.uk

After an internet sweep revealed that over 50% of the businesses reviewed made alarming statements about their environmental or sustainability practices, the ACCC will be scrutinising numerous companies for possible 'greenwashing.'

During the internet sweep, 247 businesses were reviewed, of which 57% were identified as having made concerning claims about their environmental credentials. The cosmetic, clothing, and food and drink sectors were among the worst offenders, although other industries also had a significant proportion of concerning claims.

ACCC Deputy Chair Catriona Lowe stated that "Our sweep indicates a significant proportion of businesses are making vague or unclear environmental claims. This warrants further scrutiny, and Consumers are now, more than ever, making purchasing decisions on environmental grounds. Unfortunately, it appears that rather than making legitimate changes to their practices and procedures, some businesses are relying on false or misleading claims. This conduct harms not only consumers but also those businesses taking genuine steps to implement more sustainable practices."

Lowe went on to explain that "Businesses using broad claims like 'environmentally friendly,' 'green,' or 'sustainable' are obliged to back up these claims through reliable scientific reports, transparent supply chain information, reputable third-party certification, or other forms of evidence."

Featured Article: What Are The Main Greenwashing Tactics Companies Use?

The ACCC will be asking businesses to substantiate their claims, and several active investigations are already underway across various sectors for alleged misleading environmental claims.

To improve compliance with the Australian Consumer Law, the ACCC will conduct a range of educational activities with businesses, including updating economy-wide guidance material and targeted guidance for specific sectors. Lowe also encourages businesses to come forward if they become aware they have made false or misleading marketing claims, stating that "businesses who cooperate and advise of any issues with their operations will be considered more favourably than those who wait for the ACCC to unearth these problems."

The ACCC encourages consumers and businesses to report any potentially misleading environmental or sustainability claims through their website or by contacting the ACCC Infocentre.

For more regulatory news

Source: ACCC

Share:
esg
esg
esg
esg

Regulators Headlines

Closing the Climate Gap: How the SBTi Revision Impacts Corporate Net-Zero Plans

Closing the Climate Gap: How the SBTi Revision Impacts Corporate Net-Zero Plans

Trump Backs 24 States Suing New York and Vermont Over Climate Liability Laws

Trump Backs 24 States Suing New York and Vermont Over Climate Liability Laws

Businesses Call for UK–EU Carbon Market Connection

EU to Expressly Set Out Sustainability Reporting Rules by October

Trump’s Support for Seabed Mining Draws EU Criticism

EU Moots Plans to Ban Carbon Fibre by 2029

PwC: Singapore's Sustainability Legal Services to Triple by 2033

SBTi Releases Revised Corporate Net-Zero Standards for Public Input

Research: European ESG Funds Invested Over €123B in Fossil Fuels

Australian Super Fund Active Super Fined $10.5M Over Greenwashing