ACCC's Draft Guidelines to Thwart Greenwashing

Published on:
by KnowESG
KnowESG_ACCC's draft guidance to rein in greenwashing
Image courtesy of

The ACCC has taken a significant step to enhance the credibility of environmental and sustainability claims made by businesses while safeguarding consumers against deceptive practices known as 'greenwashing'.

In response to the ACCC's recent investigation, which revealed that 57 per cent of surveyed businesses were potentially misleading consumers with their environmental claims, the organisation has published draft guidance aimed at rectifying such behaviour.

According to ACCC Chair Gina Cass-Gottlieb, businesses must be transparent and truthful in their environmental or sustainability claims, especially as consumers become more environmentally conscious.

False or misleading claims erode consumer trust, particularly when individuals are willing to pay higher prices based on these assertions. Furthermore, genuine businesses that adopt sustainable practices are put at a disadvantage when competing against those that engage in greenwashing without incurring the same costs.

To assist businesses in making accurate environmental claims and fulfill their obligations under the Australian Consumer Law, the ACCC has outlined eight practical principles in its draft guidance. Adhering to these principles reduces the likelihood of misleading consumers and violating consumer protection regulations.

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

Clear, accurate, and trustworthy information, substantiated by evidence, should be provided to consumers regarding any environmental or sustainability claims. Ms. Cass-Gottlieb says that businesses should refrain from making claims if they are uncertain or unable to substantiate them.

The ACCC is inviting feedback from various stakeholders, including businesses, consumers, and other interested parties, on the draft guidance.

They are particularly interested in understanding if the proposed guidelines improve businesses' confidence in making legitimate environmental and sustainability claims and if any concerning green claims have been observed.

Feedback from consumers regarding how businesses can provide useful and accurate information regarding green claims is also highly encouraged. This collaborative approach aims to create a framework that enhances transparency, trust, and accuracy in environmental claims.

For more regulatory news

To view and compare company ESG Ratings and Sustainability Reports across sectors, follow our Company ESG Profiles page.

Source: ACCC


Regulators Headlines

Weightmans Establishes New ESG Advisory Group

Weightmans Establishes New ESG Advisory Group

Egis Appoints Sustainability Chiefs in Middle East

Egis Appoints Sustainability Chiefs in Middle East

New Rules for Green Funds: What Investors Need to Know

HKMA Extends Green Finance Grants

AAB Launches ESG Services to Support Businesses

FCA Tightens Green Investment Rules to Thwart Greenwashing

CBK Publishes Green Finance Rules to Curb Greenwashing

ASERCOM Establishes New ESG Working Group

EY Opens Sustainable Finance Hub in Dublin

SBTi Updates Automaker Targets for 1.5°C