Shelton Stat of the Week

72% of people we surveyed around the globe say they are “very/extremely” interested in hearing from companies about their efforts to reduce GHG emissions. – Global Eco Pulse® 2023

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As the UK adds greenwashing to consumer protection rules, where is the upside for brands that can get it right? 

24 hours after LinkedIn Top Voice Vojtech Vosecky posted a picture of a “Paper Bottle,” it was going viral. The picture revealed a plastic bottle encased in a cardboard disguise. The caption: “If you ever wondered: 'What is greenwashing?' This is it!”

As a champion of corporate responsibility, I was unsure whether to be more delighted by the public shaming of this brand or by the fact 4,000 people had engaged with a post about sustainability communications. Either way, the point is made: If you’re caught deliberately misleading consumers about environmental claims in 2025, you’ll face judgement in both the Court of Public Opinion and the law. 

Despite the Green Claims Directive swinging into force across Europe, many marketers still risk greenwashing and its consequences. Because sustainability sells. ERM Shelton’s own research finds 85% of consumers want to hear from a business about its efforts to reduce GHG emissions. And half would like to be seen as someone who buys eco-friendly products.  

The UK has been fast to mobilize: The Competition & Markets Authority can now fine a business up to 10% of global turnover/revenue for running afoul of the rules set out within the Digital Markets, Competition & Consumers Act 2024. Numerous household names have already been shamed in the media: BMW, Adidas and Transport for London have had to pull ads over misleading claims; and Virgin Atlantic had to cancel a “sustainable fuels” ad. Despite the political rhetoric dominating in the US, litigation has kicked in there, as plaintiffs successfully sue brands for damages related to false advertising on green claims. Delta Air Lines, Keurig Dr Pepper and Colgate-Palmolive and many more have been targeted with lawsuits and/or fines related to their sustainability claims. 

In Europe, the Green Claims Directive aims to ensure that environmental claims are reliable, comparable and verifiable, helping consumers make informed choices. Once enshrined in national law, the reputational and commercial penalties will be substantial; and while we wait for this to pass (circa 2027) many nations are ahead of it with their own application of the rules. In Spain, a legal framework exists to regulate misleading sustainability-related marketing, and France has proactively addressed greenwashing through its Climate and Resilience Law. 

National policy nuances aside, there are clear standards to anti-greenwashing regulations:  

  1. Claims in marketing, advertising, packaging and labels must be evidenced and, importantly, independently verified.  Essentially, if you want to lure a consumer under the promise of sustainability, you must be sure that your data stacks up.  Buzzwords like “eco” and “green” are out — and if you profess to be “better” or “kinder to the environment,” be clear what you are comparing yourself to. 
  2. Any claim about a brand’s environmental impact must be verified — including those made in sustainability reports or by employees on social media. Ironically, some US brands are facing lawsuits over missing targets they voluntarily set after the Paris Agreement. The bottom line: false claims cannot be leveraged to gain a competitive edge.
  3. Beware of associated regulations that may shift the greenwashing goalposts. The EU Packaging & Waste Regulations sets a 30% recycled content minimum for cardboard packaging. If you were previously displaying “30% recycled content” as a marketing message on your product, be warned: Green Claims rules stipulate that you cannot put as an advantage something that is required by law. 

So amidst the anti-greenwashing mantras and threats of losses, it is easy to forget that this regulation carries a good amount of carrot as well as stick. Those 85% of consumers still have products to buy, and now the competition may be impeded.  

Green Claims regulation is designed to create a fairer playing field for businesses that are honest about their commitment to sustainability. Consumers will feel more confident making sustainable choices if the information they receive can be substantiated and verified. Truth will win out, and so the inherent brand value of sustainability will increase.  

Under Green Claims, the reward for doing the right thing, and communicating about it in the right way, is a greater share of wallet.