Insights

Case studies, fact sheets and interviews offering hints, tips, and inspiration to help your business grow. 

From 7 May 2024, the North East Growth Hub is a project of the North East Combined Authority. We may still refer to "the North East Local Enterprise Partnership" (or "the North East LEP") in some of our older articles. 

What is ‘greenwashing’ and how can businesses avoid it?

Greenwashing is when an organisation makes misleading claims about its green credentials, claiming to be more environmentally friendly than it actually is. 

It can be done deliberately but it’s also something that businesses can fall foul of unintentionally. And as well as being potentially misleading for customers, greenwashing can damage the reputation of your business.

So here’s our quick guide to avoiding greenwashing when talking about your own business’s carbon reduction efforts.

Be specific

When talking about your business’s environmental credentials, you should avoid using language that is vague or ambiguous. This could include terms like ‘environmentally friendly’, or ‘eco’, particularly if you use them without any additional information to back up your claims.

Find out more: The government’s Green Claims Code includes more detailed guidance here.

Back up your claims

Following on from the point above, you should back up your claims with evidence. This could include up to date, credible research or verification via a recognised environmental standard.

Find out more: Take a look at this anti-greenwashing guide from Planet Mark for more information.

Think about your use of images

Unilever, which makes products including Dove soap and Marmite, has been investigated by the Competition and Markets Authority (CMA) for making ‘vague and broad’ claims. This has included its use of images and logos such as green leaves, which may persuade consumers that a product is more environmentally friendly than it actually is.

Find out more: Read about the investigation of Unilever here.

Tell the whole story

You should be clear about the environmental impact of the entire life cycle of your product or service and not just focus your claims on one part of it. For example, airline Lufthansa had some of its adverts banned in 2023 by the Advertising Standards Authority (ASA). Lufthansa used the phrase ‘fly more sustainably’ and said it referred to its Green Fares option, but the ASA said the adverts did not show the impact airlines have on climate change.

Find out more: Read more about Lufthansa and other airlines which have had adverts banned for greenwashing here.

Be aware of relevant codes and guidelines

If businesses are thought to be misleading consumers, they can face action from organisations including the ASA, which is the UK’s independent regulator of advertising across all media. The Competition Markets Authority is also investigating whether consumers could be being misled by greenwashing and has produced its own Green Claims Code.

Business operating in certain sectors may also need to abide by industry-specific regulation – for example, the Financial Conduct Authority is introducing on new, anti-greenwashing rules relating to the naming and description of financial products. 

Find out more: See more guidance from the ASA here.

Be truthful

And of course, at all times you should be honest and transparent. Share when lessons have been learnt and acknowledge when there’s still work to be done. This not only builds trust with your customers but can also help other businesses that are also doing their best to reduce carbon emissions.

Find out more: Take the CMA’s Green Claims Code quiz to check your knowledge, and make sure your business is following government guidance here

Find more resources to help you reduce carbon emissions in our Net Zero for Businesses toolkit.