The Australian Competition & Consumer Commission (ACCC) recently announced it would be investigating a number of businesses for potential ‘greenwashing’, following an internet sweep which found more than half of the businesses reviewed made concerning claims about their environmental or sustainability practices.
Of the 247 businesses reviewed during the sweep in October/November 2022, 57% were identified as having made concerning claims about their environmental credentials. Most industry sectors examined had a significant proportion of concerning claims. To our knowledge, none were BICSI members, however the ACCC’s action provides compelling motivation for all members to avoid ‘greenwashing’.
“Our sweep indicates a significant proportion of businesses are making vague or unclear environmental claims, which warrants further scrutiny,” ACCC Deputy Chair Catriona Lowe said. “Consumers are, 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.
“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.
“Where we have concerns, we will be asking businesses to substantiate their claims. Already, we have several active investigations underway across the packaging, consumer goods, food manufacturing and medical devices sectors for alleged misleading environmental claims and these may grow, as we continue to conduct more targeted assessments into businesses and claims identified through the sweep. We will take enforcement action where it is appropriate to do so as it is critical that consumer trust in green claims is not undermined.
“We want to see businesses taking steps to ensure that environmental claims are accurate as well as meaningful for consumers. Our sweep has shown that claims are most useful where they are relevant, clear, reliable and transparent.
“We will engage directly with businesses and industry associations to improve compliance with the Australian Consumer Law.
“Importantly, we encourage businesses to come forward if they become aware they have made false or misleading marketing claims. 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 contact the ACCC through its website – www.accc.gov.au – to report any potentially misleading environmental or sustainability claims.
As part of the 2022-23 Compliance and Enforcement Priorities, the ACCC is prioritising consumer and fair-trading issues in relation to environmental and sustainability claims.