THE SQUIZ
As more and more companies spruik their sustainability and environmental credentials, the Australian Competition and Consumer Commission (ACCC) says all may not be as it seems. The regulator took a close look at the claims made online by 247 businesses and found that 57% had made unclear or misleading statements, with those in the cosmetic, clothing/footwear, and food/drink sectors found to be the worst offenders. “This conduct harms not only consumers but also those businesses taking genuine steps to implement more sustainable practices,” said the ACCC’s Deputy Chair Catriona Lowe.

WHAT’S THAT ABOUT?
It’s called ‘greenwashing’. Many consumers want to do their bit to protect the planet – that’s why we’re seeing more and more products labelled with keywords like ‘environmentally friendly’, ‘green’, or ‘sustainable’. Companies making those claims must be able to back them up with verifiable scientific reports, traceable supply chain information, and reputable 3rd-party certification. You can’t just go throwing those terms around… Another issue is the rise of the ESG investing movement, which refers to investors who want to support companies that take their environmental, social and governance obligations seriously. It’s talked about a lot in the context of mining companies, but it’s also a big deal for clothing and food/drink producers and retailers with investors interested in ethical supply chains and good environmental stewardship. These days, there are plenty of investors who want to know that their money is making a difference.  

WHAT’S NEXT?
The ACCC says it has issued some ‘please explains’… Lowe says the regulator has “several active investigations underway across the packaging, consumer goods, food manufacturing and medical devices sectors for alleged misleading environmental claims”. And that’s not where it ends – she says they will “conduct more targeted assessments into businesses and claims identified through the sweep.” There’s also a push to educate businesses about what it means when they use terms like ‘green’, ‘eco-friendly’, and ‘kind to the planet’ to describe their products – but the regulator will use the stick when necessary… “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,” Lowe said.