Conscious, eco, green, sustainable, planet-friendly, organic, plastic-free and recycled – all everyday terms used by brands in labelling and messaging, but regulators are now set to clamp down on brands misleading sustainability claims.
The need for sustainability
We have had the Paris Agreement, COP26, commitments and targets but where are we now? According to the doomsday clock, we are 100 seconds to midnight, the marker of total destruction of humanity as we know it.
This may sound dramatic, but it is the closest we’ve ever been in this countdown and unless we take drastic action, the ticking will simply speed up.
However, sustainability need not be about doomongering about all that is wrong, it can be uplifting and about businesses finding innovative ways to drive change.
Businesses need to take real action rather than to just pay lip service to their environmental commitments.
Clamping down on misleading claims
The UK Competition and Markets Authority’s (CMA) recent forensic analysis of more than 100 UK fashion retailers has thrown up question marks around the legitimacy of several brands’ communications. However, there are likely to be other sectors on their radar in the future.
The initial findings from the review show that in many cases there is lacking supporting evidence to support sweeping sustainability claims.
While the results of CMA’s review are yet to be released, they have indicated that stricter guidelines are likely to be put in place in the future.
These may include what is deemed acceptable to be printed on a label, what information brands should be required to share on websites and whether all environmental claims should be audited by a lawyer or consultant.
Consumer preference for sustainable brands
A 2022 study by Deloitte* also shows that there has been a sharp increase in the number of people who have adopted a more sustainable lifestyle in the last 12 months.
Consumers are being more proactive in their pursuit of adopting a more sustainable lifestyle, whether by choosing brands that have ethical or environmentally sustainable practices and values, or by no longer purchasing certain products because they have concerns around the brand’s ethical or sustainability practices or values.
Furthermore, a study by IBM in 2021 showed that 71% of job seekers want to work for environmentally sustainable companies.
What can businesses learn from this review?
Consumer information must be clearer with evidence to support sustainability claims, available in consumer reports or sections on websites that detail what businesses are doing well, what they are not doing so well and how they are going to improve on those failings.
Businesses should also review their entire supply chain. In the review of fashion brands, some of the larger fashion brands are taking a few of their collections to justify sustainable commitments, where it should be their entire production. This means businesses should not over-emphasising select positive environmental points while glossing over holes in their approach.
Which sectors might be next up for review?
At the time of writing CMA have not specified which industries might be up next for review, but there are a number of sectors potentially on the radar including personal care, cosmetic products, home cleaning products and other FMCG categories. But in reality, as sustainability becomes a focus for businesses across all sectors, the importance of adopting environmentally friendly practice and evidencing claims is likely to become more prevalent for all businesses.
In conclusion
Consumers and employees clearly value environmentally friendly brands, but sustainability must be central to their operations, and they must be able to prove their claims.
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Reference: * How consumers are embracing sustainability, 2022