Making environmental claims: A guide for business
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The Australian Government has recently published a guide to help businesses comply with its obligations under the ACL and make trustworthy environmental claims. While this guidance focuses specifically on environmental claims, the principles outlined could also apply to other types of ethical, social and governance claims.
An environmental claim is any representation made by a business in relation to its environmental impact, including claims that give the impression that your business, products or services:
- a. have a neutral or positive impact on the environment
- b. are less harmful for the environment than alternatives
- c. have specific environmental benefits.
Environmental claims can appear on product packaging or labelling, point-of-sale materials, and in a variety of marketing or advertising materials. This includes advertising online and through social media. They may also appear in corporate reporting materials.
This guidance explains the obligations under the Australian Consumer Law which businesses must comply with when making environmental and sustainability claims.
It sets out what the ACCC considers to be misleading conduct and good practice when making such claims, to help businesses provide clear, accurate and trustworthy information to consumers about the environmental performance of their business.
