Green Claims Code in the UK: What businesses need to know
For many consumers, sustainability is a deciding factor when choosing products and services, and for businesses, it can be a key differentiator. But with the rise in environmental messaging comes the risk of greenwashing, where claims about sustainability are exaggerated, vague or misleading. To tackle this, the UK’s Competition and Markets Authority (CMA) introduced the Green Claims Code to set clear standards for making environmental claims that are accurate, transparent and backed by evidence.
The CMA Green Claims Code applies to any business marketing to UK consumers, whether through product packaging, advertising, websites, or social media. It is designed to ensure that claims such as: sustainable, eco-friendly, or carbon-neutral are credible and transparent, giving customers the confidence to make informed choices.
What is the Green Claims Code?
The green claims code is official guidance from the CMA to help businesses comply with UK consumer protection law when making environmental claims. It applies to organisations of all sizes and sectors, covering everything from labels and product descriptions to marketing campaigns and digital content.
The aim is simple: any claim about a product, service or business’s environmental performance must be truthful, clear, and supported by credible evidence. By setting these standards, the CMA aims to protect consumers, encourage fair competition, and promote genuine sustainability in the marketplace.
Why was the CMA Green Claims Code introduced?
As more consumers prioritise sustainability in their purchasing decisions, there has been a rise in environmental claims across advertising and branding. While many of these claims are legitimate, others have been vague, exaggerated or misleading. This can make it harder for people to make informed choices, and it undermines the trust for genuinely sustainable businesses.
The CMA introduced the green claims code to:
- Prevent businesses from overstating environmental benefits
- Ensure all claims can be substantiated with credible evidence
- Promote transparency and fairness across markets
You can read the CMA’s full guidance here.
The six principles of the Green Claims Code
The CMA has outlined six principles that every business must follow when making environmental claims:
- Be truthful and accurate – Claims must reflect the product or service’s actual environmental impact.
- Be clear and unambiguous – Use plain language that consumers can understand.
- Do not omit or hide important information – Provide all relevant facts, not just positives.
- Make fair and meaningful comparisons – Only compare like-for-like products or services.
- Consider the full life cycle – Take into account the product’s environmental impact from production to disposal.
- Be able to substantiate claims – Hold credible evidence to support every statement.
For more practical tips on avoiding greenwashing, see our blog on the DMCC Act and environmental claims.
Who must comply?
Any business selling or promoting products and services to UK consumers must comply with the CMA Green Claims Code. This includes UK-based companies and international businesses marketing directly to UK customers. The rules apply across all channels, from physical packaging to e-commerce listings and social media campaigns.
Consequences of non-compliance
The CMA and the Advertising Standards Authority have the power to take enforcement action against misleading environmental claims. Since 2024, penalties for non-compliance can include:
- Fines of up to 10% of global turnover (or £300,000 for individuals)
- Orders to amend or withdraw misleading claims
- Reputational damage and loss of customer trust
Practical steps for compliance
Meeting the requirements of the Green Claims Code takes preparation and consistency. Here’s how to approach it:
- Audit your existing claims
Review all environmental claims across your marketing, packaging and internal communications. Check them against the CMA’s six principles to spot any gaps or risks. - Gather and organise your evidence
Ensure every claim is supported by credible, up-to-date data. This could include lifecycle assessments, supplier certifications or verified carbon footprint measurements. Keep this evidence organised and accessible in case regulators request it. - Be specific in your language
Replace vague terms like “eco-friendly” with specific, measurable facts. For example, say “made with 80% recycled content” rather than “made sustainably”. - Train your teams
Make sure marketing, product and sustainability teams understand the Code’s principles and how they apply to their work. Regular training helps maintain compliance as claims evolve. - Review regularly
Set a schedule to re-check claims and supporting evidence, particularly if your product, supply chain or processes change. Outdated claims can be just as damaging as false ones. - Consider third-party verification
Where possible, use recognised third-party certifications to support your claims. This can enhance credibility and reduce the risk of disputes.
How does this differ from EU rules?
While the European Union is introducing its own Green Claims Directive, it will not apply in the UK. However, UK companies selling to EU customers will need to meet both sets of rules: the green claims code for the UK market and the EU Directive for claims made to EU consumers.
For the UK market, the CMA’s guidance remains the primary standard for environmental claims.
Final thoughts
Following the CMA green claims code is not just a legal requirement. It is also an opportunity to build trust, show genuine commitment to sustainability, and stand out in a crowded market. For consumers, it provides clarity and reassurance. For businesses, it sets a standard that strengthens credibility and supports long-term relationships with customers.
Want to make sure your environmental claims meet the Green Claims Code?
Zevero helps businesses turn accurate carbon and environmental data into credible, compliant claims. Talk to our team to find out how we can help.