Going green is profitable, and sustainability is a hot topic. Given that 62% of Gen Z shoppers prefer to purchase from sustainable brands and a whopping 73% are willing to pay more for sustainable products, the younger generation presents a great opportunity for businesses to demonstrate their commitment to sustainability, safeguard future generations, and generate healthy profit margins.

Unfortunately, some businesses have taken advantage of the sincere good intentions of numerous other businesses by engaging in the practice of "greenwashing," which has led consumers to lose interest in and grow suspicious of the promises being made. The practice of providing erroneous information or a false impression on a product, brand, or service's sustainability is known as "greenwashing." Unfounded claims, such as green packaging, unaccredited brand logos, vague net zero pledges, and claims that a product is made entirely of recycled materials, are used to trick you into thinking that certain products are more environmentally friendly than they actually are.

Companies that make fraudulent or erroneous environmental claims and obtain an unfair advantage are facing stiff penalties from the Competition and Markets Authority (CMA). Six guiding concepts outline what environmental claims must include in their current Green Claims Code. These include:
• Consider the entire lifetime of the product or service
• Be substantiated
• Be truthful and accurate
• Be clear and unambiguous
• Not omit or hide material facts
• Only make fair and meaningful comparisons

This year, plans include giving the CMA the authority to deny environmental claims that are not truthful and to fine businesses up to 10% of their worldwide sales without requiring them to appear in court.

Greenwashing, intended or not, may have been profitable in the past but could turn out to be very costly in the future. Green marketing must be true and accountable to build trust in sustainable products, brands and services.