Australia Releases Guidance on Making Environmental Claims for Companies

In a move to promote transparency and accuracy in environmental marketing, the Australian Competition and Consumer Commission (ACCC) has released eight guiding principles for businesses. The principles, part of the ACCC’s final guidance on environmental claims, provide a framework for businesses to communicate their environmental efforts while adhering to the Australian Consumer Law. The move aligns with the ACCC’s commitment to addressing environmental and sustainability concerns as part of its Compliance and Enforcement Priorities for 2023-24.

The guidance emphasizes that accurate and truthful claims, backed by evidence, are crucial. It encourages businesses to avoid hiding or omitting important information, explain any conditions or qualifications on claims, and use clear and easy-to-understand language. The goal is to empower consumers to make informed choices and incentivize businesses to compete based on genuine environmental efforts.

The ACCC’s final guidance is the result of feedback from over 150 stakeholders, incorporating perspectives from consumer, business, and environmental organizations. The ACCC is actively addressing misleading environmental claims, with ongoing investigations.

In early 2024, the ACCC plans to release additional guidance on emission and offset claims, trust marks, and information to help consumers assess and rely on environmental claims.

The eight principles outlined by the ACCC are:

1. Make accurate and truthful claims
2. Have evidence to back up your claims
3. Don’t hide or omit important information
4. Explain any conditions or qualifications on your claims
5. Avoid broad and unqualified claims
6. Use clear and easy-to-understand language
7. Visual elements should not give the wrong impression
8. Be direct and open about your sustainability transition

“Environmental claims are often technical and can be difficult for businesses to communicate clearly. By following the principles in our guidance, businesses can more confidently make meaningful claims that consumers can understand and trust. It is important for businesses to consider whether they are exaggerating the environmental benefits of their product or services and whether they have a reasonable basis to make the claims, otherwise, they risk breaching the Australian Consumer Law,” ACCC Acting Chair Catriona Lowe said.