Green Claims & The DMCC Act: Practical Steps to Ensure Compliance
In the first two articles of this series, we explored the arrival of the DMCC Act's enhanced consumer protection powers and delved into the specific types of misleading environmental claims – or greenwashing – that are now firmly under the regulatory spotlight (and carry significant risk). We've covered the what and the why; now it's time to focus on the how.
Understanding the rules and the potential pitfalls is essential, but it’s proactive steps and robust processes that will truly protect your business and build authentic citizen trust. Complacency is not an option, as the Competition and Markets Authority (CMA) now has the power to act decisively against non-compliant claims.
So, what practical measures should your business be taking right now to ensure your environmental claims are accurate, substantiated, and compliant with the strengthened regulations?
1. Conduct a Thorough Audit of All Environmental Claims
You can't fix what you don't know is broken. Start by systematically reviewing every environmental claim your business currently makes across all platforms:
Website: Product descriptions, sustainability pages, blog posts.
Packaging: Labels, symbols, narratives.
Marketing Materials: Adverts (print, digital, broadcast), brochures, point-of-sale displays.
Social Media: Posts, bios, campaign content.
Corporate Reporting: Sustainability reports, investor relations materials.
For each claim, ask critical questions based on the principles discussed in our previous article: Is it specific? Is it clear? Can we prove it? Does it consider the full lifecycle? Is it potentially misleading in any way?
2. Gather and Organise Your Evidence
Every environmental claim must have credible evidence backing it up. This is non-negotiable.
Identify Requirements: For each claim identified in your audit, determine precisely what evidence is needed to substantiate it.
Collect Proof: This might involve sourcing lifecycle assessment (LCA) data, obtaining third-party certifications (e.g., organic, B Corp, Fair Trade), gathering supply chain documentation, compiling energy usage data, or commissioning independent tests.
Centralise & Review: Store this evidence centrally and review it regularly to ensure it remains current and relevant to the claims being made. If robust evidence cannot be found for a claim, it must be amended or removed.
Drinks Industry Example: Claiming your gin uses "locally sourced botanicals"? You need records proving their origin. Claiming a specific reduction in water usage per bottle of spirits? You need the baseline data and current data to demonstrate the reduction.
3. Train Your Teams
Compliance isn't just a legal or marketing issue; it requires organisational awareness.
Educate Key Staff: Ensure teams involved in product development, marketing, sales, legal, and communications understand the rules outlined in the Green Claims Code and the implications of the DMCC Act.
Foster a Culture of Accuracy: Emphasise the importance of precision and evidence when discussing or developing environmental messaging.
4. Implement Robust Internal Processes
Don't let misleading claims slip through the net. Develop clear internal procedures for creating, reviewing, and approving any new environmental claims before they go public.
Define Responsibilities: Who is responsible for checking claims against evidence? Who gives final sign-off?
Create Checklists: Use checklists based on the Green Claims Code principles to guide the review process.
Maintain Records: Keep records of approved claims and the supporting evidence.
5. Prioritise Clarity and Specificity
Move away from ambiguity. Vague terms are red flags for the regulators and confusing for consumers.
Be Precise: Instead of "eco-friendly packaging," state "Our bottle is made from 70% recycled glass and is fully recyclable." Instead of "sustainable ingredients," specify "Made with organically certified apples grown to Soil Association standards."
Explain Your Terms: If you use a specific term (like 'regenerative farming'), briefly explain what it means in your context.
6. Adopt Full Lifecycle Thinking
Consider the entire journey of your product, from raw material to disposal.
Holistic View: Don't just focus on one 'green' aspect (like packaging) if other areas (like transport or production) have significant impacts. Acknowledge the complexities where necessary.
End-of-Life Clarity: Be specific about recyclability or compostability – does it apply to all components? Is it dependent on local infrastructure?
7. Embrace Transparency
Honesty builds trust. While highlighting achievements, don't be afraid to be transparent about challenges or areas for improvement.
Acknowledge Trade-offs: Sometimes, improving one environmental aspect might negatively impact another. Explaining these complexities can be more credible than presenting an overly simplistic picture.
Report Progress: Share your sustainability goals and report transparently on your progress (both successes and challenges).
8. Seek Expert Guidance When Needed
Navigating sustainability communications and regulations can be complex. If you are unsure about specific claims, evidence requirements, or compliance procedures, seeking external expertise can provide clarity and confidence. Specialist consultants (like us at Avallen Solutions) can assist with claim audits, evidence gathering, and developing robust communication strategies.
Beyond Compliance: Building Authentic Trust
Implementing these steps is not merely about avoiding fines; it's about building a resilient brand based on authenticity and transparency. Citizens are increasingly savvy and value honesty. Demonstrating a genuine, evidence-based commitment to sustainability, communicated clearly, is becoming a powerful differentiator.
In the final article of this series, which we’ll publish next week, we will look at how to move beyond mere compliance and effectively, authentically communicate your sustainability story in this new regulatory environment. Stay tuned!
