Understanding the concept of ‘green claiming’ – making environmental or sustainability claims about products or practices, often for marketing purposes – is essential for businesses looking to effectively communicate their commitment to sustainability.
Environmental claims can be a powerful marketing tool. But those trying to tap into a growing consumer desire for sustainable products and practices are having to walk the delicate tightrope between shining a well-deserved spotlight on their businesses’ great work, and accidentally misleading customers on the environmental benefits of their products and practices. Not only does making credible claims reflect good business practice, but it’s also a legal requirement under Australian Consumer Law which published its updated guidance document in December 2023.
When it comes to sustainability-related claims on products, authenticity and clarity can cut through the noise and speak volumes to customers. Today’s consumers often prioritise sustainability in purchases, relying on claims made to support their decisions. Therefore, it is
important to pay attention to the transparency and specificity of any sustainability claims being made.
Any labelling on products should provide clear and specific information about the environmental or sustainability benefits of the product or service. Vague or unsubstantiated claims such as “green” or “eco-friendly” can mislead customers and lead to breaching Australian consumer law.
To support genuine environmental and sustainability benefits, numerous certification bodies such as the Energy Star Rating, Fair Trade and Forest Stewardship Council® (FSC®) have been established to verify best practices and lend their logos to products that have been assessed and certified. Customers are increasingly relying on these certification bodies to inform their purchasing decisions.
It is also important to consider the entire lifecycle of the product or service, from sourcing and manufacturing to distribution and disposal. Industry-leading products and services should aim to minimise environmental impact at every stage.
