An internet ‘greenwashing sweep’ by the Australian Competition and Consumer Commission (ACCC) has found a “significant portion” of businesses are making vague or unclear claims relating to environmental issues.
Deputy Chair of the ACCC, Catriona Lowe said the Commission reviewed 247 businesses in its initial sweep, 57 per cent of which were found to be making concerning claims about their environmental credentials.
“The cosmetic, clothing and footwear and food and drink sectors were found to have the highest proportion of concerning claims among the industries targeted in the operation,” Ms Lowe said.
“Other sectors examined also had a significant proportion of concerning claims,” she said.
“Our sweep indicates a significant proportion of businesses are making vague or unclear environmental claims.
“This warrants further scrutiny.”
Ms Lowe said that now, more than ever, consumers were making purchasing decisions on environmental grounds.
She said it unfortunately appeared that rather than making legitimate changes to their practices and procedures, some businesses were relying on false or misleading claims.
“This conduct harms not only consumers, but also those businesses taking genuine steps to implement more sustainable practices,” the Deputy Chair said.
“Businesses using broad claims like ‘environmentally friendly’, ‘green’, or ‘sustainable’ are obliged to back up these claims through reliable scientific reports, transparent supply chain information, reputable third-party certification or other forms of evidence,” she said.
“Where we have concerns, we will be asking businesses to substantiate their claims.”
Ms Lowe said the ACCC already had several active investigations underway across the packaging, consumer goods, food manufacturing and medical devices sectors for alleged misleading environmental claims.
She said the number of investigations may grow, as the Commission continued to conduct more targeted assessments into businesses and claims identified through the sweep.
The ACCC’s nine-page report Greenwashing by businesses in Australia can be accessed at this PS News link.
