In July 2023, the Australian Competition and Consumer Commission (ACCC) unveiled its draft guidance for businesses making environmental and sustainability claims. This Draft Greenwashing Guidance is directed towards setting the best practices under the Australian Consumer Law (ACL), indicating how businesses operating in Australian territories can circumvent incidences of greenwashing.
Named the Draft Greenwashing Guidance, the document sets a benchmark for business practises to abide by the conditions of the Australian Consumer Law. Furthermore, it helps corporate entities operating in Australia avoid the pitfall of greenwashing which is a deceptive use of green PR or green marketing.
Greenwashing is a term used to describe situations where a company or an organization spends more time and money claiming to be ‘green’ through advertising and marketing than actually implementing business practices that minimize environmental impact. This misleads consumers who prefer to buy goods and services from environmentally friendly companies.
Through the release of the draft guidance, ACCC intends to ensure businesses operating in Australia are truthful and transparent in their marketing efforts to consumers regarding sustainability initiatives and environmental impact.
This strategic move by the ACCC is a clear reflection of the growing international focus on environmental concerns and the corporate social responsibility of organizations towards environmental conservation and sustainability.
For more details, you can refer to the full article here by Cadwalader, Wickersham & Taft LLP.