Skip to main content

Insight article

July 18, 2023

Greenwashing attracts the wrong attention

Businesses must not paint themselves in artificial shades when pushing their environmental credentials.

Greenwashing image of painting - green acrylic

Photo by Nick Collins on Unsplash

The Advertising Standards Authority (ASA) has found Shell guilty of ‘greenwashing’ with an advertising campaign themed ‘ready for cleaner’ that breached advertising guidelines.

The ASA ruled the petrochemical giant’s campaign was misleading as it left out information on Shell’s more polluting work with fossil fuels. The ASA banned the adverts from appearing in the future.

It’s the latest such breach confirmed by the ASA. This follows Tesco’s ban for a plant-based burger ad, a Persil advert, and two HSBC adverts. The ASA found all to be misleading in their claims of environmental benefits.

The ASA is the UK’s independent advertising regulator responsible for ensuring that ads across UK media stick to the advertising codes.

“Action like this to tackle inflated environmental sustainability claims is only likely to increase, as we see rising consumer and investor demands for products and services that fulfil sustainable objectives.

For example, companies who may have selectively highlighted some actions over others, or perhaps slapped a green label and a recycling logo on a product need to be aware that their customers are going to look below the surface to be sure that brands aren’t offering them empty promises.”

Victoria Holland, Partner and Head of Corporate and Commercial at RIAA Barker Gillette

The press has spotlighted corporate greenwashing in the financial services sector too. But, the Financial Conduct Authority has anti-greenwashing rules on its schedule for later this year. It intends to include them in its Sustainability Disclosure Requirements.

“Certainly, larger organisations need to focus on Environmental, Social, and Governance (ESG) ratings, as this increasingly drives investment decisions in financial markets. It is inevitable that this type of attention will filter down to smaller enterprises regarding consumer demands.”

Victoria Holland

The term ‘greenwashing’ was first coined by an environmentalist in the USA during the 1980s. However, it has only recently entered everyday use. Some of the examples highlighted as corporate greenwashing tactics include:

  • Companies claiming that they have implemented positive ESG processes while the results or progress are yet to be seen
  • Cherry-picking product attributes or data and ignoring others which would be negative in environmental terms
  • Misuse of labelling schemes

The ASA and its sister organisation CAP (Committee of Advertising Practice) have published guidance. The guidance aims to help businesses comply with the ASA and CAP’s codes for broadcast and non-broadcast advertising, sales promotions and direct marketing communications. They also include postings on social media.

Contact Victoria Holland today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • Why is clear contract drafting important?
    How simple contract clauses can protect your business.


    Read more
  • Ensuring equality: A legal guide to responsibilities and compliance
    Understanding equal opportunities in the workplace


    Read more
  • Navigating the Economic Crime and Corporate Transparency Act 2023: What it means for your business
    The Economic Crime and Corporate Transparency Act 2023 (the Act) represents a significant shift in the UK's approach to combating economic crime, improving corporate transparency, and anti-mo


    Read more
  • Blowing kisses, not boundaries
    Tribunal clears air on workplace etiquette.


    Read more
  • Estate planning: How not to make mincemeat of it!
    The High Court has confirmed that a will handwritten on the back of two cardboard food packages is legally binding.


    Read more

What they say...

  • C Smith, March 2025
    “As executor of a will it was a relief for a solicitor to act on my behalf as though no disputes it was still a lengthy and complex process. It was dealt with mostly by Charlotte B. who kept me informed at all times. She explained the process c

  • Marc, March 2025
    “RIAA Barker Gillette were engaged to handle a real estate transaction with unusual circumstances. As a non-UK resident unfamiliar with English conveyancing procedures, I felt completely satisfied with the depth of the information and explanati

  • Leigh, March 2025
    “Instructed Martin on my first property purchase. He was a delight to work with, kept me informed and updated regularly. It was an incredibly smooth and quick process. Couldn’t be happier.”

  • Ms Brownell, March 2025
    “Patrick was amazing from start to finish. He made the process so easy, and explained each step in detail ahead of time so I’d understand what would happen and when. He was incredibly organized and noted every detail, calling out things t

  • Roman Cassini, February 2025
    “Peter Wright – highly recommended solicitor, helped us though a complicated flat sale with consummate professionalism.”

Read more