Think Your Merch Is Sustainable? Here’s How to Make Sure

Greenwashing

As the climate crisis drives increased consumer demand for sustainability, more businesses are stepping up to reduce their environmental impact. However, this has also led to a surge in greenwashing — the act of making misleading, exaggerated, or false environmental claims that are not supported by real actions or verifiable evidence.

Greenwashing misleads customers about how sustainable a product, service, or brand truly is. Often, businesses may not even realize they’re engaging in it. That’s why we've created this guidance to help members identify and avoid greenwashing pitfalls.

The Rise of Greenhushing

Amid growing scrutiny, some companies are responding with greenhushing — intentionally downplaying or hiding their sustainability efforts to avoid accusations of greenwashing. While the fear is understandable, silence can also breed mistrust and diminish progress toward transparency and accountability.

Green Claims must Be...

• Honest and accurate: Never exaggerated or fabricated

• Clear and use specific language: General terms like "eco-friendly" or "green" should only be used when the entire product lifecycle supports those claims.

• Include all relevant information and not mislead consumers

• Disclose lifecycle impacts: If a claim only covers part of the product’s lifecycle, this must be made clear.

• Be evidence-based: All environmental claims must be backed by current, credible, and accessible data.

  
  

Based on the UK’s CMA Green Claims Code.

Real-World Example: ASOS, Boohoo & Asda

In 2022, the UK’s Competition and Markets Authority (CMA) launched an investigation into greenwashing by ASOS, Boohoo, and Asda. The probe revealed vague and misleading terms like "eco", "sustainable", and "responsible", along with visuals that overstated environmental benefits.

Campaigns like:

• ASOS’s Responsible Edit

• Boohoo’s Ready for the Future

• Asda’s George For Good

...were found to include products with as little as 20% recycled content and lacking transparency. In 2024, all three brands agreed to formal undertakings with the CMA to comply with the Green Claims Code or face further enforcement.

Source: CMA investigation into fashion greenwashing

Green Buzzwords: Proceed with Caution

Terms like eco, eco-friendly, climate-friendly, and green are often used to imply environmental benefits. However, when used without explanation, these terms are too vague to be meaningful or trustworthy.

Other Misleading Terms:

• Natural: While it may imply sustainability, not all “natural” materials are safe, non-toxic, or environmentally friendly.

• Biodegradable / Compostable / Recyclable: These terms require precise definitions and clear conditions to avoid misleading the public.

• Net Zero / Carbon Neutral: Should only be used if supported by accurate data and verified claims.

Refer to the Advertising Standards Authority (ASA) for detailed guidance on terminology.

Policy Updates: New Regulations in Play

UK: Digital Markets, Competition & Consumers (DMCC) Bill

As of April 2025, the CMA now has the authority to fine UK businesses up to 10% of global turnover for misleading environmental claims. This includes online content, advertising, and product listings.

EU: Green Claims Directive

Approved in 2024, this directive requires that all environmental claims across the EU be clear, substantiated, and independently verified. Member states must incorporate the directive into national law by March 2026, so requirements may vary by country.

Final Thoughts

As consumer expectations rise and regulations tighten, transparency and integrity are more important than ever. By following this guidance, businesses can avoid the pitfalls of greenwashing.

News . 8th May 2025

As of April 2025, the UK Digital Markets, Competition and Consumers Act 2024 (DMCC) has come into force, enhancing consumer protection against unfair trading.

One of the priorities under the new legislation is to tackle the rise of unsubstantiated and exaggerated environmental claims in marketing, known as greenwashing. Under the new DMCC Act, the Competition and Markets Authority (CMA) have now been given greater enforcement powers, allowing them to impose fines on UK businesses for deceptive marketing practices, with a focus on greenwashing.

If you would like to talk to us about Sustainable Branded Merchandise and our solutions, get in touch on sales@arcadiaonline.co.uk. We’d be happy to show you how we could help.

Get in touch with the team

Sustainability is at the heart of every decision we make, product we provide and supplier we partner with.

Arcadia are EcoVadis Platinum certified.

We acknowledge this status as an indicator of positive intent as an assessed company and will strive to improve our sustainability management performance and drive impact.