Regulatory bodies are clamping down on the enforcement of sustainability claims – is your business ready?

Regulatory bodies are tightening up on sustainability claims, so marketing materials now carry a host of regulatory, litigation and reputational risks – making it more important than ever to ensure your green claims are fair, accurate, and do not leave you open to enforcement action.

A ‘sustainability claim’ (sometimes called an environmental claim, eco-friendly claim, or green claim), is a claim made by a business to a consumer which suggests how a product, service, brand or business provides a benefit, or is less harmful, to the environment.

Which regulatory bodies are enforcing the sustainability claims standards

The Financial Conduct Authority’s (FCA) anti-greenwashing rule now applies to all authorised firms, alongside the new Sustainability Disclosure Requirements (SDR) for labelling, naming and marketing rules already in force for asset managers. Meanwhile, the Competition and Markets Authority (CMA) gained direct fining powers (up to 10% of global turnover) on 6 April 2025 under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), with green claims prioritised for early enforcement.

The Advertising Standards Agency (ASA) also continues to clamp down on unsubstantiated environmental claims, issuing updated guidance and rulings throughout 2025–26.

How the crackdown on green claims impact your marketing strategy

Any sustainability-related messaging (marketing, reporting, investor decks, website copy, product literature or even imagery) now carries material regulatory, litigation and reputational risk.

The FCA expects claims to be fair, clear and not misleading, with evidence and internal approvals mirroring those used for financial disclosures. The CMA’s new powers mean that weaknesses in substantiation, vague claims or omission of context can now trigger direct enforcement, accelerated investigations and significant fines. ASA decisions continue to shape acceptable wording – particularly around life-cycle impacts and absolute claims.

Businesses may need to tighten internal governance, update approval flows, revisit product messaging, and ensure that evidence packs exist for every sustainability claim.

Steps businesses take to ensure their environmental claims are compliant

Businesses need to act quickly, as regulators are already in supervisory mode. Create or update a central claims register, build evidence files for all sustainability statements, and ensure all marketing and communications teams follow a formal green claims review process. Teams should be trained on CMA, FCA and ASA expectations – especially the requirement to avoid broad, absolute or misleading impressions created by visuals or headlines.

Failure to act could result in significant regulatory intervention, product relabelling, campaign withdrawal, compulsory corrections, substantial penalties and reputational fallout.