Being honest, accurate and transparent in messages about your business’ ESG credentials has always been a moral obligation. Now it is rapidly becoming a legal requirement, too.
The way businesses talk about their carbon impact and the sustainability benefits of their products or services is coming under increasing scrutiny.
It means that loose phrases could breach the law if not accompanied by evidence and proof of their accuracy.
What kind of phrases are a problem for greenwashing rules?
Any phrases that are vague, unproven or unmeasured are becoming a risk – and that includes some which have been real favourites with businesses over the years.
Phrases such as:
- ‘green’
- ‘sustainable,’
- ‘planet friendly’
- ‘ESG friendly’
- ‘carbon neutral’
- ‘carbon positive’
- ‘net zero’
- Any claim such as ‘greenest’ that is likely to be impossible to prove
These rules apply not only to packaging in the consumer market but to external messaging and advertising across all sectors.
This means that just about any business which talks to an external audience (whether that is consumers or other businesses) needs to think really carefully about the environmental claims it makes about its products, services and company ethos.
For instance, if you say a business, product or service is ‘environmentally friendly’ then the claim needs to be accompanied by a statistic, preferably from your annual transition plan, confirming its carbon dioxide equivalent figure (tCO2e).
Who is in charge of ESG messaging rules?
There are four major bodies currently working to clamp down on greenwashing through regulations that are legally binding.
These are:
- The Advertising Standards Authority (ASA), which is responsible for ensuring that advertising and marketing messaging in the UK is clear, objective and truthful.
“Marketers should always ensure that they have robust substantiation for the claims they make.” The ASA, April 2025
- The Competitions and Markets Authority (CMA), which has gained new powers to impose significant fines for any misleading claims – including environmental claims.
- The Financial Conduct Authority (FCA) which has launched new Sustainability Disclosure Requirements for businesses in the finance sector, in force from January 2026 – as well as Anti Greenwashing Rules (AGR), which came into force in May 2024.
- The UK Government, which has passed the Digital Markets, Competition and Consumers Act (DMCC) which aims to strengthen consumer protection against misleading information, including greenwashing. It also provides the CMA with powers to enforce these new rules.
UK businesses engaging in B2C communications in the European Union will also need to take note of the new EU Empowering Consumers for the Green Transition Directive (ECGT), which becomes enforceable in September 2026.
However, EGCT has no jurisdiction over UK businesses unless they market inside the EU.
B Corps in particular should pay attention here. Because certification requires verified transparency in sustainability claims, any B Corp that markets to EU consumers will find itself needing to align with ECGT standards. We reviewed the rules closely to ensure our own work met the criteria and we’d recommend other certified businesses do the same.
Do new rules about ESG messaging also apply to LinkedIn?
The Advertising Standards Agency (ASA) may have ‘advertising’ in its title but its codes cover all marketing communications, whether B2C or B2B, for companies promoting their services or products online.
So, yes, that includes LinkedIn – and it covers copy published organically, or copy in any sponsored or boosted campaigns.
The best advice is to ensure any claims made on LinkedIn are accurate and honest and do not exaggerate or use vague language to describe sustainability credentials.
What are the implications if your business breaks ESG messaging rules?
There are two main considerations:
- Fines:
Since April 2025, the CMA has been granted powers to fine businesses that breach the rules, in the same way that the Information Commissioner’s Offices issues fines for breaches of GDPR.
It has already sent warning letters to some high-profile businesses – including securing undertakings from fashion brands ASOS, Boohoo, and George at Asda to address allegedly misleading environmental claims.
2. Loss of reputation
Businesses live or die on the trust of those they sell to. So, being fined for misleading customers, clients or other businesses, means they run a severe risk of reputational damage.
How a PR partner can help get your business’ ESG messaging right
A strategic PR partner can help draft key messages, ensuring they connect with the audiences you want to reach and include proof points to back up any claims.
A robust approval process that includes key stakeholders can be designed to ensure everyone who needs to see a message before it is published can do so and be confident it is accurate.
- This process could include a business’ legal team, to ensure messages meet all guidelines.
- Look out for PR companies which work with businesses in the sustainability space and for those with sustainability accreditations.
The benefits of working with a B Corp PR partner
B Corp certified PR companies are committed to meeting legally-binding high standards of verified social and environmental performance.
They will already be familiar with the language and nuances of the sustainability agenda and well placed to act as consultants on how to deliver compliant and impactful messaging.
Top tips on how to ensure your business’ ESG messaging is legal
To avoid regulatory enforcement and potential civil liability claims for mis-selling, it’s important to monitor ESG claims closely.
Here are some top tips:
- Claims cannot be casual or unsubstantiated – and cannot be misleading
- Claims must be supported by independent, verifiable and robust evidence. This may also require a life-cycle assessment which measures the carbon impact of a product or service across its entire lifespan.
- ESG messaging is now a team game, it cannot only be down to the marketing department. Legal and compliance teams should scrutinise ESG statements, too.
- Be as clear as possible about any claims you make. Avoid ambiguous language or throw-away phrases.
- Stay on top of regulations – they are evolving fast in the UK and internationally.
FAQs
Who is responsible for monitoring greenwashing in business messaging?
The Advertising Standards Authority (ASA) and the Competitions and Markets Authority (CMA) work together to ensure any claims made in advertising or marketing messages are clear, objective and truthful. The CMA has new powers to fine businesses that make vague or unsubstantiated claims, including around sustainability.
Are there new laws about how you describe the sustainability of a business or its products and services?
Yes, in April 2025 the UK Government passed the Digital Markets, Competition and Consumers Act (DMCC) which aims to tackle businesses which mislead or make false claims about their products and services.
It gave the Competitions and Markets Authority (CMA) new powers to fine businesses that misrepresent products or services or make false statements about them. The UK Government made it clear that includes claims about sustainability, even though it wasn’t specifically mentioned in the bill.
The Advertising Standards Authority (ASA) has also stressed that adherence to voluntary sustainability standards, such as Voluntary Carbon and Nature credits, does not exempt a business from scrutiny if their messages breach the rules.
What are the greenwashing rules in the financial sector?
The Financial Conduct Authority (FCA) has new anti-greenwashing rules (AGR) in force that apply to all FCA-regulated firms.
It covers:
- Communication with a client in the UK in relation to a product or service
- Communication of a financial promotion to a person in the UK
The rules require any reference to the sustainability characteristics of a product to be:
- Fair, clear and not misleading
- Correct and capable of being substantiated
- Clear and presented in a way that can be understood
The FCA has powers to enforce the rules and has promised to take action if firms make ‘misleading sustainability-related claims about their products or services.’
What are the rules around annual sustainability reporting, such as climate impact reports?
The Government is drafting a UK Sustainability Reporting Standard (SRS).
This is a set of guidelines designed to standardise sustainability reporting for businesses in the UK.
The aim is to enhance transparency and accountability and to ensure that all businesses report their ESG performance in an accurate, consistent and comparable manner.
How can a PR partner support sustainability messaging?
A PR company can support B2B messaging through its strategic advice on communication policies, consultancy on social media campaign building and expert copywriting skills across multiple channels.
Look out for PR companies that are B Corp certified, for extra confidence.
Find out how Midnight can help
Contact us today to discuss your campaign objectives.
We’re proud to have become a Certified B Corp™ in September 2024, joining a global community of leaders that have pledged to use business as a force for good. Click here for more.
Want to know why businesses should lead the ESG charge? Click here for a blog from Joint MD Alex Hankinson.
Click here for more about Midnight’s services.
About the author
Chris Hatherall, Strategy & Content Director: experienced PR professional specialising in communications strategy, expert copy writing and media training.
