Greenwashing

Greenwashing is rarely deliberate in small businesses. More often it is an honest overstatement: “eco-friendly packaging” when only part of it is recyclable, or “carbon neutral” on the back of a few offsets. But regulators judge the claim, not the intent.

What it means for a small business

In the UK, the Competition and Markets Authority’s Green Claims Code sets out six principles. Claims must:

• Be truthful and accurate
• Be clear and unambiguous
• Not omit or hide important information
• Make only fair and meaningful comparisons
• Consider the full life cycle of the product or service
• Be substantiated

Since 6 April 2025, under the Digital Markets, Competition and Consumers Act 2024, the CMA can decide for itself whether consumer law has been broken and fine businesses up to 10% of global turnover. The Advertising Standards Authority also rules on misleading green adverts.

Greenwashing risk is not limited to consumer marketing. Investors, grant assessors and tender panels are increasingly alert to vague claims, and an unsupported statement in a pitch deck or bid can undermine trust in everything else.

An example

Instead of “We’re a green business”, a small printer writes: “We switched to a renewable electricity tariff in 2026, recycle all paper offcuts, and our measured footprint for 2026 was 9 tCO2e.” Every part of that statement is specific and can be checked.

How ESG Now handles it

The ESG Now report sticks to what can be evidenced. It labels every figure as measured, estimated or a data gap, shows the calculation behind each line and lists what is not included in your carbon footprint. That makes it a solid basis for any public claim. Read how to put ESG in your pitch deck without greenwashing, or start your free report.