Greenwashing:
It’s the end of an era

The UK fashion and consumer goods industry is entering a new era of scrutiny, where sustainability claims are no longer a marketing advantage but a legal liability—if misused. The CMA’s Green Claims Code, having recently issued an updated guidance in response to requests from stakeholders in a variety of sectors, is entering a new crackdown on greenwashing.

The UK crackdown is very real:

• The CMA can now fine companies up to 10% of global turnover for misleading claims
• Enforcement is expanding across entire supply chains, not just brands
• 62 % of sustainability claims are misleading or unsubstantiated  in the UK

As regulators tighten enforcement, brands must move beyond vague promises and prove their environmental impact with precision. In this landscape, transparency isn’t just ethical—it’s essential for survival.

Green Claims Update: What’s Changing in 2026 for the UK and EU?

The CMA’s latest guidance provides practical examples of how enforcement may play out in real-world scenarios, helping businesses assess their liability. This reflects a broader shift from high-level principles to more operational expectations, particularly for companies managing complex supplier and distribution networks.

At the same time, the EU is entering a new phase of green claims regulation. Member states are beginning to implement rules under the Empowering Consumers for the Green Transition Directive, which will apply from September 2026. These rules introduce stricter requirements for substantiating claims and ban certain misleading practices outright, especially vague or forward-looking environmental statements that lack evidence.

5 Takeaways from the CMA’s Latest Guidance

1. Supply chain

The guidance explains that all businesses involved (manufacturers, suppliers, brands, retailers) can be responsible for green claims—not just the company that markets the product.

A claim can be made by a business even if it:

• repeats information from a supplier
• presents claims on packaging, websites, or marketing
• omits key information that affects consumer decisions

2. Consumer law

Green claims must comply with UK consumer protection law, particularly rules against misleading actions or omissions.

Claims must be:

• accurate
• clear
• substantiated with evidence

3. Shared liability

The document gives real-world scenarios showing how responsibility is shared:

• A retailer may be liable if it repeats a misleading supplier claim without checks
• A supplier may be primarily responsible if it provides false information
• A retailer and brand can both be liable if they market misleading claims

4. Internal processes

Businesses are expected to have:

• Internal systems to check and verify claims
• Processes for ongoing review of claims
• Staff training on making accurate environmental claims

Retailers, in particular, are expected to:

• Request and review supplier evidence
• Perform checks and due diligence
• Maintain documentation for claims

Suppliers and manufacturers should:

• Provide evidence and verification to support claims
• Keep records and ensure transparency
• Update retailers when claims change

5. Marketing message

Green claims must:

• be clear and not misleading
• include all important information close to the claim

Consumers should not need to “dig” for essential details (e.g., hidden in links or QR codes)

Case Study: Kit & Kin ‘Eco nappies’ sustainability claims challenged by P&G UK

The Advertising Standard Authorities (ASA) recently found that Kit & Kin Ltd’s “eco” nappies and baby wipes were “sustainable,” “plant-based,” and “biodegradable” claims were misleading. The regulator concluded that the claims were not sufficiently substantiated across the full product lifecycle and failed to disclose potential negative by-products associated with the biodegradation process.

A webpage promoting Kit & Kin’s “Eco nappies & wipes” range described the products as “better for our world” and stated that each purchase contributed to rainforest protection. The same messaging appeared across linked product listings for nappies and baby wipes, which carried the tagline “Protecting Your World, Naturally.” Additional wording on those listings emphasised environmental responsibility, including the claim “Planet-conscious. Protecting our future.”

Kit & Kin explained that it holds B Corp certification, a designation intended to reflect adherence to standards on social and environmental performance. The company also pointed to product features including the use of FSC-certified paper, hypoallergenic materials and manufacturing in a carbon-neutral facility.

However, information about its partnership with a rainforest protection charity was not included in the advertisement and, in any case, was not considered sufficient to support the claim that its products were “protecting the environment.” There was also no evidence provided to show the products caused no environmental harm across their full life cycle.

Overhaul of B Corp certification

B Corp has introduced a new certification model aimed at boosting credibility and tackling greenwashing concerns. The former points-based system—where companies could balance weaknesses in one area with strengths in another—has been replaced by mandatory minimum standards across seven key impact areas, including climate action, human rights, and fair labour. The process has also been strengthened with independent verification, with applications now audited by accredited third-party bodies.

Building Trust in a Post-Greenwashing Luxury Market

As enforcement intensifies, compliance is no longer just about avoiding penalties—it’s about protecting brand credibility. Consumers are becoming more informed and skeptical, with trust hinging on authenticity and transparency. Brands that proactively align with regulatory expectations will not only mitigate legal risk but also strengthen long-term customer relationships.

The ASA has recently ruled against Lacoste, Nike, and Superdry for promoting clothing ranges with blanket “sustainable” claims. Although each brand pointed to initiatives like lowering carbon emissions and incorporating recycled inputs, the ASA determined that these statements were too vague and lacked the necessary context or evidence. Without clear qualification or substantiation, the claims were deemed likely to give consumers a misleading impression of the products’ environmental impact.

K&L GATES, November 2025

Case Study: Shein’s environmental claims come under scrutiny in Germany

Shein has recently removed its net-zero claims in Germany after a greenwashing challenge by environmental group Deutsche Umwelthilfe. The complaint argued that Shein’s pledge to reach net-zero emissions across its value chain by 2050 lacked sufficient evidence, particularly given the company’s reported 23% rise in emissions year-on-year. The move follows a series of regulatory actions against Shein over misleading environmental claims.

The organization said Shein has agreed to a binding commitment to stop the disputed practices, with substantial fines attached if it breaches the terms in the future. The company opted for this route instead of taking the matter to court.

Following the complaint, the company agreed to a legally binding cease-and-desist order, committing to withdraw the disputed claims in Germany and face financial penalties if similar statements are made again. The case highlights the growing scrutiny over how such claims are presented to consumers.

Legal Teams Under Pressure—and a Smarter Way Forward

The burden of compliance increasingly falls on internal legal teams, who must review vast volumes of product descriptions, campaign assets, and labelling across fast-moving collections. This creates a tension between speed and scrutiny, especially in an industry where time-to-market is critical. Traditional legal workflows are often too slow or resource-intensive to keep pace with seasonal drops and digital-first campaigns.

What’s increasingly needed is a more flexible approach to legal support—one that can scale alongside the pace of the business. Brands can benefit from on-demand expertise that helps review high volumes of product descriptions and marketing content efficiently. With the right combination of legal insight, streamlined processes, and smart use of technology, it becomes possible to identify risk, standardize claims, and maintain consistency across channels without slowing things down.

Conclusion

Our 3 recommendations (under Conclusion)

1. Move from “advisory” to active verification of claims

Regulators are shifting from principles to enforcement with real operational expectations.

For in-house legal teams, that means:

• Don’t just review marketing copy—validate the underlying evidence
• Build internal processes to test whether claims are substantiated across the full product lifecycle
• Require business teams to present documented proof before sign-off

2. Extend legal oversight across the entire supply chain

A big shift highlighted in the article is that liability now extends beyond the brand to suppliers, manufacturers, and retailers.

So legal teams should:

• Implement supplier due diligence frameworks for sustainability claims
• Require contractual obligations for evidence provision and updates
• Collaborate with procurement and ESG teams to ensure end-to-end transparency

3. Build a defensible audit trail for every green claim

Regulators now expect companies to retain documentation and demonstrate how claims were verified.

Legal teams should:

• Establish centralised documentation systems for all environmental claims
• Ensure claims are:
  • clear
  • specific
  • regularly reviewed and updated

Prepare for scrutiny by maintaining a “ready-to-defend” file for each claim

Taken together, these developments signal a clear direction: environmental claims must be specific, verifiable, and transparently communicated. Businesses operating across the UK and EU will need to align their marketing, product labelling, and internal compliance processes to meet rising regulatory expectations—and avoid increasing enforcement risk.

As long-standing supporters of sustainability—and a certified B Corp—Obelisk is committed to both advancing sustainable practices and working with brands that demonstrate a genuine, meaningful commitment. We partner with organisations that share these values, helping to ensure their environmental and social impact is authentic, accountable, and aligned with our shared purpose.

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