CPG Giant Under Investigation for Greenwashing
The UK's Competition and Markets Authority (CMA) launched a formal investigation into Unilever regarding potential greenwashing. This is part of a larger series of inquiries into the fast-moving consumer goods (FMCG) sector, which are essential products used on a daily basis (including homecare and personal care products).
According to Sarah Cardell, Chief Executive of the CMA:“So far, the evidence we’ve seen has raised concerns about how Unilever presents certain products as environmentally friendly. We’ll be drilling down into these claims to see if they measure up ... If we find they’re greenwashing, we’ll take action to make sure shoppers are protected.”
What was the alleged greenwashing?
Vague and potentially misleading statements regarding the environmental impact of their products
Claims about some ingredients presented in a way that may exaggerate how "natural" a product is.
Claims focusing on a single aspect of a product that may suggest it is environmentally friendly as a whole.
Certain green claims – particularly in relation to recyclability – that may be unclear, as they fail to specify whether they relate to all or part of a product or packaging.
Unilever’s use of colors and imagery – such as green leaves – may create the overall impression that some products are more environmentally friendly than they actually are.
How did Unilever respond?
“We use the On-Pack Recycling Label (OPRL) to provide consumers with information on how to dispose of our packaging after use, and Unilever is a founding signatory of the UK Plastics Pact, which brings together the entire plastics packaging value chain to tackle the challenges around plastic waste,” Unilever said in a statement, refuting the claim that some of their brand packaging is not recyclable as a whole.
What should brands do to avoid similar accusations of greenwashing?
Brands should thoroughly review their green claims to ensure alignment with guidance in the jurisdictions in which they operate, like the UK Green Claims Code or the US Green Guides.
If you're interested in learning more about Source Beauty ESG and how I support companies of all sizes with their sustainability and impact initiatives - including environmental marketing claims - reach out (maggie@sourcebeauty.co) or check out the Source Beauty services guide.