What is greenwashing?
This is a personal bug-bear of mine, as PRL prides itself on zero tolerance of companies that greenwash.
We are living in an era where sustainability has become central to consumer choice, corporate strategy, and public trust. In the midst of this, a dangerous trend has flourished in the shadows: greenwashing. It’s the practice of exaggerating or fabricating a company’s environmental credentials, and until now, firms have largely got away with it - facing minor penalties or none at all. I am very glad to say that is going to end.
UK regulators have begun to gain serious muscle in the fight against deceptive environmental claims. Starting from April 6th, The Competition and Markets Authority (CMA) will be able to impose fines of up to 10% of a company’s global turnover, or £300,000, whichever is higher, on those found to be greenwashing. It’s a significant leap from the historic norm, where penalties rarely exceeded £1 million.
This bold move signals more than just regulatory housekeeping, it’s a line in the sand. It places the UK among a growing group of nations determined to clamp down on environmental dishonesty and protect both consumers and the climate.
Greenwashing can be so subtle
Greenwashing is not always blatant. Sometimes it's subtle: a product labelled "eco-friendly" without any verifiable criteria, or a fashion brand boasting a “sustainable” collection, while 95% of its clothing is made from virgin polyester in factories with poor labour standards. Other times, it's more calculated. Think… oil companies advertising net-zero plans, while continuing to expand fossil fuel extraction.
At its core, greenwashing is so dangerous because it undermines genuine climate action. It misleads consumers, distorts markets, and allows polluting firms to maintain the status quo, while appearing progressive.
This deceitful marketing not only erodes public trust, but also puts truly sustainable businesses at a disadvantage. Firms that invest in meaningful change often face higher costs, while greenwashers reap reputational rewards without paying the environmental price. Over time, this disincentivises innovation and weakens public support for sustainable initiatives.
The new UK powers mark a turning point
The UK’s decision to empower the CMA with substantial fining abilities is being hailed by campaigners and consumer rights groups alike as long overdue. Maddy Haughton-Boakes, senior campaigner at the Changing Markets Foundation, didn’t mince words:
“For far too long, large corporations have gotten away with rampant greenwashing, enabling them to continue their climate-wrecking practices and exploit climate-conscious consumers.”
The new regime reflects a broader shift in how green claims are treated: not as minor infractions, but as serious violations with real-world impacts. Businesses that mislead consumers about their carbon footprint, waste practices, or environmental impacts will now have to prove their sustainability credentials, or face financial and reputational consequences.
The global wave of enforcement
The UK is not acting in isolation. Across the world, regulators are waking up to the scale of greenwashing and pushing back. In Germany, the financial regulator recently fined Deutsche Bank’s asset management arm, DWS, a staggering €25 million (£21 million) for making misleading claims about its environmental, social, and governance (ESG) investments.
This comes on the heels of investigations by US and EU regulators into similar practices by banks, fast fashion brands, and consumer goods companies. The trend is clear: green marketing is no longer a free pass, and firms must now be able to substantiate every eco-claim with hard evidence.
How the crackdown will reshape UK business
With the CMA’s powers, UK companies must prepare for a new era of scrutiny and accountability. Here’s how it will likely affect them:
1. Marketing and communications teams will need to ‘step up’
The days of ‘vague language’ and ‘feel-good slogans’ are over. Phrases like: “planet-positive”, “sustainable choice”, or “green solution” must now be backed up with verifiable data. Firms will need clear documentation, lifecycle analyses, third-party certifications, and transparent methodologies to justify such claims.
2. Legal teams will play a bigger role in sustainability
As the regulatory landscape tightens, sustainability communications will increasingly involve legal review. Companies will have to ensure their environmental messaging aligns not only with internal ESG goals but with consumer protection laws. Legal teams will need to work closely with sustainability officers, marketing departments, and product designers to avoid missteps.
3. Boards and Executives will be held accountable
Senior executives can no longer afford to treat sustainability as a public relations ‘add-on’. Regulatory bodies may demand documentation at the highest levels, including proof of ESG strategy execution. Boards may be expected to monitor environmental claims more proactively, as part of their fiduciary duty.
What consumers stand to gain
This crackdown is good news for consumers, too. The average shopper is more climate-conscious than ever, but they are also overwhelmed by ‘green noise’: a barrage of eco-claims that are often hard to interpret or verify.
Stronger regulation ensures that when a label says “100% recycled” or “climate neutral”, it actually means something. This enables consumers to make informed choices, builds trust in sustainable markets, and increases demand for genuinely responsible products and services.
Moreover, it signals that sustainability is no longer optional: it's becoming a baseline expectation, not a niche market.
The opportunity for industry leadership
While the threat of fines will no doubt encourage better compliance, the most forward-thinking businesses will see this as an opportunity - not a punishment.
Companies that prioritise transparency, rigorous ESG metrics, and authentic climate action will not only avoid penalties, but build brand loyalty and outperform ‘stragglers’ in the long run.
In a world where both investors and consumers demand integrity, environmental honesty is a valuable currency.
There’s also an opportunity for innovation.
Companies that embed sustainability into their core business models - rather than treat it as a ‘bolt-on’ - will be better positioned to thrive in a low-carbon economy. This includes everything from circular design and regenerative agriculture to low-emission logistics and climate-aligned investment.
So… are fines enough?
Some campaigners argue that while fines are necessary, they’re not sufficient. Greenwashing, they say, is a symptom of a broader issue: the absence of clear, standardised definitions and benchmarks for sustainability claims.
- What does “carbon neutral” really mean?
- How is “net-zero” calculated?
- Can an airline ever really offer “eco-friendly flights”?
To address this, there are growing calls for international standards and labelling frameworks, similar to nutrition labels in the food industry. Such tools could provide clear, digestible information about a product’s environmental impact, and hold companies to account across borders.
Until such frameworks are widely adopted, regulators like the CMA will play a vital role in ensuring that companies don’t stretch the truth or exploit ambiguity for profit.
The road ahead
The crackdown on greenwashing marks a pivotal shift in the climate conversation. It’s a reminder that words matter, especially when they shape public perception and influence market behaviour. For too long, sustainability has been used as a marketing strategy rather than a moral imperative. That era is ending.
In the UK, companies now face a simple choice: clean up your claims - or pay the price.
The world is watching, and consumers are no longer content with empty promises. They want action. Transparency. Accountability. And, above all, they -and all at PRL - want truth.
Carl Dodd, Property Revolutions Ltd.
