Sustainable Marketing: What’s happening right now?

Marketers are navigating a constantly evolving operating landscape, with technology (particularly AI) and sustainability dominating the conversation. Professionals across all industries have a significant role to play when it comes to sustainability. This article explores the latest developments in this space and the reasons we all need to stay aware and up to date.   

The regulations and guidelines surrounding green claims are tightening,  and  new sustainability reporting requirements are soon to be introduced. There has also been a sharp increase in sustainability-related roles and the demand for skillsets in this space.

CIM recently launched a new version of their Sustainability Skills Gap Report. CIM members can download the report now to access the latest insights on sustainable marketing, key case studies and stories from leading brands as well as tools and advice to help marketers looking to upskill.  

What’s happening right now? 

Since the introduction of the ‘Green Claims Code’ in early 2022 by the Competition and Markets Authority (CMA), which provides protection for consumers against misleading environmental claims, there has been increased scrutiny of organisations’ sustainability messaging.  

This has also resulted in the Advertising Standards Agency (ASA) tightening the CAP Code, which is the rule book for advertising, promotions and direct marketing. The most recent update to the guidance took place on 23 June 2023, and as part of this update, the ASA stated its intention to continue to take a firm but balanced approach to greenwashing.  

This guidance states: “Environmental claims are likely to mislead if the basis of the claim is not clear… Marketers must consider consumers’ likely interpretation of a claim. Where general claims could be interpreted as absolute claims, or have multiple possible interpretations, additional information is required to make the meaning of the claim clear.”  

The update also contains further guidance on substantiating claims, including how absolute claims, such as ‘sustainable’ or ‘environmentally friendly’ must be supported by a high level of substantiation.   

More information about these updates, as well as a summary of key advice can be found here. 

Rises in banned ads as greenwashing continues 

Despite the introduction of the Green Claims Code, there has been a notable increase in the number of organisations that have seen their ads banned for failing to comply with regulations. That includes making misleading or false claims, or making claims they cannot substantiate sufficiently.    

Under the proposed  Digital Markets, Competition and Consumer Bill, published on 26 April 2023, the CMA would have direct enforcement powers, allowing them to impose directions and fines without having to go through the courts. While green claims aren’t explicitly stated in the bill, it covers, ‘behaviour likely to cause the average consumer to take a “transactional decision” that they would not have otherwise taken, for example, through misleading actions or omissions.’ This means the CMA is unlikely to face any pushback in enforcing this in relation to unsubstantiated green claims.  

The fines proposed are as follows:  

• up to £300,000, or 10% of a business’s annual turnover (whichever is higher), for breaching consumer laws; 
• up to 5% of a business’s annual global turnover, with an additional daily penalty of 5% of daily turnover during non-compliance, for failing to comply with a direction.     

While greenwashing is the responsibility of the organisation as a whole, it places particular pressure on marketers, as they are the primary communicators of a business. This makes it even more critical for marketers to stay informed and aware of ongoing developments. One effective way to do this is to check in with the latest greenwashing cases. Both the CMA and ASA publicly share what they are investigating, along with case results, providing valuable insights into what to do – and what to avoid.

Greenhushing – the other side of greenwashing 

Awareness and external pressures from customers, employees, and investors continue to push organisations to develop credible and robust sustainable development plans. However, many industries and organisations, faced with increasing regulation and tighter guidelines on green claims, are opting to remain silent about their environmental strategies, plans, and actions for fear of being accused of greenwashing. 

This trend is reflected in research from CIM’s recent Sustainability Skills Gap Report, which found that while regulatory changes are positive for the environment,  they have negatively impacted marketing professionals’ attitudes towards sustainability campaigns. Nearly half (49%) of marketers said they are wary of working on them due to fears of their company or clients being accused of greenwashing.  

However, now is not the time to keep quiet about sustainability. Businesses play a critical role as drivers of change. As long as your claims are genuine, authentic, and backed up by solid evidence, you should be shouting about them and encouraging other organisations to follow suit.  

Sustainability reporting

In addition to increased regulation, there has been significant focus on sustainability reporting. Unlike financial reporting, sustainability reporting has not been a standard requirement – until now. 

In June 2023, the International Sustainability Standards Board (ISSB) issued its first sustainability-related disclosure to standards, which took effect in January 2024.  These standards build on existing frameworks and aim to reinforce the connection between sustainability disclosures, financial statements, and their overall implications for financial performance.

The ISSB was established in November 2021 at COP26 with the aim to deliver a global baseline of sustainability disclosures that meet capital market needs.  

To learn more, head to The International Reporting Standards’ (IFRS) website for ten things you need to know about the ISSB’s new standards. 

A single global standard for environmental disclosure will allow for broader adoption by companies and should reduce the number of standards a company must report against.  

The IFRS believes that these new standards “and the ISSB’s capacity building programme will help build trust, confidence and much-needed global comparability to the sustainability disclosure landscape.”  

Final thoughts

With new guidelines around regulation and reporting, organisations will find it increasingly difficult to delay implementing sustainability development plans. 

Marketers at all levels and across all roles have a responsibility to ensure they are aware and up to date with what is happening, especially when it comes to communicating about what their organisations are doing in relation to sustainability.   

If you are looking to keep your skills and knowledge up-to-date, CIM has a range of training courses and qualifications designed to help you on your sustainable marketing journey.