Business: Greenwashing

Lord Clark of Windermere Excerpts

Tuesday 10th January 2023 Lords Chamber

[Lord Callanan (Con)]

I know that my noble friend is very interested in this important subject; we have discussed it before. The problem we have is that many businesses make environmental claims about their sustainability and that others publish information in their annual reports—often voluntarily; there is, in some respects, no legal obligation to do so—so the question is about how investors can get transferability across different companies and compare one company against another. There may be a case for some standardisation and regulations in this space, but of course we need to look at the business impacts.

[Lord Clark of Windermere (Lab)]

My Lords—

[Baroness Hayman (CB)]

My Lords—

--- Later in debate ---

[Lord Callanan (Con)]

The ASA has taken action against a number of companies, including one that made green artificial grass, over their environmental claims. I think this is a very real deterrent to businesses repeating unfair advertising, but I know that the CMA is looking at a number of different sectors: it has already published an investigation into the fashion sector and is moving its investigations on to other areas of the economy as well.

[Lord Clark of Windermere (Lab)]

My Lords, the noble Lord mentioned that the Competition and Markets Authority has issued its green claims code, under which it has the power to take errant companies to court. Have any actually been taken to court?

[Lord Callanan (Con)]

The noble Lord is right: the CMA published its guidance in September 2021. Enforcement of unfair claims and misleading advertising is a matter for trading standards. I am not aware of any claims that have been taken to court but, if there are any actions I can point him to, I will write to him.