From Claims To Credibility: Making Sustainability Claims Stick

The business case for pursuing sustainable product strategies is clear. NYU Stern studies continue to show that consumer products marketed as ‘sustainable’ grow at more than twice the rate of conventional products. Research conducted by Bain & Company concludes that over half of all B2B customers give more business to sustainable suppliers, with this percentage only likely to increase. Highlighting environmental credentials and claims within advertising campaigns and during negotiations is therefore an obvious step. However, ensuring that any claims made are verifiable is key to achieving regulatory compliance, as well as reducing financial and reputational risk.

Fines for misleading environmental claims remain an ever-present risk to businesses across sectors. Firms that fail to substantiate green claims risk reputational damage, public backlash and non-compliance penalties. Earlier this year the European platform operator for Shein, a fast-fashion e-commerce platform, was fined €1 million by the Italian Competition Authority (AGCM) for using language that was “vague….generic….overly emphatic….misleading….omissive”. AGCM also found that a number of the platform’s references to circular initiatives were ”either false or at least confusing”. More recently, a French court found that TotalEnergies presented misleading statements regarding its energy transition targets and ordered the firm to remove these from its website or face financial penalties.

At the same time, concerns around the standardization of terms have emerged, with a number of organizations forced to remove references to environmental claims in their go-to-market strategies. In the UK, the Advertising Standards Authority ruled that household brands Lacoste, Nike and Superdry had made misleading environmental claims in advertising campaigns through ambiguous phrasing. Unable to effectively demonstrate their environmental credibility in line with the guidance of the Competition and Markets Authority, the  brands were obliged to remove or amend their advertisements.

As firms seek to build trust with both existing and prospective customers, ensuring the verifiability and standardization of sustainability-related claims must remain a key strategic target. Sustainability leaders are now focusing on ‘green guarding’ – a proactive approach that replaces ‘greenhushing’ with transparent, defensible communication, based on rigorous product lifecycle evidence, as well as the attainment of sustainability certifications and third-party verification. By emphasizing the traceability and auditability of claims, businesses can leverage the sustainability credentials of their products in an effective fashion, exploiting the additional opportunities afforded by sustainable goods and services. 

To view Verdantix research on traceability, sustainable product solutions and due diligence, see the upcoming Verdantix Market Trends: Product Level Sustainability Verification report, as well as:

Verdantix Smart Innovators: Sustainable Product And Materials Traceability Software

Verdantix Smart Innovators: LCA Software (2025)

Verdantix Buyer’s Guide: ESG & Sustainability Due Diligence Services (2025)