Greening The Supply Chain: New Guidance From UK Regulators

As part of a broader trend to strengthen regulation and address greenwashing concerns, the UK Competition and Markets Authority (CMA) published new guidance in January 2026, confirming that all businesses could be held liable for misleading environmental claims across their supply chains. Under consumer protection law, businesses will have to ensure that claims made by them, their suppliers or their manufacturers are verified and backed by evidence. Non-compliance, even if unintentional, becomes a real threat as the CMA has power to directly enforce consumer laws and fine businesses up to 10% of their global annual turnover – or £300,000, whichever is greater.

Some relevant insights can be taken from this development:

• UK regulators are taking concrete steps to reduce greenwashing and may continue to emphasize transparency in supply chains.

  The CMA published its Green Claims Code in 2021, following a global review on randomly selected websites that revealed 40% of green claims “could be misleading”. The CMA also investigated how fashion brands ASOS, boohoo and George at Asda are promoting ‘green’ products. As a result of the review, the three brands signed formal agreements in March 2024 to use only clear and accurate green claims. Additionally, the CMA released specific guidance for fashion retail to combat concerns over vague terminology and insufficient evidence. The guidance published in January demonstrates the CMA’s continuous commitment to tackle greenwashing and administer concrete repercussions to non-compliant firms.

• Regulatory pressure encourages risk management strategies that embed supply chain analysis.
  As firms are increasingly required to publicly declare their sustainability commitments and scrutinize claims made by their suppliers and manufacturers, ensuring transparent supply chains has become a necessary risk management strategy. The 2025 global corporate survey from Verdantix highlights that improving traceability and responding to external pressure are significant drivers of investment in supply chain sustainability – as well as how important this investment is for protection from legal and financial risks (see Verdantix Global Corporate Survey 2025: Supply Chain Sustainability Analysis). Firms that can map their supply chains and identify where environmental claims might be misleading can address possible risk with more agility.

• Increased focus on supply chains stresses the importance of a strong sustainability narrative.
  The CMA’s focus on supply chain transparency aligns with a wider trend, where businesses require a strong sustainability narrative that is credible and consistent with their operations. Verdantix research shows that strong narratives can support reputational resilience, improve access to capital and deepen engagement with green-minded customers, among other benefits (see Verdantix Strategic Focus: The Growing Importance Of A Coherent Sustainability Narrative). Where supply chains are aligned with broader narratives and supported with data, businesses will be better equipped to shift trading relationships and avoid greenwashing accusations.

For further insight into supply chain sustainability, read Future Of Supply Chain Sustainability. For more information on the UK regulatory environment, see Strategic Focus: Understanding ESG And Sustainability Regulations In The UK.