The Australian Competition and Consumer Commission (ACCC) has published new regulatory guidelines to help businesses make accurate and transparent greenhouse gas emissions claims to consumers.
Titled Making emissions claims to consumers – a guide for business, the publication advises companies to adopt credible, science-based accounting standards, maintain full transparency regarding the use of carbon offsets, and ensure claims are easily understood by the general public.
The guidance builds on the regulator’s 2023 environmental claims framework and targets voluntary marketing statements that risk breaching the Australian Consumer Law. False or misleading sustainability claims remain a primary compliance and enforcement priority for the watchdog.
Key compliance expectations outlined in the new framework include:
- Accounting standards: Businesses must base claims on complete, reputable, and clear emissions accounting while avoiding double counting.
- Offset transparency: Companies relying on carbon credits must distinguish between direct emissions reductions and offset purchases, ensuring consumers are not misled into believing the two methods are inherently equivalent.
- Forward-looking statements: Future net-zero or reduction targets must be backed by reasonable, verifiable grounds at the time the claim is made.
- Specific messaging: Marketing material must avoid broad, vague, or non-specific terminology, explicitly differentiating between voluntary corporate efforts, legal obligations, and broader industry trends.
ACCC Deputy Chair Mick Keogh stated that greenwashing disadvantages ethical businesses that invest in genuine sustainability while undermining consumer trust. He urged companies to review their marketing claims, update messaging, or gather stronger supporting evidence where necessary.
The regulator noted positive shifts among large corporations across aviation, energy, logistics, and telecommunications since 2023. Many firms have moved away from broad “carbon neutral” assertions towards transparent disclosures regarding real-world environmental impacts and credit reliance.
The enforcement push aligns with parallel oversight by the Australian Securities and Investments Commission (ASIC), which regulates sustainability claims tied to financial products. Recent ACCC legal actions include an $8.25 million (£4.2 million) court penalty against Clorox Australia over misleading “ocean plastic” claims, alongside active Federal Court proceedings against Australian Gas Networks and sunscreen manufacturer Edgewell Personal Care over alleged greenwashing.
