Sustainability in marketing

In order to comply with the applicable marketing regulations, each claim made, directly or indirectly, by the companies must be true in the strictest sense, and the companies must support these claims with documentation verified, or at least supported, by independent third-party experts.

Customers, especially consumers, are more eco-conscious than ever and are quick to spot misleading claims. As companies’ marketing materials are typically made available to the public at large it entails a high risk of being exposed to non-compliance with applicable marketing regulations.

However, by complying with this regulation, companies not only protect their brand from potential risks but also demonstrate transparency and integrity, which may well strengthen their brand in the long run.

This is why we have assisted companies in this area by, among other things, assessing their marketing material and developing a Playbook for Green Marketing suited to their businesses.

Non-compliance can lead to several risks including:

• Public criticism from national supervisory authorities
• Fines (up to 4% of the annual turnover)
• Compensation claims
• Damage to reputation
• Obligations to retract marketing campaigns or products
• Confiscation of gained revenues

And expected soon with the Green Claims Directive:

• Temporary exclusion for up to 12 months from public procurement processes and access to public funding

Case

We recently assisted a large multinational company by reviewing and assessing a substantial sustainability report that the company planned to publish. The sustainability report described the environmental benefits of using the company’s products, the initiatives the company had already taken to reduce the negative impact that their operations and products have socially, ethically and environmentally as well as how “green” they intended to be over the next decades.

We assisted the company by flagging problematic claims in their sustainability report and informing them of the requirements that they needed to comply with for each claim. We also helped the company adjust their wording to comply with the applicable regulations.

Based on these red flags, we introduced their employees to the governing principles of marketing regulations. Rather than giving a generic introduction to the governing principles, we used specific claims from the sustainability report as examples of the issues caused by each claim and thereby tailored our advice to the specific day-to-day business of the company. 

Contact our specialists

Maiken Toftgaard

Maiken advises international and Danish clients on the regulation of marketing activities, including misleading advertising, documentation requirements and unfair competition. She has extensive experience in assisting clients with avoiding greenwashing when communicating about sustainable initiatives and green or climate friendly products as well as securing the necessary underlying documentation.

Flemming Pristed

Flemming advises Danish and international clients on ESG and sustainability law, including greenwashing risks. His clients include financial institutions and enterprises that are engaged in the green transition. He is an external lecturer at the Faculty of Law of University of Copenhagen in the subjects Financial Law and Sustainability Law.

Nilas Christian Steensen

Nilas advises our industry-leading clients on numerous high-profile consumer and marketing matters with a focus on regulatory compliance. With expertise in advertising standards, consumer protection laws and “green” marketing, he helps clients ensure that their marketing practices are ethical and legally sound.