Sustainability in marketing

Being “green” has become an important competitive parameter, and many companies wish to brand themselves or their products as sustainable, “green,” environmentally friendly, etc. To many companies, the real value of their “green” initiatives lies in being able to effectively communicating how “green” the company or its products are to potential customers through marketing campaigns and similar efforts.

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, this entails a high risk of being exposed for 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.
That is why we have assisted companies in this area inter alia by 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 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 undertaken to reduce the negative impact 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 they needed to comply with for each claim. Additionally, we helped the company adjust their wording to comply with the applicable regulation.

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 each claims caused, thereby tailoring our advice to the specific day-to-day business of the company.

Contact our specialists

Maiken Toftgaard

Maiken advices foreign and domestic clients on the regulation of marketing activities, including misleading advertising, documentation requirements and unfair competition. She has extensive experience with 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 are financial institutions and enterprises that are engaged in the green transition. He is an external lecturer at the University of Copenhagen, Faculty of Law, 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 an expertise in advertising standards, consumer protection laws, and “green” marketing, he helps clients ensure that their marketing practices are ethical and legally sound.