Reference · 10 min read
On 12 December 2023 the Australian Competition and Consumer Commission published its final guidance, Making environmental claims: A guide for business. These are the eight principles the regulator uses when assessing whether a sustainability claim is misleading.1
The principle titles below are quoted verbatim from the ACCC's 12 December 2023 media release (release 160/23). The plain-English commentary, the 'how to apply' notes and the examples are our own.
Every claim — words, numbers, symbols, images — must be capable of being substantiated and must not give a misleading overall impression.
How to apply it
Before publishing a claim, write down the evidence you'd point to if the regulator asked. If you can't, don't publish it.
Example
Don't write 'made with renewable energy' if only the head office runs on renewables and the factory does not.
The ACCC expects businesses to hold reasonable substantiation before making a claim — third-party verification, lifecycle data, or documented internal methodology.
How to apply it
Keep a one-page evidence note for each environmental claim on your website, with the source and the date it was last verified.
Example
A 'carbon neutral' claim should be backed by a calculation against a recognised standard (e.g. Climate Active) and dated within the current period.
Disclaimers buried in tiny text or on a separate page do not cure a misleading headline claim. Material information must be presented prominently enough to be likely to be seen.
How to apply it
Place qualifications near the claim itself, in comparable typography and weight — not in the footer.
Example
'Recyclable*' with the asterisk taking the reader to a separate page explaining it's only recyclable at a specialist facility is the kind of disclosure the ACCC flags as inadequate.
Where a benefit only applies in certain conditions (specific products, specific regions, certain disposal pathways), say so on the claim itself.
How to apply it
Use plain language: 'This product is recyclable in NSW kerbside collections only' is clearer than 'Recyclable*'.
Example
A 'compostable' claim should specify whether it's home compostable or only industrial compostable — and where industrial composting is actually available.
Unqualified words like 'green', 'eco', 'sustainable', 'environmentally friendly', or 'ethical' carry a meaning the average consumer interprets broadly. Without specifics, they almost always overstate the benefit.
How to apply it
Replace adjectives with measurable facts. 'Eco-friendly packaging' → 'packaging made from 70% post-consumer recycled paperboard (FSC-certified)'.
Example
'Our most sustainable shoe yet' is itself a relative claim — say what's improved, by how much, and against what.
Technical terms ('Scope 3 offsets', 'biobased', 'circular') confuse readers and shift interpretation onto them. The ACCC asks businesses to explain what a term means in context.
How to apply it
Write for a reader who is interested but not specialist. If you must use a technical term, define it the first time it appears.
Example
If you say 'carbon neutral', explain which emissions are included and whether offsets were used.
Imagery, icons, colours, and look-alike trust marks are part of the representation. A green leaf on a product that has no environmental advantage can mislead even when the text is technically accurate.
How to apply it
Apply the same evidence test to imagery as to words. Don't use look-alike certification symbols unless you actually hold the certification.
Example
Earth-tone packaging plus a leaf icon plus the word 'natural' creates a combined impression of environmental benefit, even if no single element claims it directly.
Forward-looking and aspirational claims ('on a journey to net zero', 'committed to sustainability') must be grounded in a clear, current plan with a reasonable basis. The plan, target date, and progress should be transparent.
How to apply it
Distinguish what you do today, what you have committed to, and what is aspirational. State the year, the scope, and the methodology.
Example
'Net zero by 2030' should be supported by an interim target, a published plan, and recent progress against it — not a single line on the About page.
The eight principles are guidance, not law in themselves. The legal source is the Australian Consumer Law — specifically the prohibition on misleading or deceptive conduct in section 18, and the prohibition on false or misleading representations in sections 29 and 33.2
The guidance is the ACCC's published view of how it interprets those provisions in the context of environmental and sustainability claims. The Federal Court has consistently applied a similar framework when deciding the recent ASIC and ACCC greenwashing cases.3
In practical terms: a claim that fails one or more of the eight principles is more likely to be misleading under the ACL. A claim that satisfies all eight is much harder for a regulator (or a competitor) to challenge.
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Get my assessment →This article is general guidance only. It is not legal advice. The quoted principle titles are ACCC content (released 12 December 2023) and are reproduced under fair dealing for the purpose of education and reporting.