UK CMA flags supplier greenwashing risk
The UK Competition and Markets Authority warned retailers about supplier greenwashing risk and implied growing liability around Scope‑3 claims as regulators scrutinise a $100 billion market, signalling tougher enforcement on product and supply‑chain claims. Retailers and their banking partners must tighten supplier disclosure and verify Scope‑3 assertions to avoid regulatory action. (x.com/7okesh/status/2038983993652306100)
The CMA published new supply‑chain guidance titled "Making green claims: Getting it right across the supply chain" on 22 January 2026 to supplement its 2021 Green Claims Code. (gov.uk) The guidance clarifies that environmental claims attached to a product — including statements about how it was made, transported or disposed of — remain part of that product’s marketing journey and can be treated as a claim by any downstream business that repeats or relies on them. (brownejacobson.com) Under the Digital Markets, Competition and Consumers Act 2024 the CMA can now levy fines of up to 10% of global turnover for breaches of consumer law, a power the guidance says the authority will use and will prioritise cases showing systemic governance or compliance failures. (fieldfisher.com) The guidance expects retailers and distributors to take “reasonable steps” to verify supplier assertions and sets out a risk‑based approach where the CMA will target parties with the greatest control over how claims are presented. (whitecase.com) The CMA’s shift follows earlier enforcement activity, including undertakings secured from ASOS, Boohoo and George at Asda in 2024, signalling that consumer‑facing brands have been primary enforcement targets to date. (mayerbrown.com) Parallel rules for financial firms — notably the FCA’s anti‑greenwashing rule (ESG 4.3.1) and its finalised guidance FG24/3 — plus Advertising Standards Authority rulings against banks show lenders and asset managers are already subject to scrutiny when sustainability claims are used in financial marketing or product documentation. (fca.org.uk) Practical compliance steps highlighted across legal and industry briefings include adding contractual verification and data‑sharing clauses with suppliers, embedding proportionate due diligence in procurement, and considering sector‑level collaborative approaches where the CMA has indicated it may allow standardised initiatives under its Green Agreements guidance. (foxwilliams.com)
