UK regulator cracks down on FMCG industry greenwashing with Unilever under the microscope

14 Dec 2023 --- The UK Competition and Markets Authority (CMA) has escalated its efforts to curb misleading environmental claims in the consumer goods sector by launching a formal investigation into Unilever’s “green” claims.

In response to the CMA’s announcement, a Unilever spokesperson has expressed “surprise and disappointment” while vehemently denying any misleading claims. 

Key concerns identified by the CMA include vague and broad claims, unclear representations of recyclability and potentially misleading images and logos that could create a false perception of a product’s environmental friendliness. “Certain green claims — particularly in relation to recyclability — may be unclear, as they fail to specify whether they relate to all or part of a product or packaging,” shares the CMA.

“Unilever’s use of colors and imagery — such as green leaves — may create the overall impression that some products are more environmentally friendly than they actually are.”

The authority has also raised questions about how Unilever communicates the naturalness of certain ingredients and whether the company may be overemphasizing the environmental aspects of individual components.

CMA’s CEO, Sarah Cardell, states that the evidence gathered thus far has raised concerns. “We’ll be drilling down into these claims to see if they measure up. If we find they’re greenwashing, we’ll take action to make sure shoppers are protected.”

Unilever shares that it uses On-Pack Recycling Label to provide information on packaging disposal.“Investigation must be a wake-up call”
As the investigation of Unilever unfolds, potential outcomes include securing undertakings from Unilever to change its practices, legal action or closing the case without further intervention. 

“Unilever is committed to making responsible claims about the benefits of our products on our packs and to these being transparent and clear, and we have robust processes in place to make sure any claims can be substantiated,” the FMCG giant’s spokesperson tells us.

“We use the On-Pack Recycling Label to provide consumers with information on how to dispose of our packaging after use, and Unilever is a founding signatory of the UK Plastics Pact, which brings together the entire plastics packaging value chain to tackle the challenges around plastic waste.”

Meanwhile, a November report by Greenpeace found that Unilever sells roughly 1,700 single-use plastic sachets every second. The report also looked at Unilever’s “slow progress” toward meeting its plastics targets and its failing efforts at switching from single-use plastic to reusable solutions. 

Greenpeace analysis revealed that Unilever will likely overshoot this target by nearly a decade to 2034 despite pledging to halve its use of virgin plastic by 2025. 

Packaging Insights reached out to Greenpeace UK about the CMA investigation. Nina Schrank, head of plastics, urged Unilever to take “genuine action” to address sustainability issues, mainly focusing on reducing single-use plastic. 

“This investigation must be a wake-up call for Unilever. People have bought into Unilever’s sustainability claims in good faith, expecting those claims to be more than just smoke and mirrors,” she says.

“The truth is Unilever isn’t living up to that promise, and they never will until the company takes real action to tackle issues like the ruinously huge amounts of single-use plastic they produce. That means committing to phasing out single-use plastic, starting with an end to the billions of highly polluting sachets they’re selling globally each year.”Key concerns identified by the CMA include vague and broad claims, unclear representations of recyclability and potentially misleading images and logos.

Greenwash backlash
The CMA’s scrutiny of Unilever is part of a broader investigation into greenwashing within the FMCG industry. The authority expanded its environmental claims review to include daily essentials, flagging “shoppers paid out more than £140 billion (US$176 billion) in total on FMCG products” last year. 

“Essentials like detergent, kitchen spray and toiletries are the items you put in your supermarket basket every time you shop. More and more people are trying to do their bit to help protect the environment, but we’re worried many are being misled by so-called ‘green’ products that aren’t what they seem,” emphasizes Cardell.

The CMA says it has witnessed positive changes in the FMCG sector following its compliance review, leading to amendments and removal of some green claims by other suppliers. However, the broader investigation remains ongoing, and new inquiries may follow to ensure clarity and transparency in environmental marketing across the industry.

Earlier this year, Packaging Insights revealed Innova Market Insights’ top packaging trends for 2023, with “Green but clean” in the second spot. Consumers want sustainability, but they don’t want to be misled, the market researcher explained.

By Radhika Sikaria