UK's Advertising Regulator Cracks Down On Greenwashing

Businesses are increasingly making environmental assertions as they seek to demonstrate their sustainability credentials to consumers. This trend, however, is leading to tougher measures from national regulators as they increase their focus on such environmental claims in a bid to crackdown on greenwashing.

On June 7, 2023, the UK's advertising regulator, the Advertising Standards Authority ("ASA"), issued a series of rulings banning certain advertisements run by three major energy companies, including Shell plc. The advertisements, which highlighted the companies' clean energy initiatives, were deemed to misleadingly omit material information about the balance of the companies' current activities. The ASA considered that these advertisements breached rules under the UK Code of Broadcast Advertising ("BCAP Code") and the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing ("CAP Code"). The ASA held that the advertisements must not appear in