Green claims update: March 2026

Welcome to our round-up of the key legal and regulatory developments relating to green claims. If you have any questions about this, or about wider ESG and sustainability regulatory developments, please get in touch.

For future updates, please subscribe here.

Key updates

From factory to shelf: CMA’s new green claims guidance

The CMA has released guidance for businesses on best practice when making green claims across the supply chain. The guidance, to be read alongside the Green Claims Code, contains 5 illustrative examples of different supply chain relationships indicating parties' respective responsibilities and who the CMA would likely enforce against. For example, where retailers stock third-party branded products, the CMA indicates it would most likely pursue the brand for any misleading green claims as it is originally responsible for the claim and is in a better position to remedy the issue. 

New EU era for environmental claims

EU member states are starting to implement new green claims rules under the  Empowering Consumers for the Green Transition Directive into national law. The directive bans certain egregious green claims outright and introduces stricter requirements around forward-looking green claims. Many EU members states, including Germany, France and Italy, have either passed or are currently negotiating draft national legislation to introduce these rules which must come into force by 27 September 2026.

Overhaul of B Corp certification

B Corp has launched a new certification model to strengthen credibility and address criticisms of greenwashing. The previous points-based system which enabled companies to offset poor performance in one area with strengths in another, is being replaced by minimum required standards across seven core impact areas, including climate action, human rights and fair labour. B Corp have also introduced independent verification with applications now being audited by accredited third party bodies. 

UK Sustainability Reporting Standards published

The UK government has published a new set of Sustainability Reporting Standards (UK SRS) introducing more detailed disclosures for companies' annual reports of their material sustainability-related financial risks and opportunities. The UK SRS are currently available for voluntary use however the Government will consult on changes to the Companies Act 2006 to make these disclosures mandatory for certain types of companies (details tbc). The FCA is currently consulting on changes to the UK Listing Rules to introduce the UK SRS for listed companies. The consultation closes on 20 March 2026.

ASA rulings

Lacoste, Nike and Superdry

The ASA has upheld complaints against Lacoste, Nike and Superdry for ads claiming that various lines of clothing were "sustainable". Despite the three retailers providing evidence to show they were taking steps to reduce their carbon footprint, or otherwise use recycled materials, the ASA ruled the ads' unqualified environmental claims were likely to mislead consumers without any information to verify them.

Kit & Kin

The ASA has ruled that Kit & Kin Ltd's website claiming its "eco" nappies and baby wipes were "sustainable", "made from sustainable plant-based materials" and "biodegradable" misled consumers about the products' environmental impact. According to the ASA, the claims were not properly substantiated across the full product lifecycle and did not include adequate information about any negative by-products of the biodegradation process.

Cheeky Panda

The ASA has ruled that Cheeky Panda Ltd breached the CAP Code by misleadingly advertising its bamboo nappies and baby wipes as "sustainable bamboo", "biodegradable" and "kinder to the planet ... protecting the planet". According to the ASA, Cheeky Panda had not provided sufficient evidence around the full life cycle of the products, the basis for the comparative claim "kinder to the planet" was unclear, and the ads contained no information about the biodegradation process for the nappies/ wipes or any by-products.

Sector updates

Consumer brands and retail 

Shein drops online net zero claims in Germany after greenwashing challenge

Shein has dropped its net-zero claims in Germany following a claim brought by the environmental campaign group, Deutsche Umwelthilfe, alleging that Shein's claim of reaching "net-zero greenhouse gas emissions" across its value chain by 2050 was not sufficiently substantiated and was undermined by Shein's 23% increase in greenhouse gas emissions since the previous year. This follows various regulatory fines against Shein for misleading green claims (see our previous update).

Financial services 

FCA publishes guidance around using sustainability labels

The FCA has published examples of good and poor practice for using labels under the UK Sustainability Disclosure Requirements (SDR) regime. The guidance covers all four labels (Focus, Improvers, Impact and Mixed Goals) and is intended to help firms draft pre-contractual disclosures that accurately reflect fund strategies and holdings and assist consumers in navigating more sustainable investment products.