Out with the old, in with the new: New AANA Environmental Claims Code comes into force targeting greenwashing in Australia

This rule emphasises that the “overall impression” created by the advertisement should not be false or inaccurate, or misleading to the Target Consumer. The Practice Note that accompanies the New Code that the overall impression of an advertisement can be misleading, even if the individual claims are factually correct. The Practice Note also emphasises the need for businesses ensure that Environmental Claims remain valid across the life of the advertisement or campaign, given the constantly evolving regulation, research and consumer understanding in this space.

This rule requires advertisers to have reasonable grounds for making a claim at the time it is made, based on evidence held at the time of the claim. The Practice Note provides additional guidance on a number of common types of claims such as:

• Scientific claims: These should be “consistent with the body of evidence, not simply selective parts that can be used in a misleading way”.
• Life cycle claims: If an Environmental Claim relates only to part of the life cycle of a product or service, this should be clearly explained. While advertisers do not necessarily need to provide a full life cycle assessment in every claim, this is subject to the overall impression conveyed to the Target Audience, with broader claims likely to require consideration of life cycle implications.
• Compostable claims: These should be supported by reliable evidence (such as a current certification).

This rule specifies that claims must:

• Be in clear language (having regard to the Target Customer). Scientific terminology or references should be relevant and accurate, and where technical claims are used (such as ‘recyclable’), industry standards should be adhered to.
• Be specific, avoiding overbroad or unqualified claims. Vague claims – such as “eco friendly”, “green” or “sustainable”, without any limitation – may be more easily misleading.
• Clearly include any important limitations, conditions or qualifications. Following on from Ad Standards’ decision to uphold a complaint against Aldi in relation to a "100% renewable electricity” claim,² the Practice Note explains that absolute or broad claims that require qualification to be true should not be made without that qualification, including for example claims such as “Renewable” or “Produced with renewable energy”.
• The Practice Note explains that this does not prevent advertisers from offering additional information via website links, QR codes or other means. However, as with all fine print/disclaimers, this additional information should support, not contradict, the overall message conveyed by the advertisement.

The New Code requires that Environment Claims must be about a genuine benefit to the environment, that is not overstated. As an example, this includes not advertising that, in essence, the product merely complies with the law (unless that is made clear). Again, factual claims of a benefit can still be misleading in certain circumstances (e.g. when a minor benefit is represented as more important than it is).

Advertising about future environmental objectives must be based on reasonable grounds at the time the claim is made. This includes verifiable data, clear plans and reliance on accepted methodology, and claims should be reviewed and revised to reflect any changes in the underlying data or plans.