Yahoo Finance CMA greenwashing probe: Asda, Asos and Boohoo promise clarity on eco-claims
Top fashion retailers Asos, Boohoo and George at Asda, have signed undertakings to clarify the way they promote and display their environmental credentials, the competition watchdog has said.
Today’s announcement follows a 2022 investigation by the Competitions and Markets Authority (CMA) into the trio to scrutinise their fashion ‘green’ claims amid fears of greenwashing.
Some of the undertakings include the firms no longer using natural imagery – such as green leaves – logos, or icons in a way that suggests a product is more environmentally friendly than it actually is.
Statements made about materials in green ranges also must be specific and clear, such as ‘organic’ or ‘recycled’, rather than ambiguous – e.g., using terms like ‘eco’ ‘responsible’, or ‘sustainable’ without further explanation.
Also criteria used to decide which products are included in environmental collections – such as Asos’s former ‘Responsible edit’, Boohoo’s ‘Ready for the Future’ range, and George at Asda’s ‘George for Good’, and any further ranges – must be clearly set out and detail any minimum requirements.
For example, the CMA said, if products need to contain a certain percentage of recycled fibres to be included in the range, this should be made clear.
“Products must not be marketed or labelled as part of an environmental range unless they meet all the relevant criteria,” it added.
Sarah Cardell, chief executive at the CMA, said: “Following our action, the millions of people who shop with these well-known businesses can now have confidence in the green claims they see.
“This also marks a turning point for the industry. The commitments set a benchmark for how fashion retailers should be marketing their products, and we expect the sector as a whole – from high street to designer brands – to take note and review their own practices.”
Asos, Boohoo and Geroge at Asda makeover £4.4bn annually from UK fashion sales alone.
Fashion brands have faced heightened scrutiny for their sustainability practices in recent years following concerns about how the over consumption of clothes is gravely impacting the environment.
John Lyttle, chief of boohoo group plc, said: “I’m pleased that we have been able to reach an agreement with the CMA following its investigation into environmental claims.
“Along with the other retailers who have been a part of this process, we have chosen to sign a set of undertakings that will provide some helpful clarity on how the CMAs green claims code operates in practice.
“We remain committed to working with others to find collective solutions to the shared challenges of sustainability within the fashion industry.”
An Asda spokesperson said:“We have proactively engaged with the CMA throughout this process and are pleased to have mutually agreed the voluntary undertakings.
“We support any measures aimed at improving consumers’ understanding of environmental claims and providing clear and consistent guidelines to the fashion industry as a whole regarding the future use of such claims.”
City A.M has contacted Asos for a response.
