How to Ensure Your Sustainability Claims are Real
In today’s eco-conscious market, consumers, investors and regulators are paying close attention to sustainability claims. Businesses that genuinely commit to sustainability can build stronger customer trust, attract ethical investors and stay ahead of compliance requirements.
But for that to happen, you need to ensure your environmental messaging is backed by real data and tangible action—because if you’re caught greenwashing, the damage to your reputation can be hard to repair.
Here’s how to do it right.
What is Greenwashing?
Have you ever come across a business claiming to be “eco-friendly” or “carbon neutral” but with no real proof to back it up? That’s greenwashing—when companies exaggerate or misrepresent their sustainability efforts to appear more environmentally responsible than they actually are.
It’s a deceptive marketing tactic that misleads customers, and regulators in Australia are cracking down on it. The Australian Securities and Investments Commission (ASIC) has already taken 35 regulatory actions against businesses for misleading environmental claims. So, if your business promotes its sustainability efforts, it’s more important than ever to ensure your claims are transparent, verifiable, and backed by real action.
“Sustainability isn’t a slogan; it’s a commitment backed by data.”
Why Does It Matter?
Greenwashing isn’t just bad for the environment—it’s bad for business, too. Customers today are more eco-conscious than ever, and they won’t hesitate to call out companies that exaggerate their green credentials. Plus, failing to substantiate your claims could lead to regulatory penalties and reputational damage.
ASIC’s Deputy Chair recently highlighted that the best way to avoid misleading claims is to report sustainability initiatives in line with the International Sustainability Standards Board (ISSB) framework. This approach ensures businesses provide clear, credible, and consistent climate-related disclosures.
How to Avoid Greenwashing in Your Business
If your company is on the path to sustainability, that’s fantastic. But how can you promote your progress without falling into the greenwashing trap?
Here are five ways to ensure your environmental claims are genuine:
- Be Transparent & Provide Evidence
Every claim you make—whether it’s reducing emissions, using sustainable materials, or achieving carbon neutrality—should be backed by clear evidence. Publish sustainability reports, share third-party audits, and provide measurable data to support your claims. - Avoid Vague or Misleading Language
Buzzwords like “eco-friendly,” “green,” or “sustainable” don’t mean much without context. Be specific about the actions your business is taking. Instead of saying, “We use sustainable packaging,” specify that “Our packaging is 100% recyclable and made from 80% post-consumer waste.” - Align with Recognised Standards
To build credibility, follow established sustainability reporting frameworks such as the International Sustainability Standards Board (ISSB), the Global Reporting Initiative (GRI) and the Science-Based Targets Initiative (SBTi). These frameworks ensure your reporting is standardised and trusted by investors, regulators and customers alike. - Engage Experts for Accurate Reporting
While accountants are typically associated with financial reporting, they also play a crucial role in non-financial reporting, including sustainability. Management accountants help businesses collect, verify, and report sustainability data accurately, ensuring claims are both credible and legally compliant. - Show Continuous Progress
While accountants are typically associated with financial reporting, they also play a crucial role in non-financial reporting, including sustainability. Management accountants help businesses collect, verify, and report sustainability data accurately, ensuring claims are both credible and legally compliant.
Need help with your Sustainability Reporting?
We help Australian SMEs with carbon accounting, helping businesses make genuine progress without the risk of greenwashing.
Want to get it right?
Give us a call on (02) 8188 9019 or fill out our enquiry form. Let’s work together to make real, measurable change for your business and the planet.
Check out our other blogs on carbon accounting: Carbon Accounting 101: A Beginner’s Guide for Australian SMEs, What is Carbon Accounting? and Scope 1, 2 and 3 Emissions: A Guide to Smarter Carbon Management.
