Written by Eva Mitchell

News of brands getting into hot water over climate and environmental claims is on the rise, raising concerns over the authenticity of corporate ‘eco-friendly’ messaging. 

With greenwashing firmly on the radar of customers, competitors and watchdogs, how can brands ensure they navigate the new territory of sustainability claims without misleading consumers?  

The new Australian Association of National Advertisers (AANA) Environmental Claims Code sets clear standards to help brands remain credible when sharing environmental claims.  

Coming into effect on 1 March 2025, the updated code follows on from the AANA’s first iteration published in May 2018.  

What is new to the code in 2025? 

Since the Environmental Claims Code was originally released in 2018, there has been a considerable increase in brands making climate and sustainability claims, and not all of them are entirely accurate.  

In 2023, the ACCC released its findings from an internet sweep that found more than half of the 247 businesses reviewed made concerning claims about their environmental or sustainability practices. 

AANA has broadened the scope of the new Environmental Claims Code to capture more content forms such as images and audio, while also providing further rules on vague environmental claims as well as future environmental claims.  

The code also aligns closely to the ACCC guidance, reinforcing the need for truthful, clear and substantiated messaging on climate and sustainability.  

Why is this code important for advertisers and brands?  

According to the AANA, the updated code is designed to help foster transparency and trust in environmental marketing.  

AANA CEO Josh Faulks said: “The advertising industry has an important role to play in the fight against greenwashing. By encouraging truthful and accurate environmental claims, we can influence the behavioural change that is necessary to transition to a sustainable future.” 

Last year, IMPACT examined the ramp up in crackdowns on greenwashing in corporate Australia and shared how to communicate your brand’s sustainability efforts with purpose.  

With penalties in the millions, having transparent sustainability credentials is not only a smart reputational choice but it is also now a requirement for large corporations in Australia, with mandatory climate reporting starting in January. This new legislation shows an increased focus on ensuring business owners remain accountable for climate change.  

What are the key rules of the new Code?   

• Truthful and factual: The overall impression created by the advertisement including the Environmental Claim should not be false or inaccurate. The claims should also not be or likely to be misleading or deceptive to the Target Consumer. 

• Supported by evidence: Advertisers should have reasonable grounds for making an Environmental Claim, based on evidence held at the time the claim is made; and not misrepresent third party certifications and validations supporting an Environmental Claim. 

• Be clear not vague: Claims must use clear language, be specific and include important limitations, conditions or qualifications in a way that is clear to the Target Consumer. 

• Genuine benefit to the environment: Advertisers should not make Environmental Claims that exaggerate an environmental benefit or understate an environmental harm. 

• Future claims: Future environmental objectives must be based on reasonable grounds at the time the claim is made.  

Do you need support building your sustainability efforts into impactful communications campaigns? To explore opportunities, contact Nicole Webb at nicole@impactagency.com.au