Starting Monday, companies that exaggerate or falsify their environmental credentials will face massive financial consequences under sweeping new powers granted to the Competition and Markets Authority (CMA). For the first time, UK regulators can impose fines of up to 10% of a company’s global turnover or a minimum of £300,000 for misleading climate claims. That’s a seismic jump from the previous ceiling, where most fines barely scratched the £1 million mark.
This dramatic shift could shake the foundations of corporate sustainability marketing, sending a clear message: vague eco promises won’t cut it anymore.
“For far too long, large corporations have gotten away with rampant greenwashing,” said Maddy Haughton-Boakes, senior campaigner at the Changing Markets Foundation. “It’s allowed them to continue their climate-wrecking practices while exploiting climate-conscious consumers.”
She added that the CMA’s tougher stance “should act as a deterrent to companies hoping to dupe consumers” and serve as a wake-up call to prioritize real, measurable action to reduce emissions.
The UK’s move isn’t happening in a vacuum. It follows growing global frustration with the gap between companies’ green promises and their actual environmental impact.
Just this week, German regulators slapped DWS, a Deutsche Bank-owned asset manager, with a €25 million (£21 million) fine. The firm had touted its environmental and social investing credentials, but investigators found these claims were misleading. The penalty marked one of Europe’s highest-profile greenwashing crackdowns to date.
These developments reflect a broader reckoning in how regulators are tackling climate-related deception, especially as consumers grow savvier and more skeptical of corporate sustainability jargon.
Phrases like “carbon-neutral,” “eco-friendly,” or “net zero” are now under intense scrutiny. The CMA’s new enforcement powers signal the start of a more aggressive era of climate accountability, where companies will be expected to back up every green label with hard evidence.
Critics say many brands have used vague or unverified eco-labels to ride the wave of public concern over the climate crisis, while doing little to change their core operations. Now, with fines that could run into the tens or even hundreds of millions, businesses may think twice before slapping a leaf on their packaging or boasting about “sustainable sourcing” without proof.
As climate disasters intensify and public demand for transparency grows, regulators worldwide are beginning to close in on companies using green claims as a smokescreen. The UK’s bold move could become a blueprint for other nations looking to restore trust in sustainability and make corporate climate action more than just a marketing ploy.
The question now is whether businesses will adapt with honesty and urgency, or get caught in the crackdown.
Photo by Tanaonte from Getty Images
