Green Claims Glossary

A California law that requires companies operating in the state and making claims such as net zero, carbon neutral or significant emissions reductions to publish information on their website about how those claims are achieved, including details of any carbon offsets used.

Guidance from the Australian Competition and Consumer Commission, published in December 2023, on making environmental claims under the Australian Consumer Law.

The Dutch competition and consumer authority.

Italy's competition and consumer protection authority.

France's financial markets regulator.

The UK's independent advertising regulator.

Australia's corporate, markets and financial services regulator.

A claim that states or implies an environmental benefit without limits, such as "zero impact", "100% sustainable" or "planet-friendly".

The requirement that an emissions reduction or removal would not have occurred without the specific intervention being claimed.

An independent process intended to increase confidence in sustainability information through review, testing, or verification.

The legal benchmark used in EU and UK consumer law: a reasonably well-informed, observant and circumspect person.

A distinction between emissions avoidance (preventing future emissions, such as protecting a forest) and emissions removal (actively removing carbon dioxide from the atmosphere).

A certification awarded by the non-profit B Lab to companies that meet its standards of social and environmental performance, accountability and transparency.

Germany's financial supervisory authority.

The year against which emissions reductions or other performance changes are measured.

Actions or investments that reduce or remove emissions outside a company's own value chain, such as funding climate projects, taken in addition to cutting its own emissions.

Made wholly or partly from materials derived from living organisms, such as plants, rather than fossil resources.

The ability of a material to break down through biological activity.

The variability among living organisms from all sources, including terrestrial, marine, and other aquatic ecosystems, and the ecological complexes of which they are part.

The defined limits of a sustainability claim, including organisational scope, geography, lifecycle stage, time period, and activities included or excluded.

The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing, written by the Committee of Advertising Practice and enforced by the ASA.

The EU Carbon Border Adjustment Mechanism, which puts a carbon price on certain imports, such as steel, cement, aluminium, fertilisers, electricity and hydrogen, to match the carbon cost paid by EU producers.

A non-profit that runs a global disclosure system on climate, water and forests, and scores companies' responses.

Guidance published by the UK Competition and Markets Authority in 2021 explaining how consumer protection law applies to environmental claims.

A unit that expresses the climate impact of different greenhouse gases as the amount of carbon dioxide that would have the same warming effect over a set period.

The EU network of national consumer protection authorities, coordinated by the European Commission.

The EU Corporate Sustainability Due Diligence Directive on human rights and environmental harms in company value chains.

The EU Corporate Sustainability Reporting Directive, which requires large companies to report on sustainability using the ESRS.

California's chief law officer.

California laws passed in 2023 requiring large companies doing business in the state to disclose greenhouse gas emissions (SB 253) and climate-related financial risks (SB 261).

Provisions of Canada's Competition Act on environmental claims, added by Bill C-59 in 2024.

Technology that captures carbon dioxide from industrial sources or power plants and stores it underground, or uses it in products.

A tradable certificate representing one tonne of carbon dioxide equivalent reduced, avoided or removed from the atmosphere, issued under a carbon crediting programme.

The total greenhouse gas emissions caused by an organisation, product, event or person, expressed in tonnes of carbon dioxide equivalent.

A claim that an activity removes more carbon dioxide from the atmosphere than it emits.

A condition in which carbon dioxide emissions associated with a defined activity or entity are balanced by carbon removals or offsets.

Compensating for greenhouse gas emissions by buying carbon credits that represent emission reductions or removals elsewhere.

Activities that take carbon dioxide out of the atmosphere and store it, such as reforestation, soil carbon, biochar or direct air capture with storage.

Highlighting a single positive environmental attribute while ignoring more significant negative impacts of the same product or business.

An economic model aimed at minimising waste and maximising the reuse, repair, refurbishment, and recycling of materials.

A marketing term suggesting that a product or service has little or no negative effect on the climate.

A claim that an activity, product or company has no net effect on the climate, usually by balancing remaining emissions with offsets or removals.

The potential negative impacts on an organisation arising from climate-related physical risks and transition risks.

New Zealand's competition and consumer regulator.

A claim that compares the environmental performance of a product, service or company with another, or with an earlier version, such as "50% less plastic" or "greener than leading brands".

Capable of breaking down into natural elements under specified composting conditions within a defined timeframe.

A design concept and certification programme for products designed for safe materials, circularity, clean energy, water stewardship and social fairness.

Frameworks and practices intended to ensure fair representation, treatment, and opportunity across gender, ethnicity, disability, and other characteristics.

The UK law that lets the CMA fine businesses up to 10% of global turnover for breaking consumer law, including misleading green claims.

Denmark's consumer protection authority.

Reducing the greenhouse gas emissions of an organisation, product or economy, typically through energy efficiency, electrification and switching to low-carbon energy and materials.

A claim that a product or supply chain has not contributed to the clearing of forests after a defined cut-off date.

A digital record, introduced under the ESPR, that holds information about a product's materials, origin, environmental performance, repair and end-of-life handling, usually accessed through a QR code or similar data carrier.

Technology that removes carbon dioxide directly from the air.

A principle in the EU Taxonomy requiring that an activity contributing to one environmental objective does not significantly harm any of the other environmental objectives.

The situation in which the same environmental benefit, such as a carbon credit, is claimed by more than one party.

A reporting and assessment concept that considers sustainability topics from two perspectives:

An umbrella term referring to environmental, social, and governance topics used in investment, reporting, and risk management contexts.

Guidelines from the European Securities and Markets Authority on EU funds whose names use ESG or sustainability-related terms.

The EU Ecodesign for Sustainable Products Regulation, covering durability, repairability, recycled content and the Digital Product Passport.

The reporting standards used under the CSRD.

The EU's cap-and-trade system for greenhouse gas emissions from power, industry, aviation and maritime transport.

The European Union's official voluntary environmental label, shown as a flower logo.

The EU classification system that defines which economic activities count as environmentally sustainable.

The EU Deforestation Regulation, which requires companies placing certain commodities (cattle, cocoa, coffee, oil palm, rubber, soya and wood, and products made from them) on the EU market to show they are deforestation-free and legally produced.

A common marketing term suggesting that a product or company is good for the environment or has a low environmental impact, without saying how.

The greenhouse gas emissions from producing, transporting, installing and disposing of materials and products, as opposed to emissions from using them.

Emissions measured relative to a unit of output, such as per product, per tonne or per euro of revenue, rather than in absolute terms.

The EU directive that bans generic green claims, offset-based product neutrality claims and uncertified sustainability labels from 27 September 2026.

A claim that a product uses less energy than alternatives to perform the same function.

Any statement, symbol, image, or implication that suggests an environmental benefit or reduced environmental impact.

The three types of environmental labels defined in ISO standards.

An independently verified document that reports quantified life cycle environmental data for a product, based on product category rules and life cycle assessment.

A policy approach that makes producers financially or operationally responsible for the end-of-life management of their products and packaging.

A UK rule in force since 31 May 2024 that applies to all firms authorised by the Financial Conduct Authority.

An international certification system for responsible forest management and the wood and paper products that come from certified forests.

Guidance from the US Federal Trade Commission on how to avoid deceptive environmental marketing.

A trading approach, and certification systems, aimed at better prices, working conditions and terms for producers in developing countries.

A claim about environmental performance a company intends to achieve, such as "net zero by 2040" or "100% recycled packaging by 2030".

The most widely used set of standards for measuring and reporting greenhouse gas emissions.

Widely used global standards for reporting an organisation's impacts on the economy, environment and people.

A broad environmental statement that does not specify what it refers to, such as "eco-friendly", "green", "nature's friend", "climate friendly" or "environmentally responsible".

A bond whose proceeds are used to finance environmental projects.

A proposed EU law on substantiating green claims that the Commission moved to withdraw in 2025; it has not been adopted.

Gases that trap heat in the atmosphere, including carbon dioxide, methane, nitrous oxide and fluorinated gases.

The deliberate under-reporting or concealment of sustainability actions or performance to avoid scrutiny or criticism.

Using labels, terms or product names that make a product sound more sustainable than it is, such as calling a product "green" or "eco" based on a minor feature.

Drawing attention to a small green initiative, product line or feature to distract from a company's much larger environmentally harmful activities.

The repeated revision, delay, or dilution of sustainability targets or commitments without transparent explanation or updated evidence.

Shifting responsibility for environmental problems onto consumers, for example by implying that pollution is mainly the result of consumer behaviour rather than company decisions.

The practice of making environmental claims that are misleading, exaggerated, unsupported, or omit material information.

A claim that presents a product as environmentally preferable based on a narrow set of attributes, without disclosing other important environmental impacts.

The process companies use to identify, prevent, mitigate and account for human rights impacts in their operations and supply chains, as set out in the UN Guiding Principles on Business and Human Rights.

Italy's advertising self-regulatory body.

A set of principles from the Integrity Council for the Voluntary Carbon Market for identifying high-integrity carbon credits.

The international standard for environmental management systems.

The international standard for self-declared environmental claims (Type II environmental labelling).

A series of international standards for quantifying, reporting and verifying greenhouse gas emissions and removals at organisation and project level.

The international standard for carbon neutrality, published in 2023.

Sustainability disclosure standards issued by the International Sustainability Standards Board in 2023: IFRS S1 on general sustainability-related financial information and IFRS S2 on climate.

Investing with the intention of creating measurable positive social or environmental impact alongside a financial return.

An environmental message conveyed indirectly, through images, colours, symbols, product names or context, rather than in words.

Emission reductions or removals made within a company's own value chain, for example by supporting regenerative farming among its suppliers, rather than buying offsets from unrelated projects.

A shorter-term target, such as for 2030, set on the way to a long-term goal like net zero.

A price a company assigns to its own greenhouse gas emissions to guide investment and business decisions.

Belgium's advertising self-regulatory body.

The principle that the move to a low-carbon economy should be fair to workers and communities affected, for example through retraining and social support.

Sweden's consumer protection authority, which enforces marketing law, including rules against misleading environmental claims.

When an emissions reduction in one place causes emissions to increase somewhere else, for example when protecting one forest shifts logging to another area.

A method for assessing the environmental impacts of a product across its life cycle, from raw materials to end of life.

All stages of a product’s existence, from raw material extraction through production, distribution, use, and end-of-life.

A wage sufficient to provide a worker and their family with a decent standard of living, beyond minimum legal requirements.

A French law adopted in 2021.

A claim that a product, service or energy source has lower greenhouse gas emissions than an alternative.

Two methods for calculating Scope 2 emissions from purchased electricity.

An accounting method used to track sustainability characteristics of materials through complex supply chains where physical segregation is not feasible.

The threshold at which information becomes significant enough to influence decisions or assessments.

A powerful greenhouse gas released from fossil fuel production, agriculture, landfills and other sources.

Leaving out or hiding information that consumers need to make an informed decision, so that a claim creates a false impression even if what is said is true.

The presence of forced labour, bonded labour, or human trafficking within operations or supply chains.

A claim that a product or ingredient comes from nature or is minimally processed.

A goal or claim of halting and reversing nature loss, so that ecosystems and biodiversity are measurably recovering compared with a baseline.

Actions that protect, restore or manage natural ecosystems to address challenges such as climate change, for example reforestation or wetland restoration.

Risk to an organisation arising from dependence on or impact to natural systems, including biodiversity loss, water scarcity, and land-use change.

A state in which greenhouse gas emissions are reduced as far as possible and remaining emissions are balanced by removals over a defined timeframe.

The chief legal officer of New York State.

Plastic waste collected in coastal areas at risk of entering the ocean, as opposed to plastic actually recovered from the sea.

Produced according to organic farming rules.

A former British Standards Institution specification for demonstrating carbon neutrality.

The EU Packaging and Packaging Waste Regulation, applying from 12 August 2026, with rules on recyclability, recycled content and labelling.

A claim that a company's targets, strategy or investments are consistent with the Paris Agreement goal of limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C.

How long the carbon stored by a removal or protected by an avoidance project is expected to stay out of the atmosphere, and the risk of it being released, for example by forest fire.

Designing a product so that it fails, becomes outdated or cannot be repaired sooner than necessary.

A claim that a product or its packaging contains no plastic.

A long-term contract to buy electricity, often from a specific renewable energy project.

Under the SFDR, the most significant negative effects of investment decisions on sustainability factors, such as emissions or human rights, which certain financial firms must disclose.

The greenhouse gas emissions associated with a product across its life cycle, or a defined part of it.

Rules that set how to carry out a life cycle assessment and create an Environmental Product Declaration for a specific product category.

The European Commission's harmonised life cycle method for measuring the environmental performance of products, covering 16 impact categories.

Claims that a product is designed to last, be repairable, or resist premature obsolescence.

A claim that includes the conditions or limits needed to make it accurate, for example "bottle made from 50% recycled plastic, excluding cap and label".

A framework for reducing emissions by protecting forests, often used to generate carbon credits from avoided deforestation.

Capable of being collected, sorted, and reprocessed into new material through existing recycling systems.

The proportion of material derived from recycled sources, including pre-consumer and post-consumer material.

Farming practices intended to restore soil health, biodiversity and water cycles, such as reduced tillage, cover crops and crop rotation.

A certificate proving that one megawatt-hour of electricity was generated from a renewable source.

A claim that a product, site or company uses electricity from renewable sources.

How easily a product can be repaired, including the availability of spare parts, tools, repair information and repair services.

The greenhouse gas emissions that remain after a company has cut its emissions as far as is feasible.

A claim that materials or ingredients have been obtained in a way that limits environmental or social harm.

Designed to be used again for the same purpose multiple times, such as refillable bottles or reusable packaging.

An EU directive adopted in 2024 that promotes the repair of goods.

The Science Based Targets initiative's framework for companies setting net zero targets.

The US federal regulator for securities markets.

A US federal rule adopted by the SEC in March 2024 requiring listed companies to disclose certain climate-related risks and, for some, greenhouse gas emissions.

The EU Sustainable Finance Disclosure Regulation, which sets sustainability disclosure rules for funds and financial products.

Emissions reduction targets aligned with pathways consistent with limiting global warming to 1.5°C.

Categories used to classify greenhouse gas emissions across operations and value chains.

Overstating or misrepresenting a company's social performance, such as labour standards, diversity, community impact or fair pay.

The evidence, data, or documentation required to demonstrate that a claim is truthful and accurate.

In a corporate context, the management of environmental and social impacts in support of long-term organisational viability.

Any statement that implies responsible environmental or social performance.

The UK Financial Conduct Authority's regime for sustainable investment products.

A trust mark, quality mark or similar symbol that highlights or promotes a product, process or business based on its environmental or social characteristics.

A bond or loan whose financial terms change depending on whether the issuer meets set sustainability targets.

Jet fuel made from non-fossil sources, such as waste oils or synthetic processes, that can reduce lifecycle emissions compared with conventional kerosene.

A framework for disclosing climate-related risks and opportunities across governance, strategy, risk management, and metrics and targets.

A framework designed to help organisations identify and disclose nature-related risks and opportunities.

Confirmation by an independent body that a product, process or organisation meets the requirements of a defined standard or scheme.

The ability to track materials or attributes through defined stages of the supply chain.

A documented roadmap outlining how an organisation intends to move toward lower-impact operations.

The EU consumer protection law against misleading commercial practices, including misleading environmental claims.

Reusing waste materials or by-products to create products of higher value or quality, without fully breaking them down.

Guidance from the Voluntary Carbon Markets Integrity Initiative on how companies can credibly make claims about using carbon credits alongside their own emission reductions.

The evaluation of sustainability claims against defined criteria to assess clarity, evidence, and risk of misinterpretation.

A claim that a product or activity produces no greenhouse gas or pollutant emissions.

A claim that a product, process or site sends no waste to landfill or incineration, or produces no waste at all.