Greenwashing Under the Spotlight: What the ACCC’s Latest Actions Mean for Australian Businesses

Today’s headlines have brought greenwashing back to the centre of Australia’s sustainability conversation. The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Edgewell Personal Care Company, the owner of Banana Boat and Hawaiian Tropic, alleging the company misled consumers by marketing its sunscreens as “reef friendly”—without scientific substantiation or credible evidence. This is not an isolated incident, but part of a broader regulatory crackdown that should serve as a wake-up call for all Australian businesses.

Why the ACCC Is Taking Action

The ACCC alleges that Edgewell continued to claim its products were “reef friendly” in Australia until late 2024, despite being aware of scientific studies indicating some ingredients could harm coral reefs. The company did not commission testing to support its environmental claims, depriving consumers of the ability to make informed choices.

Deputy Chair Catriona Lowe put it plainly: “Businesses should not shy away from promoting the environmental credentials of their products, but they must be able to substantiate any claims, for example through reputable third-party certification or reliable scientific reports.”

This case follows recent ACCC action against Australian Gas Networks for allegedly overstating the likelihood of distributing renewable gas to households within a generation. The message is clear: greenwashing is a key enforcement priority for the ACCC, and misleading claims—whether about products, services, or future sustainability—will not be tolerated.

What Does This Mean for Your Business?

At Climate Logic, we see these developments as both a warning and an opportunity. The regulatory landscape is evolving quickly, and businesses must adapt by embedding authentic sustainability into their operations and communications.

Key takeaways for Australian businesses:

• Substantiate Every Claim: Any environmental or sustainability claim must be backed by credible, up-to-date evidence. This includes third-party certifications, scientific studies, and transparent reporting.
• Review Marketing and Product Labelling: Ensure all green claims are accurate, clear, and not likely to mislead consumers. Avoid vague terms like “eco-friendly” or “sustainable” unless you can demonstrate exactly why and how.
• Stay Ahead of Regulation: The ACCC’s 2024-25 priorities make it clear: greenwashing is under intense scrutiny. Regularly review your compliance with the Australian Consumer Law and emerging guidelines.
• Engage with Experts: Navigating the complexity of climate transformation and sustainability claims can be daunting. Seek guidance from sustainability consultants to build robust frameworks for impact, risk, and engagement.

How Climate Logic Can Help

We specialise in helping businesses navigate the complexity of climate transformation and sustainability consulting. Our services include:

• Impact Strategy: Using a double materiality approach, we help you understand your organisation’s impact on people and the environment, and design regenerative business strategies.
• Carbon Accounting & ESG Reporting: Get audit-ready emissions reports and align with the latest ESG frameworks, including ISSB and ACCC guidance.
• B Corp Consultancy: Lead with purpose and accountability by achieving B Corp certification with our expert support.
• Green Website Development: Minimise your digital carbon footprint with sustainable web solutions.

The Bottom Line:
Intent plus effort equals momentum. If your business is committed to genuine transformation, now is the time to act with transparency and integrity. The cost of greenwashing is no longer just reputational—it’s regulatory, and it’s enforceable.

Ready to future-proof your sustainability strategy?
Talk to the us team today.