Yes. The Competition & Markets Authority ("CMA") launched the Green Claims Code in September 2021 following consultation with businesses and consumers around green marketing, however, it should be noted that is about consumer protection and fair trading rather than purely anti-trust law.

The Green Claims Code applies throughout the supply chain, including to manufacturers, wholesalers, distributors and retailers, and to both goods and services during the whole lifecycle of a product. It is based on six key principles:

• Claims must be truthful and accurate – broad terms such as “green” and “eco-friendly” may be deemed unclear and risk creating a more favorable impression than is justified.
• Claims must be clear and unambiguous – when using terms such as “biodegradable” and “recyclable” it must be made clear whether this refers to the product or the packaging, and which parts.
• Claims must not omit or hide important relevant information – QR codes could be used to give more detailed information.
• Comparisons must be fair and meaningful – comparative claims should be capable of being substantiated by transparent and accurate evidence that consumers can verify, and comparators should meet the same needs or be for the same purpose.
• Claims must consider the full lifecycle of the product or service – if it is stated that a product has a “33% lower carbon impact” this must be based on the entire lifecycle, including e.g. transportation.
• Claims must be substantiated – when using the terms “cleanest” or “best” this must be backed up with evidence.

The CMA will be looking not just at consumer-facing activities: its remit extends to business-to-business sales where the principles should also be applied.

The CMA has launched a Sustainability Taskforce to support the UK’s transition to a low-carbon economy. Its purpose is to develop formal guidance, engage with the Government, industries and other partner organizations with the purpose of identifying any need for legislative change so new regulations may be published at any time.

In the Competition and Market Authority’s Merger Assessment Guidelines (CMA129, revised in 2021), Section 8.21 offers environmental and sustainable improvements as being an example of a potentially relevant customer benefit that would be considered in the analysis of mergers. 

The CMA also published guidance on Environmental Sustainability Agreements and Competition Law on January 27, 2021. This details the issues where companies collaborate on something for environmental purposes, which the CMA encourages. It stresses that businesses should:

• use a fair standard-setting process;
• avoid serious restrictions of competition and anti-competitive behavior; and
• consider available allowances and exemptions to ensure they do not run into competition law issues.

No. The CMA’s Joint Venture Business Advice, published on  April 12, 2018, does not address ESG.

The aforementioned environmental sustainability agreements and competition law guidance does comprehensively cover environmental issues, however, it does not address any social or governance considerations.

There are international organizations that provide guidance, such as ISO 26000 and the Organization for Economic Co-operation and Development of Responsible Business Conduct Guidelines for Multinational Enterprises. However, these are not UK-specific authorities, and their guidance does not appear to be specific to a party’s individual queries. 

Within the United Kingdom and internationally, there are several organizations that provide ESG data and ratings. However, these are unregulated and their ratings are calculated using different criteria which presents a confusing landscape of information. This was addressed in the International Regulatory Strategy Group ("IRSG") and Accenture’s joint report on ESG ratings and data in financial services. 

The Financial Conduct Authority ("FCA") has stated how regulation is needed in this area in the UK. The UK government has mirrored these concerns in its policy paper Greening Finance: A Roadmap to Sustainable Investing published on October 18, 2021. 

There is an increasing trend toward businesses that are not subject to specific rules or codes in the United Kingdom still seeking to develop environmental policies and ESG strategies, while voluntarily reporting on relevant ESG activity.

This is viewed by companies as a form of futureproofing for eventual regulation and managing their corporate reputation. Given the increased scrutiny from stakeholders surrounding sustainable business practices, and in particular, a company’s reporting on climate change, engaging with ESG (whether voluntarily or not) is now seen as imperative.

There is also a trend towards ESG due diligence in transactions, whether from the parties involved or through the considerations of lenders when assessing exposure to future risk. Businesses are also seeking to enter into sustainability agreements on projects to ensure that ESG or sustainability goals are mutually achieved.

The Global Reporting Initiative ("GRI") was established in 1997 to create an accountability framework for companies to display to their stakeholders their responsible environmental business practices. GRI began implementing the term ESG and the focus on these issues in 2009, a few years after the term ESG began to become more widespread. Many investors, businesses, and governments use GRI’s ESG framework today in expressing impacts such as climate change, human rights, governance and social well-being.

The Carbon Disclosure Project ("CDP") began in 2000 and aimed to create a global economic system that protects against climate change. The motivation of the CDP framework was to transform capital markets by encouraging businesses to prioritize environmental reporting and risk management. In 2002, CDP established its environmental disclosure program and has since grown to be the platform for over 8,400 companies in 800 cities and 120 states and regions.

The Sustainability Accounting Standards Board ("SASB") began in 2011 to develop standards that display both sustainability and financial fundamentals. The creator of the framework, Jean Rogers, stated the goal for the framework was so “investors could compare performance on critical social and environmental issues, and capital could be directed to the most sustainable outcomes.” As of today, SASB focuses on financially material information that is more specifically defined per industry. This aspect of SASB sets it apart from the other frameworks.

The Taskforce on Climate-related Financial Disclosures ("TCFD") was created in December of 2015 with Michael Bloomberg as its chair in an effort to further consider the climate in the global financial system. The TCFD provides a process for companies to report their climate-related financial risks, consisting of physical, liability and transition risks, to stakeholders. As of February 2020, over 1,000 public and private companies consisting of AUM $138.8 trillion have demonstrated their support.

Lastly, the Workforce Disclosure Initiative ("WDI") was created in 2016 by the “responsible investment” non-profit ShareAction in the UK. The framework, modeled after the CDP, collects data on the management of both direct employees and supply chain workers in an effort to provide institutional investors with meaningful information. As of 2019, the WDI had 137 investor signatures and 118 companies using the framework.

No.