Climate Consciousness is Now Mainstream
In July 2024, Lululemon Athletica faced a class-action lawsuit alleging that its ‘Be Planet’ initiative misled consumers about the company’s environmental impact. This incident highlights a growing trend: sustainability expectations have moved from niche to mainstream, with consumers increasingly scrutinising brands’ environmental claims. Is your brand prepared to meet this shift with credibility, or is it heading for a reputational storm?
A Shifting Marketplace
Environmental concerns have transitioned from niche interests to mainstream priorities, significantly influencing consumer behaviour across all demographics. A recent Ipsos report reveals that 41% of Gen Z, 37% of Millennials, 31% of Gen X, and 28% of Baby Boomers have made or changed a purchase decision based on environmental, social or ethical considerations. This broad-based shift is facilitated by consumers’ access to real-time product information through apps like Yuka and Good On You, which provide sustainability scores and third-party verifications. Consequently, the focus has expanded beyond individual ‘green’ products to encompass a brand’s overall ethical stance and transparency. Companies such as Patagonia exemplify this trend by openly sharing their sourcing practices and environmental impact, thereby fostering trust and loyalty among climate-conscious consumers.
Greenwashing is Getting Risky
In 2025, greenwashing—the practice of making misleading or unsubstantiated claims about a product’s environmental benefits—has become a significant risk for brands. Vague assertions like “eco-friendly” without concrete evidence, or the use of misleading imagery, can damage a company’s reputation and lead to legal repercussions. For instance, in October 2024, WisdomTree Asset Management agreed to pay a $4 million settlement over charges from the Securities and Exchange Commission (SEC) for allegedly misleading investors about the environmental, social and governance (ESG) strategy of three of its funds.
Regulatory bodies are intensifying their scrutiny. The UK’s Competition and Markets Authority (CMA) has implemented the Green Claims Code, which mandates that environmental claims must be truthful, clear and substantiated. Similarly, the European Union’s Green Claims Directive aims to standardise environmental assertions across member states. In the United States, the Federal Trade Commission (FTC) is actively cracking down on deceptive green marketing practices.
Advancements in technology are also playing a role in exposing inconsistencies. Artificial intelligence tools are being employed to analyse and verify environmental claims, enabling consumers and watchdogs to detect discrepancies more effectively. In this landscape, brands must ensure their sustainability claims are transparent and backed by verifiable data to avoid potential backlash and legal challenges.
Transparency is the New Trust Currency
In today’s market, transparency has become a pivotal element of brand trust. Consumers are increasingly demanding clear, verifiable information about the products they purchase, prompting companies to adopt innovative technologies to meet these expectations.:
Innovative Tools Enhancing Transparency:
Blockchain Technology: Brands are leveraging blockchain to provide immutable records of a product’s journey. For instance, OpenSC, developed by WWF Australia and BCG Digital Ventures, enables consumers to trace food products from source to table, ensuring ethical sourcing and production.
Digital Product Passports: Companies like Empower offer digital passports that detail a product’s lifecycle, promoting accountability and compliance.
QR Codes for Sustainability Audits: Fashion brands are incorporating QR codes on product tags, allowing customers to access information about sourcing and manufacturing processes.
Case Study: Patagonia’s Commitment to Transparency
Patagonia exemplifies radical transparency by openly sharing details about its supply chain and encouraging product longevity through repair programs. This approach has not only bolstered customer loyalty but also set a benchmark in sustainable business practices.
Embracing Brand Humility: An emerging trend is ‘brand humility,’ where companies candidly acknowledge areas needing improvement. This honesty fosters authenticity and strengthens consumer relationships. For example, Ace & Tate publicly addressed its sustainability challenges, resonating positively with its customer base.
Credibility
In an era where greenwashing is rife, eco-labelling and independent verification have become essential tools for climate-conscious consumers seeking genuine sustainability. The market is awash with eco-labels—some credible, others misleading. Trusted certifications such as B Corp, Cradle to Cradle, EU Ecolabel, and Climate Neutral Certified provide third-party assurance that products meet rigorous environmental and social standards. For instance, the EU Ecolabel evaluates a product’s entire life cycle, ensuring reduced environmental impact from production to disposal.
Brands adopting these credible labels often enjoy increased consumer trust and enhanced shelf appeal, particularly in supermarkets and online marketplaces. To aid consumers further, new platforms like EcoRatings for electronics and Compare Ethics for fashion have emerged, offering transparent comparisons of products’ sustainability credentials. These tools empower shoppers to make informed decisions, reinforcing the importance of verified eco-labelling in today’s market.
Winners and Losers
Winners: Allbirds has carved out a reputation as a sustainability leader by embedding environmental responsibility into every facet of its business. The footwear brand uses renewable materials like merino wool, eucalyptus fibres, and sugarcane-based SweetFoam™, and transparently labels each product with its carbon footprint—akin to nutritional labels on food. In 2023, Allbirds launched the M0.0nshot, the world’s first net-zero carbon shoe, and shared its manufacturing blueprint publicly to encourage industry-wide change. Its B Corp certification and commitment to science-based targets further reinforce its credibility.
Loser: H&M’s “Conscious Collection” was intended to appeal to eco-aware shoppers, but it backfired amid accusations of greenwashing. Investigations revealed that the brand’s sustainability claims were vague and often misleading, with some products labelled as “green” despite containing up to 100% polyester. The Norwegian Consumer Authority criticised H&M for failing to provide clear information on why certain items were deemed more sustainable. The fallout led to lawsuits and the eventual retirement of the Conscious line.
Allbirds’ success stems from authentic, measurable actions backed by third-party validation and radical transparency. In contrast, H&M’s downfall highlights the risks of superficial sustainability claims without substantiation. For brands, the lesson is clear: climate-conscious consumers demand more than green tags—they expect proof.
The Takeaway in a Warming World
To thrive in a climate-conscious marketplace, brands must align their operations and messaging with genuine sustainability. Here’s a concise checklist to guide your journey:
Audit all sustainability claims: Ensure every environmental assertion is accurate, verifiable and free from exaggeration to avoid greenwashing pitfalls.
Use clear, evidence-based language: Communicate your sustainability efforts transparently, providing tangible data and avoiding vague terminology.
Seek credible certification: Pursue recognised third-party certifications like B Corp or EU Ecolabel to validate your environmental commitments.
Be honest about progress, not just perfection: Share both achievements and areas for improvement, fostering trust through authenticity.
Involve consumers in your journey: Engage your audience through transparency reports, feedback mechanisms and co-creation opportunities.
In 2025, consumer loyalty is increasingly tied to a brand’s environmental integrity. Transparency and genuine sustainability efforts are no longer optional—they’re essential. Brands that not only commit to eco-friendly practices but also openly share their journey will foster deeper connections with their audience. As the climate crisis intensifies, the most resilient brands will be those that walk the talk, demonstrating their dedication to a sustainable future at every step.
And what about you…?
- How confident are you that your brand’s sustainability claims would stand up to independent scrutiny? (What evidence or third-party validation do you currently have in place?)
- What worries you most about embracing full transparency in your sustainability journey? (Is it fear of criticism, exposing imperfections, or competitive disadvantage?)
