At a Glance

The 2026 update to the CMA Green Claims Code strengthens enforcement, requiring UK businesses to substantiate environmental claims with clear, verifiable evidence across entire supply chains. Non-compliance carries financial, legal, and reputational risks. ERP systems like Business Central enable centralised data management, traceability, and audit-ready reporting to support accurate, compliant sustainability claims.

The UK Green Claims Code

Organisational sustainability initiatives are moving beyond a mere marketing exercise to a more regulated, evidence-focused requirement. The January 2026 update to the CMA Green Claims Code in the UK has ushered in a new phase of enforcement, putting the spotlight on businesses to substantiate their environmental claims.

If your business is still relying on multiple tools and manual reports, these changes pose an additional challenge. But with ERP systems like Business Central, your business can clearly validate, track, and report on sustainability data.

In this guide, we’re exploring what the CMA Green Claims code is, the impact of non-compliance and how an ERP like Business Central can support your compliance needs.

What Is the CMA Green Claims Code and Why Does It Matter?

Introduced by the UK’s Competition and Markets Authority (CMA) in 2021, the Green Claims Code provides guidance for businesses making environmental claims about their products, services, or brands. It sets out how businesses must communicate environmental claims without misleading consumers.

The UK Green Claims Code calls for businesses to follow 6 main principles:

  1. Claims must be truthful and accurate
  2. Claims must be clear and unambiguous
  3. Claims must not omit or hide important information
  4. Claims must consider the full lifecycle of a product or service
  5. Claims must be backed with credible evidence
  6. Comparisons must be fair and meaningful

Why the CMA Green Claims Code Matters More in 2026

Although the code has been in effect since 2021, the regulatory environment has shifted significantly.

With more enforcement powers introduced in the new legislation, businesses need to manage scrutiny across entire supply chains and actively verify accuracy claims.

This signals a shift from marketing-driven sustainability claims to more data-backed, system-validated ones, a shift that is difficult to achieve without an ERP.

Key Changes Expected in 2026

On January 22, 2026, the CMA issued new guidance that keeps the existing rules while strengthening enforcement expectations and clarifying responsibilities, particularly across supply chains.

Here are the 2026 updates to the CMA green claims code:

1. Supply Chain Accountability

A key development in the UK Green Claims Code is a focus on sharing responsibility. Your business is no longer only accountable for claims you create, but also those you repeat, rely on, or communicate.

This means that manufacturers must provide substantiated data, while distributors must vouch for claims when passing claims. At the same time, retailers must verify supplier claims.

If you claim it, you must prove it, even if the data comes from elsewhere.

2. Mandatory Evidence and Verification

The CMS expects businesses to look beyond supplier assurances and take reasonable steps to verify environmental claims.

This means your business must provide access to underlying environmental data, maintain audit trails and documentation, and have ongoing validation processes.

Moving away from vague claims such as “eco-friendly” or “sustainable”, your business now needs to follow a more evidence-based approach.

3. Stronger Enforcement Powers

Under the Digital Markets, Competition and Consumers Act, the CMA can now directly enforce consumer protection laws and issue fines up to 10% of global turnover for breaches.

This increases regulatory risk, especially for organisations with high volumes of product-level claims.

4. More Focus on Transparency and Clarity

Continuing with its 2021 guidelines, the CMA Green Claims Code requires businesses to ensure their claims are accurate, truthful, clear, and supported by evidence.

More importantly, you need to make sure key information is accessible at the point of claim and not hidden behind disclaimers.

Risks of UK Green Claim Code Non-Compliance

Failing to comply with the 2026 CMA Green Claims Code update carries consequences beyond warnings.

  • Financial penalties: Non-compliance carries the risk of financial penalties, especially for large enterprises, which can go up to 10% of global turnover.
  • Operational disruption: Investigations into claims may demand data audits, claim withdrawals, and changes to product marketing and labelling. This can create significant operational hurdles.
  • Legal and contractual exposure: With shared liability across supply chains, your business may face disputes with suppliers and greater due diligence requirements.
  • Reputational damage: If found guilty of greenwashing, it can quickly impact customer trust, especially in a market where sustainability claims are under scrutiny.

How ERP Systems Support ESG and Compliance Reporting

Keeping track of these evolving environmental reporting requirements in the UK needs more than just an upgrade to your company’s ESG policies. You need systems that can track your data and offer you more control.

This is where ERP platforms like Business Central can help. 

  • Centralised data management: BC consolidates procurement and supplier data, product specifications, and manufacturing and logistics data from across the organisation, creating a single source of information. This is important to back up any claims.
  • Traceability across the supply chain: Modern ERPs enable businesses to track materials and components back to their sources, capture supplier certifications and sustainability metrics, and maintain audit trails for verification.
  • Real-time reporting: Business Central can provide insights into ESG performance, helping your business monitor sustainability KPIs, generate compliance-aligned reports, and respond quickly to regulatory requests.
  • Audit and evidence management: ERP systems have built-in document management workflows that store supporting evidence for claims and help ensure compliance during audits.
  • Integration with ESG tools: You can integrate your ERP with carbon accounting tools, ESG reporting platforms and compliance management software to create an interconnected compliance system.

Make Business Central Your ‘Compliance Partner’ with Brookland Solutions

As a Microsoft Partner with over 20 years of experience helping UK businesses from diverse industries, we can help you align your operations with changing regulatory requirements by:

Partner with Brookland Solutions today. Book a consultation to learn how we make compliance more manageable for you.