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The Australian Association of National Advertisers released the updated Environmental Claims Code on 1 March. The changes the code ushers in are welcome as they provide clarity on some areas that were previously a little muddy. They’re also a clear call for businesses and their agencies to go further than lip service when it comes to communicating about sustainability.
Here, Stu Wragg, managing director of Salterbaxer Australia, Publicis Groupe’s sustainability consultancy, shares his insights on the importance and implications of the updated code.
Heightened scrutiny of greenwashing, combined with emerging regulations, has made Australian brands wary about trumpeting their sustainability initiatives. When this results in stalled action, it can significantly inhibit both authentic progress and commercial growth.
Environmental challenges persist for businesses irrespective of the economic or political landscape. Stakeholders – including employees, investors, and consumers – want concrete actions from businesses, even if these expectations aren’t always vocalised. All of this makes inaction a risky path.
This week, the Australian Association of National Advertisers’ updated Environmental Claims Code came into effect. This code sets guidelines for environmental claims in advertising and is enforced by Ad Standards.
While the code itself is important, the broader message it sends to business leaders is more significant. This isn’t just a compliance hurdle; it’s a clear indication of the increased expectation that businesses responsibly communicate about their sustainable transformation. An expectation that has been made clear by the high-profile focus of regulatory bodies on greenwashing, including the Australian Competition and Consumer Commission.
For Australian marketing leaders, the challenge – and opportunity – lies in playing an active role in driving meaningful change within their organisations, not simply achieving compliance. That means moving beyond inaction for fear of being ‘caught out’ greenwashing, to proactively engaging in transparent and authentic storytelling. It also means avoiding the common pitfall of putting sustainability engagement in the ‘too hard basket,’ or worse, overseeing the cutback of existing sustainability initiatives.
Our recent New Business Basics research report, based on interviews with business and sustainability leaders across APAC, revealed a tendency for organisations to prioritise appearances over substance, with conformity often overshadowing genuine leadership.
In this regulatory environment, businesses truly committed to sustainability have an opportunity to stand out and lead. By making information about their sustainable transformation accessible and engaging, these organisations can empower their stakeholders to understand and connect with their efforts.
A critical role for marketers lies in helping their businesses embrace transparency in how they communicate about their sustainable transformation. This means openly sharing sustainability data, honestly acknowledging challenges and showcasing progress – not just highlighting polished achievements. Authentic storytelling about the journey toward a sustainable future, rather than just waiting until the destination, is essential for mobilising employees and consumers.
Importantly, this also includes communicating the ‘why’ behind sustainability efforts – something our research found is often missing in how APAC companies engage. All this underscores where marketing expertise is vital – driving creative engagement that moves hearts and minds and inspires action.
Unfortunately, too many marketers lack the sustainability knowledge needed to effectively craft and communicate credible but compelling engagement. Formal sustainability training is limited, creating a gap in addressing critical topics. Compounding this is the reality that sustainability often exists in silos inside organisations, hindering knowledge transfer and cross-departmental collaboration. This fragmentation stifles creativity and integration in marketing efforts, impacting an organisation’s ability to present a cohesive and impactful sustainability message.
Bridging the sustainability knowledge gap is crucial and must be a top priority for marketers in 2025. The good news is marketers seem to agree. Research by the UK’s Chartered Institute of Marketing found 40 percent of marketers don’t have sustainability-related qualifications but are eager to acquire them. Custom programs highlighting regulatory guidelines, best practices, real-world case studies of successes and failures and strategies for authentic consumer engagement are crucial.
By embracing transparency and investing in sustainability literacy, Australian marketers can transform the increased greenwashing scrutiny into an opportunity for genuine leadership. Allowing them to drive both meaningful environmental impact and long-term business value.
Developing these skills is not just a temporary solution; it’s a vital, long-term investment in the future of marketing. Marketers must understand the boundaries and guardrails to effectively guide their teams toward credible, creative, sustainability-focused communication and engagement. As the urgency for sustainable action grows, prioritising these capabilities is more important than ever.
Stu Wragg is the managing director of Publicis Groupe’s sustainability consultancy, Salterbaxter Australia, and a facilitator of the United Nations Global Compact Network Australia’s anti-greenwashing course, ‘Time to Stop the Spin Cycle’.
