Eneco to stop using the claim ‘Faster towards climate neutral’ following ACM action

Following conversations with the Netherlands Authority for Consumers and Markets (ACM), energy supplier Eneco will stop using the slogan “Faster towards climate neutral” (original in Dutch: “sneller klimaatneutraal”) in its ads. Using this general claim may create uncertainty among consumers about the specific sustainability benefits of Eneco’s products. ACM considers this sustainability claim to be possibly misleading. In addition, it is not clear that the claim is about an ambition for the year 2035. Eneco will no longer use this claim in its communications targeting consumers.

Renske Fikkers, acting Director of ACM’s Consumer Department, adds: “One pitfall when phrasing sustainability ambitions is the use of vague, general terms such as climate-neutral, carbon-neutral or sustainable. Vague claims make it more difficult to compare the ambitions of different companies with one another. In order to be able to make well-informed choices, it must be clear to consumers what companies will actually do. We challenge companies to inform consumers about their sustainability ambitions as concretely as possible. It is very good that Eneco is taking this step now. Hopefully, other companies will follow Eneco’s example.”

Guidelines regarding Sustainability claims: guidance for companies

ACM’s Guidelines regarding Sustainability claims offer companies guidance about their communications regarding sustainability. The most important rules of thumb are:

• Use correct, clear, specific, and complete sustainability claims;
• Substantiate your sustainability claims with facts and keep them up-to-date;
• Make fair comparisons with other products or competitors;
• Describe your future sustainability ambitions in concrete and verifiable terms;
• Make sure that visual claims and labels are useful, not confusing.

Even if a company is able to substantiate a sustainability claim, it is important that the claim itself is clear and specific. For example, Eneco does have a substantiated plan for their carbon-reduction ambitions, and also implements this plan. ACM welcomes these efforts. However, substantiation does not justify the use of a vague claim. Consumers cannot deduce from such vague claims what sustainability efforts Eneco actually undertakes. That is why Eneco has made commitments to ACM to stop using the claim “Faster towards climate neutral” in its communications targeting consumers. However, the company will keep communicating about its ambition, for example, for internal purposes.

ACM and sustainability

ACM ensures that markets work well for people and businesses, now and in the future. Sustainable production and consumption are essential for a future-ready society. ACM’s oversight over sustainability claims of companies helps realize that. Consumers must be able to make more-sustainable choices with confidence.

Consumers are not the only ones that need to be protected against misleading sustainability claims. Businesses that undertake sustainability efforts must be protected against businesses that compete unfairly by using misleading claims. ACM has published its Guidelines regarding Sustainability Claims in order to offer companies guidance about their sustainability claims.