Format
Data
Report
2024 Edition
36
months of regulatory change set to reshape retail sustainability
67%
of retailers surveyed lack a systematic green claims process
5×
average ROI delivered by compliance technology vs. manual processes
Retail sustainability regulation is moving from voluntary guidance to binding law faster than most businesses anticipated. This report draws on primary research with UK and EU retail leaders to map the regulatory changes coming over the next 36 months and provide a frank assessment of how ready the sector really is to meet them.
The Research
What We Found: The State of Retail Compliance
The picture that emerged from our research is one of widespread awareness but limited action. Retail sustainability teams understand the direction of regulatory travel — but face significant structural barriers to translating that understanding into operational compliance processes capable of meeting the new demands regulators will place on them.
67%
Lack a Systematic Process
Of retailers surveyed still rely on ad-hoc, manual processes to manage green claims — spreadsheets, email, and periodic audits rather than continuous verification systems.
83%
Underestimate Third-Party Risk
Of multi-brand retailers had not assessed the compliance status of environmental claims made by their third-party brand partners — a significant and often unrecognised liability.
41%
Unaware of All Regulations
Of retail sustainability managers were not aware of all the regulations that will apply to their business within the next 24 months — a gap that leaves businesses exposed.
29%
Have a Documented Claims Policy
Only this proportion of retailers had a documented internal policy governing how environmental claims are created, verified, and approved before going live.
The Regulatory Horizon
What Is Coming and When
The pace of regulatory change is accelerating. Based on current legislative timelines, retailers face a compounding set of obligations over the next three years that will touch every aspect of how they communicate sustainability to consumers.
CMA Direct Enforcement Powers Active
The Digital Markets, Competition and Consumers Act gives the CMA new powers to fine businesses directly (up to 10% global turnover) without court proceedings — significantly accelerating enforcement timelines.
EU Empowering Consumers Directive Live
Generic environmental claims (eco-friendly, sustainable, green) banned across the EU without substantiation. Businesses selling to EU consumers must comply or remove claims.
EU Green Claims Directive Implementation Begins
Member states begin transposing the Directive. Pre-market verification requirements start applying to new environmental claims made by businesses operating in EU markets.
Full EU Directive Enforcement
All explicit environmental claims to EU consumers must be independently verified before use. Penalties of up to 4% of annual EU turnover apply for non-compliance.
The retailers who treat the next 36 months as a compliance crisis will spend the period firefighting. The ones who treat it as an infrastructure opportunity will emerge with a defensible competitive advantage in consumer trust.
— Compare Ethics Research Report, 2024The Path Forward
What Separates Leading Retailers
The research identified a clear divide between retailers who are ahead of the compliance curve and those who are falling behind. The differentiator is not the size of the team or the scale of the business — it is whether or not sustainability compliance has been embedded into operational processes with clear ownership, systematic verification, and technology support.
Leading retailers have moved from treating green claims compliance as a legal task to treating it as an operational one — with processes owned by cross-functional teams, technology supporting verification at scale, and clear escalation paths when claims cannot be substantiated. This shift changes the economics of compliance fundamentally: what was previously a costly, time-intensive manual burden becomes an efficient, scalable part of business operations.
The final message from this research is one of urgency balanced with opportunity. The regulatory changes coming are not trivial — but neither is the business case for getting compliance right. Consumer trust in sustainability claims is at an all-time low. The businesses that can demonstrate genuine, verified environmental credentials will stand out in exactly the way that consumers — and regulators — are demanding.
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