The UK’s competition watchdog will help businesses understand how they can collaborate on environmental sustainability goals without breaking the law.
The new Green Agreements Guidance, published today by the Competition and Markets Authority (CMA), gives greater clarity about how competition law applies to sustainability-related agreements made between companies working at the same level on the supply chain.
The guidance sets out the key principles which apply, along with practical examples illustrating what businesses should and should not do when working with other companies on environmental sustainability initiatives.
“We know that tackling climate change and promoting environmental sustainability matters, and supporting businesses to do this is a priority for the CMA,” said CMA chief executive Sarah Cardell.
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An open-door policy will also allow business, trade associations, NGOs and charities to approach the watchdog directly for informal advice on whether proposed initiatives are within the law.
For example, if the fashion sector agreed to set targets for gradually increasing the amount of sustainable materials used in clothing ranges, the guidance explains how this should be done so businesses can be confident their agreement complies with competition law.
A wider awareness campaign also includes a detailed roadmap and checklist to help businesses navigate different categories of risk and navigate their agreement.
“The guidance goes further than before – it gives firms greater certainty about when agreements that genuinely contribute to addressing climate change will be exempt from competition law,” Cardell added.
“Our open-door policy means we can work with companies to give them tailored informal guidance on how they can work together to boost the green economy.”
The Green Agreements Guidance follows work from the CMA’s Sustainability Taskforce after it published its environmental sustainability advice to the UK government in March 2022.
