5 tips for building an environmentally friendly brand

Does your business have an environmental policy, and more to the point, can you back it up?

Sustainability has gone from a nice-to-have to something customers increasingly expect, and a credibly sustainable brand can build real trust, loyalty, and even command a premium.

But here is the catch in 2026. Customers have heard it all before, and most no longer take green claims at face value. At the same time, regulators in Australia are actively cracking down on businesses that overstate their environmental credentials. So building an environmentally friendly brand is no longer about saying the right things, it is about proving them. Get it right and you stand out. Get it wrong and you risk your reputation, and possibly a fine. Here is how to build a sustainable brand that customers actually believe, without slipping into greenwashing.

Contents

Why a sustainable brand matters in 2026

Sustainability does matter to customers. Surveys consistently show most people consider a business’s environmental impact when they buy, and many will pay a little more for products they believe are better for the planet, though cost-of-living pressures have tempered that somewhat lately.

The complication is trust. The same research shows most consumers are now sceptical of sustainability claims, with some surveys finding only around one in five say they actually believe what brands tell them about their green credentials. That gap, between what people want and what they believe, is the real story. It means sustainability is no longer a claim you can simply make, it is something you have to earn and prove, which is why it sits so close to building trust in your brand.

The greenwashing trap

Greenwashing is when a business makes itself, or its products, seem better for the environment than they really are, whether through exaggeration, vague claims, or simply leaving out inconvenient detail. Consumers are savvy these days and see through flimsy, unsupported statements quickly. But the bigger shift is that greenwashing is now a legal risk, not just a reputational one.

In Australia, the ACCC has made this an enforcement priority. An internet sweep it ran found that 57% of the businesses reviewed had made concerning environmental claims, and in late 2023 it published eight principles for trustworthy environmental claims. Since then, the ACCC and ASIC have pursued real penalties, including multimillion-dollar fines. Tellingly, the regulator specifically warns against broad, vague terms like “green”, “sustainable” and even “environmentally friendly” when they are not backed by evidence. In other words, the very language brands have leaned on for years is now exactly what gets flagged. You can read the regulator’s guidance on making environmental claims directly.

How to build a credibly sustainable brand

Avoiding greenwashing is refreshingly simple in principle: be specific, have evidence, and walk the talk. Here is what that looks like in practice.

Be specific, not vague. Swap broad labels for what you actually do. The difference is night and day.

Vague claim (risky) Specific, credible claim
“Eco-friendly” “Packaging made from 100% recycled card”
“Sustainable” “Carbon neutral certified since 2024”
“Green” “Powered by 100% renewable electricity”
“Better for the planet” “Uses 40% less water than our previous range”

Have the evidence. Only make a claim you can back with real proof, ideally independent or certified. If you cannot substantiate it, do not say it. The ACCC is clear that even a technically true claim can mislead if it leaves out the bigger picture.

Walk the talk internally. A sustainable brand has to be true across the whole business, not just on the label. This is where an internal environmental policy earns its place: reducing and reusing where you can, going paperless, cutting waste and energy use. The point is not a poster on the wall, it is that your actions match your words.

Be transparent about the journey. You do not have to be perfect. Customers respond far better to honest progress, “here is what we have done, and here is what we are still working on”, than to grand, absolute claims. How you communicate all of this matters enormously, which is the work of clear brand messaging, and proof from happy customers through testimonials helps back it up.

Practical sustainable choices

Some practical choices make a real, provable difference, and they are worth highlighting specifically in your brand.

Print and packaging. If you print, choose recycled or recyclable stock and only print what you actually need, then mark your materials as recyclable so customers can continue the cycle once they have your product in hand. Thoughtful, sustainable print is an easy and visible win, and it pairs naturally with getting your print right in the first place.

Your digital footprint. Websites have an environmental cost too. Green web hosting, where a host runs on renewable energy or offsets its carbon footprint, is one way to reduce yours. It is a small, behind-the-scenes choice, but a real one, and one more provable detail you can point to rather than a vague boast.

Don’t rely on sustainability alone

Here is the strategic catch. Because so many brands are now striving to be more sustainable, you probably will not stand out on your environmental credentials alone. Sustainability is increasingly table stakes, expected rather than remarkable, so leaning on it as your single point of difference is a risky bet.

Treat it instead as one strong part of a bigger, distinctive brand, not the whole story. Keep your competitive difference sharp in other ways too, your positioning, your story and the genuine quality of what you do, so sustainability strengthens your brand rather than carrying it. A brand that leans on its environmental policy alone is, ironically, flirting with one of the reasons brands fail to stand out at all.

Frequently asked questions

What is a sustainable or environmentally friendly brand?
It is a brand whose environmental commitments are real, consistent and backed by evidence, rather than just claimed. That means making sustainable choices across the business, from materials and energy to suppliers, and communicating them accurately. In 2026, a credibly sustainable brand is defined less by what it says and more by what it can prove.

What is greenwashing and why is it risky?
Greenwashing is making a business or product seem better for the environment than it really is, through exaggeration, vague claims or leaving out key facts. It is risky because consumers are increasingly sceptical and quick to call it out, and because regulators like the ACCC are actively pursuing it, with real penalties for misleading environmental claims under Australian Consumer Law.

How do I avoid greenwashing?
Be specific rather than vague, have solid evidence for every claim, make sure your actions match your words, and be transparent about what you are still working on. Avoid broad terms like “eco-friendly” or “green” unless you can back them up, and never leave out information that would change the overall impression. If you cannot prove it, do not claim it.

Do customers really care about sustainable brands?
Yes, but with a catch. Most consumers say sustainability matters and many will pay a little more for it, yet most are also sceptical of brands’ green claims, with some surveys finding only around one in five believe them. So caring is not the issue, believing is. Brands that prove their credentials, rather than just assert them, are the ones that benefit.

Is “environmentally friendly” a safe thing to claim?
Not on its own. The ACCC specifically flags broad, unqualified terms like “environmentally friendly”, “green” and “sustainable” as risky when they are not backed by evidence, because they can mislead consumers. If you use such a phrase, support it with specific, provable detail about what makes it true, rather than letting it stand alone as a vague claim.

Can sustainability make my brand stand out?
It can contribute, but rarely on its own any more, since so many brands now make similar commitments. Sustainability is becoming an expectation rather than a differentiator. The brands that stand out treat it as one credible part of a distinctive whole, combining it with strong positioning, a clear story and genuine quality, rather than relying on it alone.

Read more: What is a brand strategy and do I need one?