Greenwashing Risks in 2026: How SMEs Can Communicate Authentic Progress

As sustainability becomes more visible in business, so does scrutiny. By 2026, claims about being “green”, “net zero” or “sustainable” are no longer taken at face value. Customers, regulators and partners increasingly expect evidence, and for SMEs, getting this wrong can be risky.

This is where greenwashing comes in. Greenwashing refers to making environmental claims that are misleading, exaggerated or unsupported. Often, it isn’t deliberate. Many SMEs genuinely want to communicate progress but lack clarity about what they can safely say.

Understanding the risks, and how to communicate honestly, is becoming essential for UK SMEs.

Why greenwashing is a growing issue

The pressure to demonstrate sustainability has grown quickly. Customers ask about carbon footprints. Larger businesses expect suppliers to share environmental data. Marketing teams want to highlight positive actions.

At the same time, rules around environmental claims are tightening. In the UK and EU, regulators are paying closer attention to vague or unsubstantiated claims. Words like “eco-friendly” or “carbon neutral” are increasingly challenged if they can’t be backed up.

For SMEs, the risk isn’t just regulatory. Greenwashing can damage trust. Once credibility is lost, it’s hard to rebuild, particularly with customers who value transparency.

Common greenwashing traps for SMEs

Most greenwashing happens unintentionally. Common pitfalls include overstating progress, using unclear language, or focusing on small initiatives while ignoring bigger impacts.

For example, switching to recycled packaging is positive, but presenting it as proof that a business is “sustainable” overall can be misleading. Similarly, claiming to be “net zero” without measuring emissions or explaining how that status was achieved can raise red flags.

Another common issue is copying language used by larger companies. Big organisations often have the data, audits and resources to support bold claims. SMEs should be careful not to mirror this language unless they can support it in the same way.

What authentic sustainability communication looks like

Authentic communication isn’t about having the best sustainability story, it’s about having an honest one.

In 2026, credibility increasingly comes from transparency. That means being clear about what you’re doing, what you’re not doing yet, and what your next steps are. Customers are generally more forgiving of businesses that admit they’re on a journey than those that appear to claim perfection.

Using plain language helps. Instead of broad claims, focus on specific actions: energy reductions achieved, waste reduced, targets set, or policies introduced. Explaining why certain steps were taken and how progress is tracked builds confidence.

It’s also important to distinguish between goals and achievements. Saying “we aim to reduce emissions by 20% by 2028” is very different from saying “we have reduced emissions by 20%”.

The role of data and evidence

You don’t need complex reporting to communicate responsibly, but you do need some evidence. Invoices, meter readings, supplier information and basic tracking can all support credible claims.

Where possible, linking claims to recognised frameworks or standards can help. Even if you’re not formally certified, aligning language with accepted definitions reduces confusion and risk.

Just as importantly, ensure that marketing claims match internal reality. Sustainability messaging should reflect what the business is actually doing, not just what it hopes to do.

Preparing for stricter rules in 2026 and beyond

Regulatory pressure around environmental claims is expected to increase. Guidance from bodies like the Competition and Markets Authority already sets expectations around clear, accurate and substantiated claims, and enforcement is likely to strengthen.

For SMEs, this means now is the time to review sustainability messaging. Website copy, sales decks, tender responses and social posts should all be checked for consistency and clarity.

The goal isn’t to say less, it’s to say things more carefully.

Progress, not perfection

The good news is that SMEs don’t need flawless sustainability credentials to communicate responsibly. What they need is honesty, consistency and a willingness to improve.

By focusing on real actions, clear language and measurable progress, SMEs can build trust rather than risk it. In a crowded sustainability landscape, authenticity isn’t just safer, it’s more compelling.