The Competition and Markets Authority has published new guidance to help businesses understand how they can collaborate on environmental sustainability goals without breaking the competition law.
The publication of the new Green Agreements Guidance follows extensive consultation and explains how competition law applies to environmental sustainability agreements between firms operating at the same level of the supply chain.
In 2022, a survey by the CMA found that businesses wanted more clarity on what is, and what is not, legal when working together towards environmental sustainability goals. The CMA publicly consulted on a draft guidance earlier this year.
As an example, the fashion sector agrees to set targets for gradually increasing the sustainable materials used in their clothing ranges. The guidance explains how this should be done so businesses can be confident their agreement complies with competition law.
Sarah Cardell, CMA chief executive, said: “We know tackling climate change and promoting environmental sustainability matters, and supporting businesses to do this is a priority for the CMA.
“This 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 while 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.”
