UK businesses explore sustainability with CMA
October 16, 2023
UK businesses can seek sustainability collaboration using CMA guidance and discover their efforts to embrace eco-friendly practices.
The Competition and Markets Authority (CMA) in the UK has unveiled its Green Agreements Guidance, a crucial resource for businesses looking to collaborate on sustainability while staying within the bounds of competition law.
The guidance, titled “Application of UK Competition Law to Environmental Sustainability Agreements,” is a comprehensive tool to help businesses within the same supply chain level work together effectively to combat climate change and promote environmental sustainability while ensuring legal compliance.
This guidance includes essential principles and practical examples that businesses can use to make informed decisions when entering into sustainability projects with other firms. Importantly, the CMA has made it clear that agreements adhering to this guidance will not face enforcement action. There’s also a dedicated section addressing climate change agreements.
The guidance release follows extensive consultations and builds upon environmental sustainability advice provided to the UK government in March 2022, incorporating feedback from various stakeholders.
As part of a broader awareness campaign, the CMA has introduced a roadmap and video resources to assist UK businesses in navigating different risk categories associated with environmental agreements. This roadmap provides essential guidance to businesses as they embark on sustainability initiatives.
For instance, companies in the UK fashion industry can confidently set targets to increase the use of sustainable materials in their clothing lines, knowing that they are fully compliant with competition law.
As businesses in the UK explore the potential of the Green Agreements Guidance, one might ask: Could the office imaging sector use this guidance to collaborate on sustainability issues? With the flexibility and clarity provided by the CMA, various industries may find new opportunities to work together towards a more sustainable future.
The CMA has also adopted an open-door policy for businesses, trade associations, non-governmental organizations, and charities seeking informal guidance on proposed environmental sustainability initiatives in the UK.
Sarah Cardell, Chief Executive of the CMA, highlighted the importance of this guidance:
“We understand the urgency of addressing climate change and promoting environmental sustainability in the UK. The Green Agreements Guidance provides clarity and certainty to UK businesses, allowing them to set green goals within the boundaries of competition law.”
Cardell emphasized that the guidance goes beyond previous efforts by providing greater clarity on competition law exemptions for agreements focused on climate change. She also stressed the CMA’s commitment to offering tailored informal guidance through the open-door policy, which will play a vital role in boosting the UK’s green economy.
The release of the Green Agreements Guidance is part of the CMA’s wider initiative to facilitate agreements among UK businesses operating within the same supply chain tier, following its environmental sustainability recommendations to the UK government in March 2022.
Categories : World Focus
Tags : Business CMA Green Agreements Guidance Sarah Cardell Sustainability UK
