Green Agreements guidance launched by Competition and Markets Authority

Help for businesses to understand how to collaborate on environmental sustainability goals without breaking the law.

The Competition and Markets Authority (CMA) has published new Green Agreements Guidance, which explains how competition law applies to environmental sustainability agreements between firms operating at the same level of the supply chain, to help them act on climate change and environmental sustainability.

The guidance sets out the key principles which apply, along with practical examples that businesses can use to inform and shape their own decisions when working with other companies on environmental sustainability initiatives. It explains that the CMA does not expect to take enforcement action against agreements that are in line with the guidance. There is also a chapter dealing specifically with how agreements tackling climate change will be considered.

The guidance follows the environmental sustainability advice the CMA provided to the UK government in March 2022. As part of that work, the CMA found businesses wanted more clarity about what is, and what is not, legal when working together towards environmental sustainability goals.

The CMA is also committing to an open-door policy where businesses which are in doubt (and representative bodies such as trade associations), non-governmental organisations and charities can approach the CMA for informal guidance on proposed environmental sustainability initiatives.

Find out more about the new Green Agreements Guidance.

First published 13 October 2023