The UK government has unveiled the Green Agreements Guidance, issued by the Competition and Markets Authority (CMA), aimed at clarifying how competition laws apply to environmental sustainability agreements among businesses operating at the same supply chain level, as reported by Financial Times on October 13. The guidance outlines key principles and practical examples to assist companies in their collaborative efforts towards climate change and environmental sustainability. CMA emphasized that agreements in line with the guidance are not expected to face enforcement action. The document includes a specific section addressing agreements focused on combating climate change.

This initiative follows the CMA’s environmental sustainability advice to the UK government in March 2022, responding to the need for clarity among businesses regarding legal parameters when working together for sustainability goals. The guidance aims to facilitate agreements like the fashion sector’s commitment to increasing sustainable materials in their products. To assist companies further, the CMA has introduced an open-door policy, allowing businesses, NGOs, and charities to seek informal guidance on proposed sustainability initiatives.

Sources:

https://www.ft.com/content/93ef0d3a-ea4d-4557-80f4-8fa629577f8d

https://www.gov.uk/government/news/cma-launches-green-agreements-guidance-to-help-businesses-co-operate-on-environmental-goals