Greenwashing is no longer just unethical – it’s a business risk

Suppliers, in turn, must align with these expectations or risk losing contracts and credibility in an increasingly regulated market. Greenwashing is no longer just unethical, it’s a business risk.

For too long, sustainability in social housing has been riddled with ambiguous claims. Terms like ‘net-zero ready’ and ‘energy efficient’ are used freely, yet many developments still rely on outdated building materials, inefficient heating systems and poorly managed supply chains. Meanwhile, suppliers tout ‘low-carbon’ solutions without offering transparent data on emissions, lifecycle impacts or ethical sourcing.

The problem? These misleading claims create a false sense of progress while delaying the real, systemic changes needed to make housing genuinely sustainable and affordable. They also erode trust, not just among regulators and investors, but also in the communities that rely on social housing.

“These misleading claims create a false sense of progress while delaying the real, systemic changes needed to make housing genuinely sustainable and affordable”

The UK is taking a firm stance on greenwashing through stricter oversight and enforcement measures.

The CMA Green Claims Code requires companies to provide clear, accurate and substantiated environmental claims, ensuring that sustainability statements are backed by credible evidence.

FCA anti-greenwashing rules introduced new requirements for financial products and corporate disclosures to prevent misleading ESG claims.

The Advertising Standards Authority is also cracking down. It is increasingly scrutinising misleading sustainability adverts and penalising firms for deceptive claims.

For social housing providers and suppliers, this means environmental claims must be backed by verifiable data – vague, misleading statements will no longer be tolerated. Suppliers must also prove their sustainability credentials, from carbon footprints to ethical sourcing. And green certifications must be meaningful; arbitrary eco-labels won’t hold weight without proper verification.

Failure to comply with these stricter regulations could lead to fines, reputational damage and exclusion from future contracts. But, more importantly, it would mean failing the very communities social housing exists to serve.

For housing providers and their suppliers, sustainability can no longer be just a marketing message, it must be backed by measurable action. To build a truly sustainable and ethical sector, three key priorities must be addressed.

Data-driven sustainability is first. Housing providers must collaborate with suppliers that offer full carbon reporting, ethical-sourcing data and transparent impact assessments.

Second, energy-efficiency claims should be based on proven performance metrics, not just projections or industry buzzwords.

Finally, there should be supply-chain accountability. Contractors and material suppliers must adhere to genuine ESG standards, ensuring sustainability is embedded throughout the supply chain. Suppliers must take active steps to eliminate modern-slavery risks, unethical sourcing and misleading product certifications to maintain integrity and compliance.

“For housing providers and their suppliers, sustainability can no longer be just a marketing message, it must be backed by measurable action”

There also needs to be community-centric sustainability, whereby green building initiatives should be driven by tenant needs, focusing on energy affordability, comfort and long-term well-being. Transparency is essential. Housing providers must clearly communicate the social and environmental benefits of their sustainability efforts, ensuring trust and engagement from all stakeholders.

By focusing on these principles, the social housing sector can move beyond empty claims and create lasting, meaningful change for both people and the planet.

The future of UK social housing depends on real action. The UK’s greenwashing regulations are a line in the sand for the social housing sector. Housing providers and suppliers alike must embrace this shift, not just to comply with regulations, but to drive genuine, lasting change.

The days of vague green promises are over. It’s time for the UK social housing sector to lead with credibility, transparency and real impact. Organisations will now need to step up or risk being left behind.

Francesca Lee, chief executive and founder, SocialValueArchitect