Sustainability: How to Avoid Energy Greenwashing

As more businesses commit to reducing their carbon footprint, renewable energy has become a priority for many business owners. However, the rapid growth of the sustainability market has also given rise to greenwashing, where suppliers overstate or misrepresent the environmental benefits of their products and services. For business owners keen to move to a green energy supplier, this can make it difficult to identify genuine renewable suppliers.

How to Verify a Supplier’s Green Claims

Below are practical steps to help you separate true renewable energy sourcing from greenwashing.

1. Check the Supplier’s Fuel Mix Disclosure (FMD)

In the UK, suppliers must disclose the proportion of their electricity sourced from coal, gas, nuclear, renewable, and other fuels. This requirement provides transparency about how "green" a supplier truly is.

• The REGO system (Renewable Energy Guarantees of Origin) exists partly to support Fuel Mix Disclosure requirements, which ensure electricity suppliers reveal the mix of fuels used to generate their electricity.

• This helps customers confirm whether the supplier actually sources a high share of renewables.

How to use this: Look for the supplier’s annual fuel mix chart, usually published on their website or in tariff documentation.

2. Confirm REGOs Are Being Used Responsibly

Not all green tariffs are created equal. Suppliers must buy and retire REGOs to claim renewable sourcing.

• Energy suppliers are required to purchase REGO certificates and retire them to match the amount of electricity sold under green tariffs.

• REGOs act as tracking and accounting tools, not actual “green electrons,” so transparency is essential.

• Businesses can avoid greenwashing by checking supplier disclosures and ensuring REGOs are used responsibly.

How to use this: Check whether the supplier publishes:

• The number of REGOs retired.

• How REGOs match your consumption.

• Whether their “100% renewable” claim relies heavily on the cheapest certificates only. Suppliers with clear REGO reporting are typically more credible.

3. Look for Independent Accreditations or Third‑Party Verification

Third‑party certifications help confirm that a supplier’s tariff is genuinely renewable.

• Credible green tariffs often rely on verification through Ofgem’s Renewable & CHP (Combined Heat & Power) Register or independent accreditations. Ofgem is the Office of Gas and Electricity Markets, an independent national regulatory authority for the UK's energy markets, responsible for protecting consumers' interests, setting the energy price cap, promoting competition, and overseeing the transition to net-zero carbon emissions

How to use this: Look for labels or mentions such as:

• Ofgem‑accredited REGO tracking.

• External audits of renewable sourcing.

• Certification schemes that verify renewable claims.

  
  

4. Examine Whether the Supplier Invests in Renewable Energy Generation

A strong sign of a credible green tariff is whether the supplier directly supports renewable energy projects (e.g., wind or solar investment) rather than relying entirely on certificate purchases.

• Renewable certificate systems can be used superficially, so understanding whether a supplier invests in real renewable energy generation helps avoid greenwashing.

• Some tariffs fail to deliver genuine emissions cuts if they simply rebadge fossil‑fuel power with cheap certificates.

How to use this: Check if the supplier:

• Owns renewable assets.

• Has long‑term Power Purchase Agreements (PPAs).

• Shows transparent sustainability reporting. This shows whether the tariff delivers real environmental benefits.

5. Assess Transparency in Marketing Claims

Suppliers should clearly explain how their green tariffs work. Vague or simplistic claims ("100% green energy") without explanation are a warning sign.

• Certificate‑based systems require careful use to avoid double‑counting and greenwashing.

• Transparent suppliers explain how certificates are retired and how renewable generation is verified.

How to use this: Look for details such as:

• How the tariff is matched with renewable generation.

• Whether the supplier explains REGO limitations.

• Evidence supporting sustainability statements.

6. Cross‑Check Against Supplier Registrations and Public Databases

Suppliers participating in renewable certificate schemes must appear in official registers.

• Ofgem administers the REGO system and provides an online platform tracking issuance, transfers, and retirement of REGO certificates.

How to use this: You can check:

• Ofgem’s Renewable & CHP Register.

• Supplier fuel mix publications.

• Listed renewable generators backed by REGOs. These provide evidence of legitimate renewable activity.

---