Green Marketing in Australia: Business & Policy Trends 2025

Australian businesses are increasingly harnessing the power of green marketing in 2025, not just to boost their bottom line, but to align with growing consumer demand for sustainability and comply with evolving environmental regulations. From supermarkets to banks, brands are rethinking their messaging and practices to capture the eco-conscious market—and the impact is being felt across industries.

Why Green Marketing Matters More Than Ever in 2025

Green marketing—promoting products and services based on their environmental benefits—has evolved from niche strategy to mainstream necessity. In Australia, this shift is driven by several forces:

• Stricter environmental policies: The Australian government’s 2025 sustainability targets, including new requirements for emissions reporting and packaging waste reduction, are compelling businesses to adopt greener practices or face penalties.

• Consumer demand: A 2025 Roy Morgan survey found that 67% of Australians prefer to buy from brands with credible environmental credentials. Shoppers are scrutinising claims, rewarding transparency, and punishing greenwashing.

• Investor pressure: ESG (Environmental, Social, Governance) factors now weigh heavily on investment decisions. Funds and superannuation managers are funnelling capital towards companies with robust sustainability strategies.

This convergence of regulatory, market, and financial pressures makes green marketing a critical lever for growth and resilience.

Real-World Examples: Who’s Getting It Right?

Some Australian brands are leading the charge with authentic and effective green marketing:

• Coles and Woolworths: Both major supermarkets are rolling out certified carbon-neutral product ranges and investing in electric delivery vehicles. Their campaigns now focus on traceability, local sourcing, and plastic-free packaging.

• Bank Australia: This customer-owned bank advertises its fossil fuel-free lending portfolio and climate action roadmap, attracting younger, values-driven customers.

• Who Gives A Crap: The toilet paper disruptor’s cheeky, sustainability-led marketing—highlighting 100% recycled materials and profits that fund sanitation projects—has driven double-digit growth in 2025.

These examples demonstrate the power of combining genuine environmental initiatives with clear, creative communications.

2025 Policy Updates and Compliance Challenges

In 2025, Australian regulators are cracking down on misleading environmental claims. The Australian Competition and Consumer Commission (ACCC) has updated its greenwashing guidance, and new standards require:

• Evidence-based claims: All environmental marketing must be substantiated with verifiable data (e.g. independent certifications, lifecycle analyses).

• Clarity in labelling: Vague terms like “eco-friendly” or “green” are no longer acceptable without context. Labels must explain how a product is environmentally preferable.

• Transparency: Brands must disclose the full scope of their sustainability initiatives, including limitations and trade-offs.

Fines for breaches have increased, and several high-profile cases in 2024 and 2025 have resulted in public retractions and loss of consumer trust.

How Businesses Can Succeed with Green Marketing

For Australian companies, effective green marketing in 2025 means more than surface-level messaging. Success hinges on:

• Integrating sustainability into core strategy rather than treating it as a PR exercise.

• Engaging stakeholders: Involving employees, suppliers, and customers in the sustainability journey builds credibility and fosters innovation.

• Measuring and reporting impact: Transparent data on emissions, resource use, and social outcomes is now expected by both regulators and the public.

• Continuous improvement: Policies and consumer expectations will keep evolving. Businesses need agile marketing that adapts to new standards and technologies.

Looking Ahead: The Future of Green Marketing in Australia

As climate risks and sustainability imperatives intensify, green marketing will remain central to business strategy in Australia. The winners will be those who move beyond compliance and creatively connect purpose, product, and profit—delivering genuine value to both people and planet.