According to ESG Today, the move comes after an investigation done by ACM, who says that both H&M and Decathlon agreed to pay 400.000 and 500.000 euros respectively to sustainable causes.

This way, the companies would be able to "compensate for their use of unclear and insufficiently substantiated sustainability claims."

Corporate greenwashing is a practice done by other companies around the world, including Coca-Cola and Unilever, and it implies either exaggerating sustainability claims or straight-up lying about a firm's sustainability efforts.

Based on the revenue of companies, ACM decided to further investigate six firms, including H&M and Decathlon, where it found some of the most misleading sustainability claims.

The Swedish fashion brand, for example, uses the label "Conscious" or "Conscious Choice", but doesn't really provide much information on how choosing that particular product benefits thee environment, for example.

In a similar fashion, Decathlon's "Ecodesign" sustainability label doesn't specify any relevant benefits or those products either.

This is why both companies agreed to remove their current sustainability-related labeling system and rethink their eco-friendly communication system.

Cateautje Hijmans van den Bergh, ACM board member, stated that "consumers that wish to make sustainable choices must be able to have confidence in the veracity of the claims that businesses make on their products or websites."

"We are pleased to see that these companies have acknowledged that they should have informed consumers more clearly about the sustainability aspects of their products, and that they will adjust various sustainability claims and their substantiations", she added.

According to ESG Today, H&M officials stated that "we acknowledge that the information on sustainability on our website could have been provided more clearly and more comprehensive."

"Changes are being made through which we commit to better informing our customers about the composition of our products and thus improving our sustainability communications", they added.