(Reuters) -Britain's competition watchdog said on Tuesday it would scrutinise environmental claims made by UK consumer goods giant Unilever (LON:ULVR) about certain household essential items, amid a wider crackdown on greenwashing.
The Competition and Markets Authority (CMA) said it is seeking to make sure shoppers are not being misled after an initial review uncovered a range of concerns that the maker of Dove soap "may be overstating how green certain products are".
"We'll be drilling down into these claims to see if they measure up," said CMA Chief Executive Sarah Cardell.
"We are surprised and disappointed with the CMA's announcement and refute that our claims are in any way misleading," a spokesperson for Unilever said in an emailed statement. "We will continue to co-operate with the CMA and fully comply with further requests for information."
Shares in the London-listed firm opened 0.7% lower on Tuesday.
The regulator is stepping up scrutiny of companies that may be exaggerating their green credentials in an attempt to woo climate-conscious consumers as well as billions of dollars from environmentally focused investor funds.
The CMA had launched a wider probe in January, joining regulators across the United States and Europe as they crack down on potentially false environmental, social and governance-related (ESG) claims made by companies.
It last year published a green claims code, a set of guidelines for companies and shoppers to ensure that environmental claims are genuine and not misleading.
The watchdog said it had not opened official investigations into other companies, adding that possible outcomes of the Unilever probe include securing undertakings from the company to commit to operational change or taking the firm to court.