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As companies accelerate their climate and environmental commitments, questions arise over how far competitors can collaborate without breaching competition law. The ICC Practical Guide on Competition Law and Sustainability Agreements offers practical insights on how competition law frameworks in the European Union, United Kingdom and United States apply to sustainability agreements.

What does the guide cover?

The guide explains how businesses can pursue joint sustainability objectives responsibly, outlining:

• The types of cooperation initiatives which typically fall outside the scope of competition law concerns, such as agreements that do not affect price, output, quality or innovation.

• The criteria for exemption or tolerance, including when sustainability agreements may qualify under Article 101(3) TFEU, Section 9 of the UK Competition Act 1998, or the US Rule of Reason.

• “Soft safe harbours” identified by authorities such as the European Commission and UK Competition and Markets Authority, offering assurance for specific forms of environmental collaboration.

• High-risk conduct, including price-fixing, market allocation, output restrictions and greenwashing, that remains prohibited even when linked to sustainability objectives.

• Information-sharing and standard-setting safeguards, explaining how to exchange data or set joint standards without facilitating collusion.

• Comparative enforcement trends, from the EU’s and UK’s open-door guidance approach to the more case-driven US model.

Competition authorities worldwide are increasingly recognising that well-designed cooperation can support both sustainability and market efficiency, provided it complies with competition rules. Clearer guidance is emerging, but businesses must remain proactive in understanding how these frameworks evolve to ensure both compliance and impact.

As highlighted in ICC’s COP30 Call to Action on Antitrust for Climate Action, competitive markets play a fundamental role in advancing responsible environmental collaboration.