EU’s Green Claims Directive: What Businesses Need to Know
The European Union has taken a significant step toward combating greenwashing with the introduction of the Green Claims Directive. Adopted in early 2024, this new regulation aims to ensure that environmental claims made by businesses are accurate, transparent, and verifiable. As consumers and regulators increasingly demand accountability, companies must adapt to these new rules to maintain trust and avoid penalties.
What is the Green Claims Directive?
The Green Claims Directive is part of the EU’s broader efforts to promote sustainability and transparency in the marketplace. It targets misleading or unsubstantiated environmental claims, such as “eco-friendly,” “carbon-neutral,” or “100% recyclable,” which have become common in marketing. The directive requires businesses to back up their green claims with scientific evidence and provide clear, accessible information to consumers.
Key Requirements of the Green Claims Directive
Substantiation of Claims
Companies must provide robust, science-based evidence to support any environmental claims.
Claims must be verified by independent third parties before being used in marketing.
Transparency and Clarity
Environmental claims must be clear, specific, and easy to understand.
Vague or generic terms like “green” or “eco-friendly” are prohibited unless substantiated.
Comparative Claims
If a product is compared to others, the comparison must be fair, accurate, and based on equivalent data.
Carbon Neutrality Claims
Companies claiming carbon neutrality must disclose the methodology used, including details on offsetting measures.
Labelling and Communication
Environmental labels must be standardised and approved by recognised certification schemes.
Companies must provide detailed information about the environmental impact of their products, such as carbon footprint or recyclability.
Who Will Be Affected?
The Green Claims Directive applies to all businesses operating in the EU, regardless of their size or location. This includes:
Manufacturers and producers making environmental claims about their products.
Retailers and distributors promoting green credentials.
Service providers claiming sustainability benefits.
Deadlines and Enforcement
From 2025: Businesses must ensure all new environmental claims comply with the directive.
From 2026: Existing claims must be reviewed and updated to meet the new standards.
Enforcement: Non-compliance can result in fines, product recalls, or bans on misleading claims.
How Businesses Can Prepare
Review Existing Claims: Audit all current environmental claims to ensure they are accurate and substantiated.
Invest in Certification: Work with recognised certification bodies to verify claims and obtain approved labels.
Train Teams: Educate marketing and sales teams on the new requirements to avoid unintentional greenwashing.
Engage Experts: Consult sustainability and legal experts to ensure compliance with the directive.
Communicate Transparently: Provide clear, detailed information to consumers about the environmental impact of products.
Why This Matters
The Green Claims Directive is a game-changer for businesses and consumers alike. For companies, it’s an opportunity to build trust and credibility by demonstrating genuine sustainability efforts. For consumers, it ensures they can make informed choices based on reliable information.
Need Help Navigating the Green Claims Directive?
Contact us for expert guidance on ensuring your environmental claims comply with the new EU regulations. Let’s work together to turn sustainability into a competitive advantage.