Last week, the European Parliament took a big step towards ending “greenwashing” – the deceptive practice of making false or exaggerated claims about the environmental benefits of a product, service, or company.
A directive adopted by the EP last Wednesday bans vague and unsubstantiated marketing claims such as “environmentally friendly,” “natural,” “biodegradable,” “eco” and “climate neutral,” unless accompanied by concrete evidence. Slogans like “certified CO2 neutral” and “carbon positive” will also be banned, as they are misleading consumers.
The directive now needs to receive final approval from the EU’s Council of Ministers, after which EU member states will have 24 months to transpose it into national law.
The Rise of Greenwashing
A 2020 study by the European Commission revealed that over 53% of environmental claims in the EU lacked clear, factual information, with an additional 40% lacking any supporting evidence. Nearly half of the 230 eco-labels in the bloc were found to have weak or non-existent verification procedures.
Another survey, from 2023, found that one-in-four climate-related corporate ESG claims amounted to greenwashing.
The Green Claims Directive (GCD) aims to restore consumer confidence and trust. The directive applies to business-to-consumer commercial practices, calling for improved product labelling and greater visibility of guarantee details. Consumers will now have access to detailed information on product life cycles, repairability and environmental impact.
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Greenwashing presents a significant obstacle to tackling climate change.
By implying that a company is doing more to protect the environment than it is, greenwashing misleads the public and promotes false solutions to the climate crisis.
The introduction of the Green Claims Directive marks a watershed moment in the fight against greenwashing and the promotion of sustainable consumerism.
As the directive progresses through the legislative process, it will meet with many differing environmental claims and varying interpretations across member states. But the writing is on the wall: companies that want to be trusted by consumers will need to back up their sustainability claims.