EU Sustainability: EU Cracks Down on Greenwashing with The Green Claims Directive
To enhance the global initiative for a more sustainable world, the Commission has devoted significant resources to develop a comprehensive package aimed at propelling the EU towards a more environmentally conscious future (The European Green Deal). These initiatives are particularly crucial in the current scenario of escalating planetary temperatures.
According to the Commission, environmental assertions often contain ambiguous, misleading, or unsubstantiated details, accounting for 53.3% of cases. This deceptive practices like greenwashing and the lack of transparency and credibility surrounding environmental labels happens throughout the consumer journey, from advertising to purchasing and product use. To address these concerns, the Commission recently introduced the 'Directive on substantiation and communication of explicit environmental claims,' also known as the Green Claims Directive.
The Green Claims Directive provides rules for companies making eco-friendly / sustainability claims. It explains what information they need to show to prove their claims are true and valid. It also creates a framework and deadlines for checking evidence and approving claims.
Companies who don't follow the Green Claims Directive could face legal trouble, like fines or confiscation of revenues gained by the product.
The Green Claims Directive serves as a valuable addition to the already approved Directive that amends ‘Directives 2005/29/EC and 2011/83/EU as regards empowering consumers for the green transition through better protection against unfair practices and better information’. This approved Directive focuses on strengthening consumer empowerment within the realm of green transitions by enhancing protection against deceptive practices (including prohibition of false claims) and ensuring improved provision of information.
These combined efforts are geared towards enabling consumers to make informed decisions while deterring companies from making misleading sustainability assertions.
The Green Directive is currently in the approval phase and awaiting Council's 1st reading position.
See press release.
Note: According to the draft version, the Green Claims Directive shall not apply to sustainability information involving messages or representations that may be either mandatory or voluntary pursuant to the Union or national rules for financial services.
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