The EU launches the ‘Greenwashing ban’: all you need to know

• The EU puts an end to greenwashing. Strong regulation is coming on ‘green claims’, which currently flood up to 80% of the market. Say goodbye to 'green', ‘eco', 'environmentally friendly' claims. They will no longer be allowed easily! If you provide cleaning products, home fragrances, laundry care or other household goods, you should be aware of this. The ‘Greenwashing ban’ is a game changer. Discover how to deal with it.

• Consumer trends have been turning green for years. There is an increasing supply and demand for sustainable products and services, as well as national and international related policies.

  A clear example is the European Green Deal, the trigger for probably the largest package of measures and legislative modifications in the European Union, such as this new 'green claims law’.

  A ‘Greenwashing ban’… why?

  The aim of this European Commission's initiative is to "update the EU consumer rules to empower consumers for the green transition".

  In fact, consumers do (or at least they do want to) take environment-friendly choices when buying their products: 75% of consumers in Europe are willing to pay more for sustainable products, while they stop buying brands or products that do not respond to this concern—. However, they face a growing and insurmountable obstacle: 

  Greenwashing is defined as as ‘the false or overstated information on the environmental impact or benefits of a company, product or service’.

  Is it really such a widespread practice?

  Well, although it may be hard to believe, a screening from the European Commission and national consumer authorities determined that at least 42% of environmental claims would actually be false or deceptive, and in breach of European trade rules.

  That is why this proposal will, by modifying the regulation, strictly prohibit these misleading practices and require reliable, specific evidence to support environmental claims (until now, hardly ever accessible nor comprehensible to the consumer).

  I am a producer / distributor. What does this mean for me?

  Today's consumers are skeptical and seek for transparent information about companies. Limiting 'green claims’ will help demonstrate the qualities of a product, regain consumer confidence and meet one of their main needs. It will also put an end to unfair competition in this field and make it easier for brands to bet on the most effective and rightful claims and certifications.

  What can and cannot I do?

  Since the proposal has already been adopted in March, changes are not long in coming. What can we expect in practice?

  We have reviewed this initiative to provide a clear and concise summary of the main expected points:

  Forbidden claims

  • Requirements imposed by law or which are a common practice in the market, presented as a distinctive feature of the product (e.g. promoting that a consumer product does not contain any hazardous substance forbidden by law).
  • Generic environmental claims, which the trader is not able to demonstrate. Such as: ‘environmentally friendly’, ‘eco’, ‘green’, ‘climate friendly’, ‘carbon neutral’, ‘energy efficient’, ‘biodegradable’, ‘biobased’, ‘conscious’, ‘responsible’… 
  • Claims about the entire product that actually concerns only a certain aspect of the product (e.g. 'recyclable' referring to the packaging, if could be interpreted as if the whole product were recyclable).
  • Messages inducing the consumer into replacing the product earlier than for technical reasons.
  • In general terms, any unsubstantiated claim (messages, labels, logos…).

  Allowed claims

  • Sustainability labels based on a certification scheme or established by public authorities. 
  • Environmental claims with clear, objective and verifiable commitments and targets and an independent monitoring system. 
  • Comparing products based on their environmental / social aspects (if information about the compared products, their suppliers, the method of the comparison and the data updating measures is provided).
    

  The directive applies to all products that can be marketed in the EU, and the new regulations will be adopted in every member state before 18 months (by the end of 2023).

  But watch out! You should know that many countries already have specific national regulations and guidelines on greenwashing. For example, the Green Claims Code in the UK, competition laws in Canada, or the The Consumer Code and Climate and Resilience Law in France.

  Strategies to tackle the ‘Greenwashing ban’

  Here are some ways for the industry to make the most of legitimate claims:

  1. It is important to carefully examine the product to discover its qualities and its problems. For example, by having it tested by independent laboratories. This will help to improve it, promote it better, and will enable consumers to make the best, informed choice.
     
  2. Always make sure that claims are supported by third-party verification. This is required by regulation, but above all it avoids conflicts of interest that undermine credibility and could interfere with the objective assessment of the product.
  3. Rely on quality and recognised certifications, with a clear, transparent methodology understandable for the consumer (e.g. Air Label Score, to assess the emissions of the product).
     

  With the new restrictions, it stands to reason that credible certifications will become even more effective: take a look at the certified brands that are already ahead in the race for substantiated green claims. 

  To get more details or to join the certification process, please do not hesitate to contact us.

• Want to know more about other upcoming international regulations? Take a look at our article "Global Assessment of Air Pollution Legislation".

  Sources: European Council - Green Deal, Revision of the Detergents Regulation, EU’s chemicals strategy for sustainability, Commission proposal (2022), Brain & Company survey (2021), Deloitte Consumer survey (2022), Commission Screening on greenwashing (2021), Forrester (2022), Empowering Consumers Factsheet, Empowering Consumers Proposal (2022), Green Claims Code UK, Competition Bureau Canada, Code de la consommation France, Loi Climat et Résilience France, Study on environmental claims for non-food products (2014).