EU Commission Proposes Common Criteria Against Greenwashing and Misleading Environmental Claims

Yesterday, the EU Commission proposed a new set of rules aimed at reducing greenwashing and misleading environmental claims made by companies in the EU. The proposal, part of the European Green Deal, aims to promote sustainable consumption and enhance the circular economy by establishing a level playing field for information about the environmental performance of products.

The proposal is the third package of proposals on the circular economy, following the adoption of the first and second packages in March and November 2022. It targets explicit claims about the environmental impacts, aspects, or performance of a product, service, or the trader itself, and covers all voluntary claims except those covered by existing EU rules.

Before companies communicate any of the covered types of green claims to consumers, such claims will need to be independently verified and proven with scientific evidence. The proposal also regulates environmental labels, ensuring that they are reliable, transparent, independently verified, and regularly reviewed.

The lack of clear regulations on green claims often leads to "greenwashing," which creates an unfair market for genuinely sustainable companies. In 2020, a Commission study revealed that 53.3% of environmental claims made by companies in the EU were either vague, misleading or unfounded, and 40% were unsubstantiated. The absence of common rules for companies making voluntary green claims can also mislead consumers, leading them to believe that certain products or services are more environmentally friendly than they actually are.

By establishing more transparent and standardized rules, companies can be held accountable for their claims, and consumers can make more informed decisions when purchasing products or services. The proposal will provide consumers with more clarity, stronger reassurance, and better quality information to choose environment-friendly products and services.

The proposal does not apply to organic food products, but the EU Commission recognises the need for more specific labeling schemes for food products at the EU level. Additionally, the EU Commission has decided not to apply the Product Environmental Footprint (PEF) methodology based on Life Cycle Assessment proposed by the European Commission's Joint Research Center (JRC) as it was found to be inadequate for the purpose of labeling food products.

The EU Commission's proposal for common criteria against greenwashing and misleading environmental claims is an important step towards promoting sustainable consumption and enhancing the circular economy. By establishing more transparent and consistent rules for companies to follow, consumers will be better informed and able to make more sustainable choices. Ultimately, the EU Commission's proposal has the potential to drive positive change across industries and encourage businesses to adopt more sustainable practices, leading to a more environmentally conscious and socially responsible economy.

Read the proposal for a Directive on Green Claims