European MPs have welcomed a new agreement that “ends the proliferation of deceitful green claims which have tricked consumers for far too long” through the adoption of new rules and text banning greenwashing in company product or services marketing materials.
Businesses wishing to make environmental claims about their products or services must first submit them for approval from accredited verifiers under the new rules laid out within the European Union’s ban on greenwashing.
Adopted this week, the Internal Market and Environmental committees have now set out new guidance on how firms operating in or dealing with the European market can validate their environmental marketing claims. The new Green Claims Directive defines what information needs to be provided to justify such environmental claims while creating a framework for checking and approving them.
The Directive also specifies what will happen to companies who break the law over an already-approved EU ban on greenwashing. This could include being excluded from procurements, loss of revenues, and fines of at least 4% of their company’s annual turnover.
MEPs have suggested that the Commission should draw up a list of simpler and more common types of environmental claims and products that could benefit from faster verification. MEPs also agreed that micro enterprises should be excluded from the new obligations and SMEs will receive the benefit of one extra year before applying the rules.
Carbon offsetting and comparative claims are also in the cross hairs as the Directive confirms the recent EU ban on green claims based solely on carbon offsetting schemes.
It specifies that companies could still mention offsetting if they have already reduced their emissions as much as possible and use the schemes for residual emissions only. On top of this, the carbon credits of the schemes must be certified, as established under the Carbon Removals Certification Framework.
Claims that products have been improved cannot be based on data more than five years old.
“Studies show that 50% of companies’ environmental claims are misleading,” said EU Parliament’s rapporteur for the Internal market Committee, Andrus Ansip. “Consumers and entrepreneurs deserve transparency, legal clarity, and equal conditions of competition.
“I am pleased that the solution proposed by the committees is balanced, brings more clarity to consumers, and at the same time, in many cases, is less burdensome for businesses than the solution originally proposed by the Commission.”
Cyrus Engerer, Parliament’s rapporteur for the Environment Committee, added: “It’s time to put an end to greenwashing. Our agreement on this text ends the proliferation of deceitful green claims which have tricked consumers for far too long.
“It also ensures businesses have the right tools to embrace genuine sustainability practices. European consumers want to make environmental and sustainable choices and all those offering products or services must guarantee their green claims are scientifically verified.”
