Green claims or fake claims – prepare for the Green Claims Directive in time

Environmentally friendly, organic, ecological, biodegradable. We use all these words quite carelessly, and for many of us they have a positive resonance. But are they true, and can they be proven to be true? Soon it will not be possible to use them without justification. It is time, therefore, to look for more precise expressions and verify the facts behind them.

In January 2024, the European Parliament approved by a large majority (593 to 21 with 14 abstentions) the Green Claims Directive, which aims to protect consumers from misleading marketing and help them make better purchasing decisions. Problematic marketing practices related to greenwashing and the sustainability of products are being added to the commercial practices prohibited in the EU. This is to improve consumer protection, as well as to promote the circular economy and protect the environment.

The Council of Europe still has to approve the reform, after which the Member States will have 24 months to introduce the contents of the reform into national legislation.

Green Claims Directive aims to put an end to greenwashing

The EU wants to stop so-called greenwashing, i.e. the use of false claims, and offer consumers reliable information about the sustainability and environmental friendliness of products. 

In order to achieve these objectives, the EU plans to prohibit:

• General environmental claims that cannot be proven
• Claims that a product has a neutral, reduced or positive impact on the environment because the manufacturer compensates for its emissions
• Sustainability labels that are not based on approved certification systems or that have not been approved by the authorities (Source: europarl.europa.eu)

In the future, it will not be enough for a company to compensate for the harm caused by its product, but the product itself must meet the environmental requirements in a verifiable way. 

What exactly is greenwashing?

The concept of greenwashing may seem unclear, as general environmental claims are usually positive and sound nice. However, they may leave the consumer with too little information, or the claimed environmental friendliness of the product may only be a small feature. In the future, it will not be enough to change a specific part of the product or the packaging, but the entire product must meet the requirements.

Greenwashing can be interpreted as any claim that gives the consumer a misleading impression of the product’s environmental friendliness. The Green Claims Directive requires that all information about a product’s environmental impacts must be verified from reliable sources. The requirement extends to, for example, product durability and the warranty period, environmental impacts, repairability, composition and production.

Proving the environmental friendliness of a product is not that simple and often leads to long product descriptions. It may be difficult for the consumer to find the information they need or finding it out may be slow and demanding. That is why companies are tempted to use attractive, simple expressions in their marketing that create a positive image for the consumer. However, now is just the right time to prepare for the future and rethink advertising slogans – in such a way that they can be verified. 

Recently, several examples have become public where green claims have already been addressed. Among other things, The Finnish airline Finnair and 16 other airlines received negative publicity for example for their advertisement highlighting greenhouse gas emissions. The sustainability claims of many fast fashion chains have also been questioned and even taken to court. For example, H&M faced a “greenwashing” class action lawsuit for allegedly misleading and false marketing of its “sustainable” clothing line. 

Dare we say anything about environmental impacts?

So what can companies say about the environmental impact of their products anymore? Should they dare to use such claims at all? Yes, but the claims must not be too general and they must be verifiable.

Start preparing for the Green Claims Directive as follows:

1. What environmental claims do we use? Which of them can be verified?
2. Avoid generic terms. Present your case concretely and precisely. 
3. Does the consumer understand the environmental claim without undue effort?
4. Avoid claims about carbon neutrality that are based on compensation alone.
5. Remember the product’s durability and life cycle, including the warranty period.
6. Make sure the message conveyed through pictures, graphs and other visual elements is consistent with the text.
7. Also point out development targets and communicate what is being done towards achieving them. 

New label for extended warranty periods

One dimension of greenwashing is marketing the product by its durability. The European Parliament wants to ensure that consumers know the warranty period of the products they buy and their right to demand the repair of a defective product. According to EU law, products must have a warranty period of at least two years. Products whose warranty period is longer than required may in the future receive a new product label. 

The requirements for sustainability labels are also changing, and they must be based on approved certification systems or drawn up by the authorities.

To ensure consumer rights, the EU also prohibits:

• Promoting products with features that may shorten their lifespan
• Making promises about product durability without proof
• Presenting the products as repairable if they are not
  

Consumer confidence in environmental claims is weak

According to several studies, consumer confidence in environmental and green claims is weak. According to the Nordic Swan label’s consumer research, only about a fifth of consumers trust marketing claims. About half of the claims have been found to be misleading. Altogether 63% of Finns feel that the environmental friendliness of products is often exaggerated, and 61% are often annoyed that products are marketed as “green” without good reasons. (Nordic Consumer Sustainability Index 2022)

At the EU level, around 80% of consumers say that they cannot find information about the product’s repairability, and 86% wish for more information about the product’s durability. Four out of five want more information about spare parts and repair instructions, and many are also willing to pay more for a durable product. According to a survey conducted by Kantar in 2022, more than 80% of consumers say that it is difficult for them to find reliable information about the sustainability of products.

FIBS (Finnish Business & Society), the largest corporate responsibility network in the Nordic countries, emphasises that companies must make sure that their product development and the entire manufacturing process correspond to what is stated in the claim. This must be done before environmental claims are used in marketing. This obligation also requires greater care in the selection of contractual partners.

The Green Claims Directive and better rights for consumers certainly present a lot to think about and pose challenges for companies – but only for those who have not yet started their sustainability work. Companies that are already able to verify their environmental claims or have already started the work have got a head start.

Author: Marja Keränen
Communications consultant

Medita Communications Ltd
ESG+D situation assessments, ESG+D strategy, sustainability communications

Published: 11.6.2024

Medita’s goal is to protect and increase the value of our clients’ businesses through sustainability communications and by developing their ESG+D (environmental, social, governance, dialogue) readiness.

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