Green Claims: EU puts green claims under scrutiny
Green Claims is the EU's fight against greenwashing, and a directive that aims to ensure that companies do not unjustifiably adorn themselves with green feathers.
Green Claims is good news
For all companies with a genuine interest in green transition and transparent communication about sustainability, the EU’s proposed Green Claims Directive is good news.
It sets out minimum criteria for both documentation and communication of specific environmental claims – also called ‘green claims’ – that companies will use in their marketing.
Half of all green statements are problematic
The work on the directive was launched after an EU study in 2020 showed that over half of all green claims examined were either vague or downright misleading.
The low credibility of green marketing is a hindrance to those companies that actually have real initiatives to highlight. It makes it harder for consumers to make informed choices.
What you should do
The Green Claims Directive will not become part of Danish legislation for a few years at the earliest. So there is time to run, but as a company you might as well start preparing now so that you are ready. Companies that want to be at the forefront of the stricter requirements for marketing with green claims can focus their efforts by:
Collect data
Solid and verifiable documentation for your green claims is crucial. If you start getting relevant life cycle analyses, sustainability reports or climate accounts done now, your company will be in a strong position when the new requirements come into effect.
Involve the company
Get all departments and employees involved so they are informed about the changes that are coming. Then also include, for example, product development, purchasing, production and management in the process. The requirements seem to be so extensive that everyone will play a role if you are to document your green claims.
Review communication materials
Review your existing communication materials to ensure there are no unsubstantiated claims that could be misunderstood or mislead recipients.
Key points of the directive
Although the directive is not a game-changer for companies' climate communication in Denmark in all respects, several new breakthroughs are planned. Today, companies are fined if they make misleading and undocumented environmental claims in their marketing, which is why the Consumer Ombudsman has drawn up guidelines for "green" marketing.
Key themes in the directive include:
More documentation
As a company, you must prepare for the requirements for the prior work of documenting claims to be greatly tightened. Among other things, it is planned that consumers must have easy access - e.g. with a QR code - to the documentation that forms the basis of your green claim. It is also a requirement that it be communicated in an easily understandable language.
Verification requirements
According to the proposal, all claims must in future be approved by a verified third party. You cannot make a green claim in your marketing without it having been approved in advance. This must include ensure a level playing field on the EU market, where a so-called certificate of conformity allows you to freely use your environmental marketing across member states.
Fewer eco-labels
The forest of hundreds of eco-labels that exist across the EU must be cleared up. The directive proposes that only labels that are demonstrably of higher standards than, for example, the EU Flower should be permitted.
Control over compensation schemes
The requirements for compensation schemes and communication of compensations, where companies buy CO2 reductions from, for example, afforestation projects, must be tightened. The aim is to make their reporting more transparent. Compensation schemes often have “low environmental integrity and credibility,” the proposal states.
Does not apply to everyone
Micro-enterprises – with fewer than 10 employees and an annual turnover of no more than 2 million euros – are exempt. If you still want a certificate of conformity that is valid in all EU countries, you must meet the same requirements as everyone else.
Podcast about Green Claims
In the podcast series, we share experiences and concerns. We talk to our own experts, but also seek inspiration outside the office. Always with the aim of making ourselves – and you – smarter. This episode is about Green Claims.
