Europe Wants to Crack Down on "Greenwashing"

Europe is cracking down on “greenwashing.” EU Directive 2024/825, “Empowering Consumers for the Green Transition” (EmpCo), is intended to better protect consumers from greenwashing and provide them with reliable information to make sustainable purchasing decisions. Starting September 27, the regulations will take effect in all member states, requiring companies to substantiate their green claims in a concrete, verifiable, and transparent manner. The goal is to curb greenwashing, promote the repair and circular economy, and empower consumers to make informed, sustainable purchasing decisions.

Companies may only use environmental and sustainability claims if they are verifiable and substantiated. In particular, the following are prohibited:

• General claims such as “environmentally friendly,” “green,” or “sustainable” if they cannot be substantiated.
• Claims about future environmental performance (e.g., climate neutrality), unless they are based on a concrete, verifiable implementation plan.
• Misleading claims about the social or environmental characteristics of a company or product.

Stricter Requirements for Sustainability Labels

Sustainability labels may generally only be used if they:

• Are based on a recognized certification system or have been awarded by government agencies.

Labels developed in-house or that cannot be verified are thus significantly restricted.

Protection against planned obsolescence

Consumers must not be misled about a product’s lifespan or repairability. The following, for example, are prohibited:

• False claims regarding durability.
• Withholding information that shortens the product’s lifespan.
• Misleading statements regarding repairability or the availability of replacement parts.

Greater Transparency for Consumers

Before making a purchase, consumers should be better informed about, among other things, durability, repairability, recyclability, statutory warranty rights, and available repair options.

New Marketing Prohibitions

The following, among other things, are prohibited:

• Advertising that highlights irrelevant environmental benefits.
• Statements intended to apply to the entire product, even though they pertain only to a part of it.
• Claims that a product has positive environmental characteristics, even though these are already required by law.

Implications for Businesses

Businesses should review all environmental and sustainability claims, maintain robust evidence to support green claims, review their own sustainability labels, and adapt their marketing, product, and compliance processes to meet the new requirements. (aum)