A European Commission study carried out six years ago found that more than half of environmental claims were misleading and 40% were entirely unsubstantiated. To protect consumers from such greenwashing, for example, manufacturers may no longer attach unsubstantiated ecolabels or written claims to products, or use nature imagery or designs that create a more environmentally friendly impression and seemingly justify charging consumers a higher price.
How can companies avoid greenwashing?
The changes affect all marketing and communications materials containing messages about the environment, climate or sustainability. Such messages must now be precise, substantiated and, where necessary, verifiable.
Generic environmental claims that cannot be substantiated are prohibited. For example, if a company cannot demonstrate how a product or service is “environmentally friendly”, “nature-friendly”, “green” or “energy-efficient”, it may not use those claims.
However, messages supported by a valid, recognised ecolabel, such as the Nordic Swan Ecolabel, or a higher level of environmental performance defined in legislation, such as an A energy rating for buildings, may be used freely.
Claims and labels suggesting environmental friendliness must be substantiated so that consumers are not misled.
Greenwashing misleadingly makes a product or company appear more environmentally friendly than the evidence warrants. Photo: Kateryna Hliznitsova / Unsplash
Is silence now golden?
The changes do not prohibit discussion of environmental or sustainability issues, but they directly affect how such messages are worded and what they may seek to achieve. At first glance, the prohibitions may seem absurd and restrictive, but they are designed to protect consumers.
They also protect against unfair competition. A competitor may create a green impression through its communications, appealing more to younger generations or more informed consumers, even though its operations may not actually be more environmentally responsible than those of other companies in the same sector.
Misleading consumers in any way has been prohibited since 2005, but the new requirements explicitly address environmental aspects.
The broader or more ambitious a claim, the stronger its supporting evidence must be. If a company makes forward-looking claims — for example, “We will be climate-neutral by 2050” — these must be supported by an implementation plan approved by an impartial body.
There are more changes protecting consumers than this brief overview can cover. Among other things, companies may no longer present the absence of substances already prohibited in a product category as a distinctive feature of a product. Nor may they conceal from consumers that a software update could impair a product’s performance.
Overall, the new requirements mean that environmental claims must be more precise and based on facts.
What does this mean in practice?
- Before making a generic environmental claim, check whether it can be substantiated.
- Avoid generic expressions such as “green” or “environmentally friendly”: these require evidence.
- Do not use design to create an unjustified impression of environmental friendliness.
- Seek advice where necessary.
- Further examples and explanations are available on the Consumer Protection and Technical Regulatory Authority’s environmental claims page.
