How EU is tackling greenwashing
- hrvatinstella
- Apr 15
- 2 min read
Companies in EU often use sustainability as a tool to sell their products. However, many claims of "green", "eco-friendly" or "fair" products and services are not necessarily sustainable. Due to many companies making claims that mislead consumers which puts truly sustainable companies into disadvantage, EU is taking action to address greenwashing and protect consumers, and the environment.
Example of green claims --> “Packaging made of 30% recycled plastic” --> “CO2 emissions linked to production of this product halved as compared to 2020” --> "This product is carbon neutral" |
Proposed new law on green claims should ensure that environmental labels and claims are credible and trustworthy allowing consumers to make better-informed purchasing decisions. It will also boost the competitiveness of businesses striving to increase the environmental sustainability of their products and activities.
To ensure consumers receive reliable, comparable and verifiable environmental information on products, the proposal includes
clear criteria on how companies should prove their environmental claims and labels
requirements for these claims and labels to be checked by an independent and accredited verifier and
new rules on governance of environmental labelling schemes to ensure they are solid, transparent and reliable
Why is this important?
Market demand is driving green transition. The recently adopted Green Deal Industrial Plan reiterates the need to allow consumers to make their choices based on transparent and reliable information on the sustainability, durability and carbon footprint of the products, and highlights that market transparency is a tool facilitating uptake of technologically and environmentally superior net zero products.
SMEs do not have incentives to innovate and make their products more sustainable if there are others claiming their products are sustainable while making no real effort thus having more competitive prices.
How will the new rules affect companies in the EU?
Companies in the EU will need to prove that their environmental claims are accurate and clearly explained. These claims must be checked by an independent verifier to meet EU rules. If approved, the company will get a certificate that's valid across the EU.
This new system will help honest, eco-friendly companies stand out and compete better, while encouraging all businesses to reduce their environmental impact.
Benefits for sustainable SMEs
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What can you do?
Apply for EU Ecolabel, a trustworthy sustainability label with guaranteed low environmental impact. EU Ecolabel is official EU voluntary label which guarantees a reduced environmental impact throughout the product’s entire life-cycle and is awarded to products with high performance. Products with EU Ecolable pass strict independent third-party verification guaranteeing sustainability.
The Sustainability Office can help you adapt your products and business operations to the criteria of the EU Ecolabel and assist you in applying for the label, making your products more competitive on the market.
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