Green Deal: measures against greenwashing

Jul 25, 2024Audit / Sustainability

On January 17, 2024, the European Parliament approved the Empowering Consumers for the Green Transition Directive (EmpCo Directive), which was confirmed by the Council of the European Union on February 20, 2024

This directive came into force on March 26, 2024 and must be transposed into national law by March 27, 2026. The new regulations must then be applied from September 27, 2026. The aim is to combat greenwashing and promote transparency so that consumers can make informed decisions.

Background and goals

Climate neutrality, sustainability and environmental friendliness are becoming increasingly important for consumers, as they increasingly demand clear and truthful information about the sustainability of products and services. This is precisely where the new guidelines come in: They are designed to combat greenwashing, increase transparency and enable consumers to make informed decisions. While deception and misleading advertising can be legally punished and greenwashing is already prohibited, the new guidelines provide additional clarity and protection.

For example, the Karlsruhe Regional Court (case no. 13 O 46/22 KfH) ruled that forest protection does not lead to climate neutrality, and the Düsseldorf Higher Regional Court (case no. I-20 U 72/22) ruled that precise information is required for climate neutrality advertising.

Important changes and additions

The Green Claims Directive, which was adopted on March 12, 2024, goes one step further by stipulating that all sustainability-related advertising claims must be scientifically substantiated and certified. The aim is to combat greenwashing, promote the green transition and improve the legal certainty and competitiveness of companies.

Regulating the use of sustainability labels

The national implementation laws will provide clarity and further details. However, it is clear that in future, sustainability labels must be based on a certification system or be established by government bodies. In many cases, accredited auditing companies will have to be involved. This will be mandatory under the Green Claims Directive. Competence and independence must comply with international standards such as DIN EN ISO/IEC 17065 and Regulation (EC) No. 765/2008. These innovations provide more clarity and credibility in the area of sustainability seals.

What companies need to consider

The package of directives applies to all companies in the EU. Environmental claims in particular must be subjected to strict checks and possibly validated before they can be marketed. Companies should rely on recognized international standards and have their sustainability reports checked by independent third parties to avoid legal risks.

You are welcome to contact us for further information and to find out how our services can help you meet the requirements, in particular the validation and verification of carbon footprints at organizational, project or product level.

Important Note

It is advisable to find out about the new requirements at an early stage and to take appropriate measures to comply with the new regulations. Specialized service providers are available to provide detailed information and support, particularly for the validation and verification of greenhouse gas declarations.

The new EU guidelines against greenwashing are a milestone for organizations that want to live and communicate sustainability authentically. The new guidelines promote transparency and reliability in sustainability claims and create new trust among unsettled consumers. Organizations now have the opportunity to position themselves credibly and stand out from misleading market participants.

Matthias Reichenbach, Project Manager Sustainability Team at DEKRA Certification GmbH

FAQ

The EmpCo Directive strengthens consumer protection by setting clear requirements for sustainability claims and combating greenwashing. The Green Claims Directive requires companies to have sustainability-related claims scientifically substantiated and certified. This is intended to increase transparency and ensure that consumers can make informed decisions.

The EmpCo Directive came into force on 26 March 2024. Companies must transpose the new regulations into national law by 27 March 2026 and apply them from 27 September 2026. The Green Claims Directive is expected to enter into force shortly after approval by the EU Council.

Prohibited are:

“Own” sustainability seals without an official certification system
General environmental claims without substantiated evidence
False environmental claims
Advertising with emissions offsetting that does not demonstrate a real reduction in emissions
Social washing, i.e. the use of sustainability issues for marketing purposes without any actual environmental impact
Advertising with future environmental performance that has not yet been achieved

Sustainability seals must be based on recognized certification systems or be approved by government bodies. Accredited testing companies must check these seals to ensure that they comply with international standards, such as DIN EN ISO/IEC 17065.

Companies should base their sustainability claims on international standards and have them validated by independent third parties. It is advisable to find out about the new regulations at an early stage to ensure that all claims are scientifically sound and verifiable. Regular audits and compliance with standards are essential.

Companies can use specialized service providers for the validation and verification of greenhouse gas declarations and other sustainability reports. These service providers help to meet the new requirements by carrying out audits and certifications in accordance with international standards.

Regulation increases transparency by ensuring that all sustainability claims are objective, verifiable and publicly accessible. This promotes consumer confidence in companies' sustainability promises and contributes to a fairer competitive environment.

Compliance with the new guidelines not only promotes consumer confidence and protects against legal risks, but also strengthens the competitiveness of companies. Credible sustainability reports and transparent practices enable companies to improve their market position and position themselves as responsible market participants.

Companies should familiarize themselves with the new regulations at an early stage and seek legal advice or support from specialist consultants if necessary. Implementing a compliance program that takes the new requirements into account can help to ensure compliance and minimize potential risks.

Individuals and organizations with a “legitimate interest” can complain to the national authorities. Consumers can do this through consumer associations. Fines and other legal measures can be imposed for violations. Companies should therefore ensure that their sustainability claims are regularly reviewed and adapted to the new requirements.