Do you have a feeling that your business might be doing a bit of greenwashing?
It’s time to rethink your sustainability strategy. New rules, in the form of the Green Claims Directive, are being introduced to stop greenwashing, and they will be here as early as next March.
Here’s a quick overview:
What’s the purpose of these regulations?
- Consumers want sustainable products, and the Green Claims Directive ensures truthful claims.
- A 2020 study found over half of environmental claims were vague or misleading
Main takeaways:
- The Green Claims Directive aims to improve information reliability for consumers and make it easier to choose environmentally friendly products.
- Companies must meet specific criteria and get independent verification for environmental claims
- Transparent, reliable, and regularly reviewed environmental labels will be encouraged
- The rules create a fair business environment in the EU and impact global value chains positively
Let’s think about the regulations and compliance:
- Brands, suppliers and retailers must substantiate claims with scientific evidence and independent verification
- Comparative claims must be clear about environmental impacts
- Transparent, reliable, and robust labels are encouraged
- Self-certification for sustainability labels will be banned
Any exemptions?
- Rules don’t apply to claims regulated under other legislation
- Micro-enterprises are exempt unless they seek EU-recognised certificates
How will this all be monitored and what are the fines?
- National authorities will monitor compliance
- Fines of up to 4% of annual revenue for widespread infringements
What’s happening in the sort- to mid-term?
- Committees have started to review the draft report from 9th Nov 2023
- Committee vote in mid-Feb 2024, with a plenary session in March 2024 for final approval
- Once adopted, EU rules apply within 24 months (expected as early as March 2024)
So what can you do now?
It might be an idea to get your teams together to identify areas where you are being less than transparent about the green credentials about your products, services and supply chain. And then work out how to cut out the greenwashing, and think strategically about better, more sustainable solutions.
We offer a range of sustainability-themed team-building workshops to bring you together and kick-start the thinking process. We also offer custom-designed problem-solving, strategic planning and Agile workshops to help you move in new and sustainable directions.
Curious? Get in touch and let’s see what we can do together!