On March 27, 2024, Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024 amending Directives 2005/29/EC and 2011/83/EU as regards on Empowering Consumers for the Green Transition through Better Protection against Unfair Practices and Better Information, also known as the “Greenwashing Directive” entered into force. EU Member States now have until March 27, 2026 to transpose it into national law. This Directive amends Directives 2005/29/EC and 2011/93/EU on Unfair Business-to-Consumer Practices, and it is intended to be applied in tandem with the Directive on Substantiation and Communication of Explicit Environmental Claims (The “Green Claims Directive”), which is presently in progress.
The general aim of the “Greenwashing Directive” is to fight misleading information by setting out clear rules on the use of pictorial, graphic, symbolic and textual content that includes sustainability claims in commercial communication, packaging included. Therefore, the specific use of labels such as: ‘environmentally friendly’, ‘eco-friendly’, ‘green’, ‘nature’s friend’, ‘ecological’, ‘environmentally correct’, ‘climate friendly’, ‘gentle on the environment’, ‘carbon friendly’, ‘ energy efficient’, ‘biodegradable’, ‘bio-based’ or similar statements that suggest or create the impression of excellent environmental performance is only allowed in the business-to-consumer context for brands, products, and services if it is verified by official third-party certification schemes or established by public authorities. Examples of sustainability labels established by public authorities include EU Ecolabel, ISO 14024 compliance as well as other logos awarded when complying with the requirements of Regulations (EC) No 1221/2009 or (EC) No 66/2010 of the European Parliament and of the Council. Generic claims such as ‘energy efficient‘ are only allowed if a product or business performance has been recognised in accordance with Regulation (EU) 2017/1369. However, other popular generic claims, such as ‘conscious’, ‘sustainable’ or ‘responsible’ are not further allowed as they relate to both environmental as well as social characteristics, with the latter not specifically regulated just yet.
The directive prohibits advertising of irrelevant benefits that are not directly related to any feature of a specific product or business. Claims on irrelevant benefits usually end up misleading consumers into believing that it is more beneficial for consumers, the environment or society if they choose and use one specific product or business over another of the same type. For example, brands will no longer be allowed to label a product as ‘made with recycled materials‘ when in fact only a percentage of the product, or worse, only packaging, is made with recycled materials. Such claims must be backed by third-party certificates.
Claims such as ‘climate neutral’, ‘CO2 neutral certified’, ‘carbon positive’, ‘climate net zero’, ‘climate compensated’, ‘reduced climate impact’, and ‘limited CO2 footprint’ are expressly prohibited for general claims about offsetting greenhouse gas emissions. Such claims must be substantiated by the actual lifecycle impact of the product and must not extend beyond the product’s value chain. Companies are advised to invest in environmental initiatives, including carbon credit projects, and to advertise such initiatives as long as they provide such information in a way that is not misleading and that complies with the requirements laid down in EU law.
A few other sets of misleading practices were also addressed, though not directly prohibited just yet. The directive attempts to tackle the waste problem by addressing commercial policies that deliberately market products with limited lifespan or durability, or with products that require upgrades that will result in a limited lifespan or durability, and define them as encouraging the sale of such products will lead to the unnecessary use of resources, waste production, greenhouse gas emissions, and ultimately, higher costs for consumers. Fake claims regarding the durability of products have also been addressed. With the rise in popularity of smart clothing and accessories, fashion brands should keep an eye out for any future developments that will specifically target electronic waste.
Last but not least, the Greenwashing Directive has no tangible impact for the vegan cause. The social impact and ethical commitment claims, under which animal welfare is referenced, are not covered in the directive. It remains the decision of Member States whether or not to include the generic “social impact” claims as misleading too. Should a Member State decide to include “social impact” claims as misleading, and therefore potentially illegal, any product labelling of animal welfare contexts will require third party certification. The use of animal-free labels has already been regulated for the cosmetics industry. Until this happens for the fashion and textiles industry, it is all in customers’ hands to request full credibility, verifiability and transparency from vegan brands.