EU Greenwashing Directives I

Keith Mullin
35 years: Capital markets editorial
Tired of misleading eco-claims? Keith Mullin unpacks the Empowering Consumers Directive that bans greenwashing and helps you make informed, sustainable choices.
Tired of misleading eco-claims? Keith Mullin unpacks the Empowering Consumers Directive that bans greenwashing and helps you make informed, sustainable choices.
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EU Greenwashing Directives I
12 mins 6 secs
Key learning objectives:
Understand the EU Empowering Consumers Directive
Outline the key provisions and impact of the Directive
Understand the broader implications of the Directive
Overview:
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- Banning vague and unverified environmental claims: Traders can no longer claim that products or businesses are ‘climate-neutral’ or ‘eco-friendly’ without credible, third-party verification
- Requiring clear, specific, and evidence-based claims: Claims must be backed by publicly available, objective, and verifiable commitments with realistic implementation plans
- Cracking down on misleading product comparisons: Comparisons between products must be objective, based on up-to-date methods, and relate to products serving the same function
- Preventing misleading sustainability labels: Only labels based on recognised certification schemes or established by public authorities will be allowed.
- Restricting green claims based on carbon offsets: Traders cannot claim products have a ‘neutral’ or ‘positive’ environmental impact solely based on offsetting emissions
- Prohibiting irrelevant environmental claims: Marketing claims about features already required by law are now forbidden
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