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Germany’s ruling on becoming climate neutral will have an impact on food marketing.

Germany's ruling on becoming climate neutral will have an impact on food marketing. ESG, Pan-industry Food and Beverage Business

The recent ruling from Germany’s Federal Court of Justice regarding confectioner Katjes’ use of the term ‘climate neutral’ will have a significant impact on food advertising and labeling in the food and beverage industry. Industry experts have emphasized the need for companies to thoroughly substantiate their environmental claims to avoid legal challenges. Stefanie Sabet, the managing director of BVE, Germany’s food and drink industries federation, highlighted the potential increase in costs and operational adjustments as a result of stricter proof standards.

Furthermore, terms such as ‘CO2 neutral’, ‘eco-friendly’, and ‘resource-saving’ are also likely to be affected by this ruling. Companies will only be able to use these terms if they can provide clear evidence and a transparent methodology supporting their claims. Despite this, Sabet mentioned the existing uncertainty due to the lack of clear EU-wide regulations on green claims.

Leonie Evans, a partner at Munich law firm Meisterernst, described the ruling as strict, emphasizing the need for clarity in using green claims. She mentioned past cases that ruled against climate-neutral claims based on compensation measures instead of reduction. Evans believes the ruling will bring clarity to the use of green claims and impact similar environmental claims within Germany.

Evans also referenced a new EU law, the ’empowering consumers for the green transition’ directive, which sets guidelines for environmental claims. The directive states that claims like ‘CO2 neutral certified’ and ‘carbon positive’ should be based on the actual lifecycle impact of the product, not on offsetting greenhouse gas emissions outside the product’s value chain.

Overall, the ruling from Germany’s Federal Court of Justice underscores the importance of transparency and substantiation in environmental claims within the food and beverage industry. As the industry navigates evolving regulations and consumer expectations, companies will need to adapt their marketing and labeling strategies to meet these new standards.

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