The EU is taking steps to tighten regulations on misleading labeling claims that pertain to a product’s ‘green’ credentials. A provisional agreement has been reached by the European Parliament and the European Council to ban advertisements and labels such as climate neutral and environmentally friendly in order to combat greenwashing – the practice of making false or unsubstantiated claims about a product’s environmental benefits. The proposals are set to be voted on in November and EU member states will have two years to enforce them.
In March, the European Council implemented measures to establish minimum requirements for substantiating green claims, requiring them to be science-based and third-party certified. The new prohibitions build upon this by adding several problematic marketing practices related to greenwashing and the premature obsolescence of goods. The aim is to protect consumers from misleading practices and enable them to make more informed purchasing decisions.
The proposed regulations also ban terms such as natural, biodegradable, and ‘eco’ unless there is evidence of recognized excellent environmental performance. Likewise, claims based on emissions offsetting schemes that imply a product has a neutral, reduced, or positive impact on the environment will be barred. Sustainability labels not based on approved certification schemes or established by public authorities will also be prohibited.
Parliament member Biljana Borzan, who reported on the proceedings, said, “We are tackling the confusion caused by environmental claims, which will now have to be backed up, and claims based on emissions offsetting will be banned.”
Pressure to address greenwashing has been growing, particularly within the food and beverage industry. The Changing Markets Foundation found that 80% of green claims related to food were about climate, and many of these were found on the most carbon-intensive meat and dairy products. Several companies have faced criticism and action over misleading labels, such as Danish Crown removing its ‘climate-controlled’ pork labels and Unilever, The Coca-Cola Co., and Tesco being linked to greenwashing claims over plastic packaging.
The agreement between EU institutions regarding tightening regulations on greenwashing shows a shift in the tide, especially when it comes to vague claims like natural or environmentally friendly that consumers encounter daily. The ban on carbon-neutral claims based on offsetting, which have proliferated in recent years, is particularly welcomed.
