The European Parliament has adopted a directive to enforce a verification and pre-approval system for environmental advertising claims to combat greenwashing, protect consumers and promote sustainable practices.
Under the proposed directive, companies would be required to provide evidence to assigned EU verifiers substantiating environmental claims. Submissions would be assessed within 30 days, but simpler claims and products may undergo quicker or easier verification procedures.
Penalties for non-compliance are significant, including exclusion from public procurement tenders, confiscation of revenues, and fines amounting to at least 4% of the company's annual turnover.
Micro-enterprises would be exempt from these rules, while small and medium-sized enterprises (SMEs) would have an additional year to comply compared to larger businesses.
Following the adoption of the directive, Environment Committee rapporteur Cyrus Engerer said: “It is time to put an end to greenwashing. Our position ends the proliferation of misleading green claims that have deceived consumers for far too long.
“We will ensure businesses have the right tools to embrace genuine sustainability practices. European consumers want to make sustainable choices; all those offering products or services must guarantee their green claims are scientifically verified.”
Commenting on the announcement, The Federation of the European Sporting Goods Industry (FESI) said it welcomed the European Parliament's adoption of the ENVI/IMCO Committees joint position on the Green Claims' Directive proposal and that once in place, the Directive will constitute a "crucial tool" to fight greenwashing, bolstering consumer trust and advancing sustainability efforts across the European Union.
"Today’s vote is a crucial step forward in ensuring that environmental claims are transparent, credible, and substantiated. As representatives of the sporting goods industry, we wholeheartedly support these efforts to combat greenwashing and promote responsible environmental standards for products sold across the EU. However, we call on the policymakers to ensure transparent and harmonised verification procedures that support companies in progressing towards sustainability, without adding excessive administrative burden to the process and hampering innovations” commented Jérôme Pero, FESI Secretary General.
"As we move forward, FESI remains committed to collaborating with policymakers, stakeholders, and industry partners to drive meaningful change and advance sustainability within the sporting goods sector. We look forward to the Council’s future position on this draft Directive and hope to see our legitimate concerns be addressed as part of the upcoming trilogues."
Carbon offsetting and removals
The directive states it maintains a ban on green claims solely based on carbon offsetting schemes. However, companies could mention such schemes in their advertising provided they have already minimised their emissions and use these schemes for residual emissions only.
Carbon credits used in these schemes must be certified and meet high integrity standards, such as those established under the Carbon Removals Certification Framework.
Internal Market Committee rapporteur Andrus Ansip emphasised the necessity of clarity in environmental claims and said: “Studies show that over 50% of environmental claims are vague, misleading or unfounded. We cannot speak about happy consumers if every other green claim is false. We cannot talk about a level playing field for our entrepreneurs while some traders are cheating. I believe the Green Claims Directive adopted today is balanced - it will bring clarity to our consumers and is less burdensome for traders than the claim-by-claim verification.”
Next steps
The directive passed its first reading in parliament, garnering 467 votes in favour, 65 against, and 74 abstentions. The file will now proceed to the new parliament after the European elections scheduled for 6 – 9 June 2024.
Adopting the report is a response to citizens' expectations for transparent labelling regarding product sustainability and environmental impact. It aligns with proposals from the Conference on the Future of Europe, to raise awareness among both companies and consumers regarding sustainable practices.
