This year, we have seen a significant turning point in the regulation of “sustainability” for businesses. On March 26, 2024, the European Union introduced Directive 2024/825/EU, known as the Green Claim Directive, which aims to regulate the environmental claims of products and services. The phenomenon of greenwashing is giving way to the need for greater transparency and truthfulness in companies’ environmental actions and communication. But what changes does it bring for businesses, and how can they adapt?
Why was the Green Claim Directive necessary?
Pollution, waste, and climate change are at the heart of the international public discussion, and even companies less committed to reducing their environmental impact are trying to claim a space in this conversation.
This is where Greenwashing comes into play, a practice that identifies misleading environmental claims by companies aiming to generate higher profits through consumers loyal to sustainability issues. These claims, often unverified or unsupported by concrete evidence, can mislead consumers, undermining trust in companies and hindering the transition to a more sustainable economy.
According to a study conducted by the European Commission, over 40% of the green claims used by companies in their products were found to be unfounded or misleading. This led the EU to recognize the urgency of establishing clearer and stricter rules to ensure accurate information for consumers. Directive 2024/825/EU was thus introduced to address these issues and promote fairer competition among companies that truly invest in sustainable practices.
The changes it implies for companies
The Green Claim Directive introduces a series of significant changes for companies operating in the European market. These changes mainly concern how companies can communicate the environmental features of their products or services:
Verification of environmental claims:
- Companies will need to ensure that all environmental claims are based on verifiable scientific data and on a methodology recognized at the European level. Vague or generic claims like “eco-friendly” or “green” will no longer be allowed without a clear explanation or proof of what those claims mean and on what basis they are founded.
Transparency obligation:
- Businesses will be required to provide detailed and easily accessible information explaining their environmental claims and the methodologies used to verify them. This includes information on the data used, life cycle analysis of the product, and specific associated environmental impacts.
Ban on unverified certifications:
- The use of environmental labels not verified by third parties will be prohibited. Companies must obtain environmental certifications from independent bodies in order to use environmental labels and claims.
Increased inspections and penalties:
- The competent authorities of member states will have the power to inspect environmental claims and impose significant penalties for violations. This will push companies to review their marketing and communication strategies to comply with the new requirements.
What companies can do:
To comply with Directive 2024/825/EU and avoid the risks of non-compliance, companies should take a series of strategic and operational measures:
- Conduct an internal review of environmental claims to ensure they are backed by robust and verifiable scientific data. This may require the assistance of external consultants or sustainability experts.
- Invest in certifications recognized at the European or international level, which can guarantee the truthfulness of green claims.
- Provide internal training and awareness on the new regulatory requirements to ensure that future corporate strategies align with the directives.
- Develop a monitoring and reporting system through databases.
The Green Claim Directive 2024/825/EU requires companies to be more responsible, transparent, and accurate in their environmental claims. Preparing in advance by taking proactive measures not only strengthens reputation but also avoids the risk of incurring penalties.
Analytical’s support
- We can guide you through testing programs to obtain the European and international certifications your company and product need.
- We assist your work teams by providing training sessions on specific topics.
- We support you with an innovative platform for Environmental Data Management, which will allow you to organize and monitor environmental data related to the Supply Chain.
Contact our team using the form at the bottom of the page to learn about all the services designed for your needs.
