In March 2024, the European Parliament voted in favour of a strong EU Green Claims Directive or GCD, with the aim of stopping greenwashing and unsubstantiated green claims for European businesses, or products sold within the EU.
Understanding the GCD and its relevance to the marine industry is essential for all businesses, and particularly those communicating about sustainability, to make sure you don't accidentally end up in hot water.
So what is the EU GCD?
The EU GCD will be a piece of legislation aimed at ensuring that environmental claims made by businesses about their products and services are reliable, comparable, and verifiable. It sets out the minimum criteria that companies need to meet when making any sustainability claim and the actions they should take. The directive is part of the European Green Deal, which seeks to make Europe climate-neutral by 2050 and promote sustainable growth. Here are the key aspects of the Green Claims Directive:
Objectives of the EU Green Claims Directive
Combat Greenwashing The primary objective is to prevent greenwashing, where businesses make unfounded or misleading claims about the environmental benefits of their products or services.
Enhance Consumer Trust Ensure that consumers can trust the environmental claims they encounter, enabling informed decision-making.
Promote Transparency Increase the transparency and reliability of environmental claims by establishing clear guidelines and requirements for businesses.
So, what does this mean in practice for claims and communications?
Carbon Neutral Product Claims Carbon neutral shampoo or petrol based on offsetting? That has come to an end. Claims about carbon neutral products can not be made based on purchasing offsets to make a product 'carbon neutral'.
Sustainable, Green, Ethical, Eco? All claims made about companies and their products that contain any kind of green wording all need to be substantiated by real data.
Key Requirements
Substantiation of Claims:
Businesses must provide scientific evidence and data to substantiate any explicit environmental claims about their products or services.
Claims must be based on recognized scientific methodologies and standards, such as complete carbon footprinting through a recognised standard such as the GHG Protocol or ISO 14064 or for products, a robust life cycle assessment.
Third-Party Verification
Environmental claims made by a business must be verified by independent third parties to ensure their accuracy and reliability.
This verification process must be conducted by accredited organizations to maintain high standards.
Clear and Comparable Information
Claims must be communicated in a clear, understandable, and non-deceptive manner.
Information provided must be easily comparable with similar products or services, allowing consumers to make informed choices.
Documentation and Reporting
Businesses are required to maintain documentation supporting their environmental claims and make it available to authorities upon request.
Regular reporting to relevant authorities may be mandated to ensure ongoing compliance.
Penalties for Non-Compliance
The directive outlines penalties for businesses that fail to comply with the requirements, including fines and potential bans on marketing certain claims.
Scope
Applicability
The directive applies to all businesses operating within the EU that make explicit environmental claims about their products or services, regardless of the sector.
Exclusions
Implicit claims, such as those made through imagery or general branding that are not specific about environmental benefits, may not be covered directly by the directive but are still subject to general consumer protection laws.
Impact
For Businesses
Increased Responsibility: Businesses will need to invest in scientific assessments and third-party verification to substantiate their claims.
Market Differentiation: Companies with genuine sustainable practices can differentiate themselves and gain consumer trust.
For Consumers
Better Information: Consumers will have access to more reliable and comparable information, making it easier to choose sustainable products.
Increased Trust: Enhanced trust in environmental claims can encourage more sustainable consumption patterns.
For the Environment
Positive Environmental Impact: Reducing greenwashing can lead to a more significant shift towards genuinely sustainable products and practices, benefiting the environment.
Implementation
Timeline
The directive will have a specific timeline for implementation, including transitional periods for businesses to comply with the new requirements.
Guidelines and Standards
Detailed guidelines and standards will be developed to assist businesses in substantiating and verifying their environmental claims.
What Next
The EU Green Claims Directive represents a significant step towards enhancing the credibility of environmental claims and promoting sustainable practices within the European Union. By ensuring that claims are substantiated, verified, and communicated clearly, the directive aims to protect consumers from misleading information and support the transition to a more sustainable economy.
This is hugely positive for the environment and for consumers, but can present a minefield for businesses to navigate and potentially high costs in obtaining this data.
The seaotool has been developed to help with exactly this challenge. Access carbon footprinting software that aligns to the GHG Protocol, the leading global standard in carbon footprinting and get support from our team to measure and verify your carbon footprint. Through our network of partnerships, access LCA consultancy to suit any level of complexity.
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