In the near future, sustainable communication will be held to a higher standard of transparency. As the EU’s Greenwashing Directive seeks to eliminate misleading claims from the market, companies will need to develop comprehensive plans for sharing their sustainability efforts. From now on, sustainability communication must be grounded in facts.
A New Milestone in Corporate Sustainable Communication
On March 26, 2024, the EU approved a new consumer protection directive that prohibits greenwashing and deceptive product information. The Greenwashing Directive, set to be fully enforced by 2026, gives companies time to adapt as it is integrated into national legislation across EU member states.
The directive primarily affects communication and marketing strategies in consumer-facing businesses. It prohibits unfounded environmental claims and misleading product information, allowing only certifications from recognized authorities or approved systems . This move is designed to make product labels more transparent and reliable for consumers.
How the Greenwashing Directive Will Impact Companies
While the directive focuses on communication and marketing in consumer-facing sectors, its impact on businesses in general is substantial. It is therefore crucial for companies to begin preparing for the new regulatory requirements before they come into effect. After all, greenwashing regulations will apply to all products and services entering the market in the spring of 2026.
For consumers, the directive makes it easier to make informed, sustainability-conscious choices. Likewise, companies that prioritize transparency and sustainable practices will likely gain a competitive advantage. This can manifest as a positive brand reputation, increased customer trust, and the ability to reach new customer segments.
5+1 Key Changes Businesses Must Prepare For
It is important for companies to evaluate and, if necessary, update the communication and marketing of their products aimed at consumers to meet the new requirements of the Greenwashing Directive. Below are the 5+1 most significant changes that businesses need to address under the new regulation:
- Ban on general environmental claims: The directive proscribes use of vague environmental claims. Terms like ‘environmentally friendly,’ ‘eco-friendly,’ ‘green,’ and ‘sustainable’ can no longer be used without verification.
- Use of sustainability labels and logos: The use of logos related to sustainability will become significantly more regulated. In the future, only sustainability labels based on approved certification systems or established by authorities may be used on products.
- Mandatory verification of environmental performance: Future environmental claims must be based on publicly available and verifiable commitments. Companies can no longer rely on self-established programs or internal claims.
- Prohibition of claims based on carbon offsetting: Claims related to climate impacts, such as ‘climate-friendly’ or ‘carbon neutral,’ will no longer be allowed.
- Precision in environmental claims: Environmental claims must be specific and clearly targeted. They can not be presented as applying to the entire product or company if the claim pertains only to a particular component or operation.
- Clear information for consumers: Consumers must be given accurate and sufficient information about the sustainability, repairability, and recyclability of products. Additionally, a new label indicating extended warranty periods will be introduced, making warranty information more visible.
Rodinia’s Role in the Shift Towards Sustainable Communication
The Greenwashing Directive highlights the growing importance of responsible business actions. Rodinia’s highly skilled and experienced team of sustainability experts offer customized solutions to help businesses communicate their sustainability efforts effectively. Our tested strategies and programs ensure a responsible business culture that yields long-term success.
