Change Inc · Duurzaamheid

New European directive aims to prevent greenwashing, but causes much uncertainty

From 27 September, the European directive 'Empowering Consumers for the Green Transition' (EmpCo) will come into effect, aiming to combat greenwashing. Companies will only be allowed to make sustainability claims if they can substantiate them and provide clear information about them. However, the directive is causing a lot of uncertainty among companies.

The EmpCo directive is an adaptation of existing legislation on unfair commercial practices. Legal experts warn that interpreting the directive without legal knowledge is difficult because it involves complex consumer law. The goal is to clarify when there is a risk of deception regarding sustainability. Claims must be substantiated, and information about them must be accessible, not hidden on a website.

The use of proprietary sustainability logos, as Unilever did, and the designation of products as 'climate neutral' through CO2 offsetting will be prohibited. A sustainability claim is any statement that gives the consumer the impression that a product has an environmental or climate benefit, such as text or images on packaging, websites, or in advertisements. The point is that the consumer perceives the product as more sustainable than it actually is, regardless of the company's intention.

There is no concrete list of proof requirements for sustainability. In general, external analyses are considered more reliable than internal studies. The Netherlands Authority for Consumers and Markets (ACM) provides guidelines for sustainability claims. The directive should help truly sustainable entrepreneurs distinguish themselves, but it may initially entail additional costs and work for small sustainable businesses.

The uncertainty surrounding the directive stems from the room for interpretation. The assessment of deception depends on the context and the specific words or formulations used. There is no definition of what constitutes a quality mark. Each EU country has its own supervisory authority, such as the Dutch ACM, which is responsible for enforcement. Fines are a means to prevent deception, but they can be imposed if claims are not adjusted.

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