“Sustainability in Action” Series

By V. Mylomeli

As sustainability becomes a key driver of business strategy, companies are increasingly making Green Claims—statements about the environmental benefits of their products, services, or overall operations. These claims are commonly used in marketing, product packaging, and corporate sustainability reports. However, in an era of increasing regulatory scrutiny, it is essential that such claims are transparent, verifiable, and compliant with EU legislation to avoid the risks of greenwashing—misleading environmental communication that can damage brand credibility and lead to legal repercussions.

The New Regulatory Landscape for Green Claims

The European Union is taking steps to regulate environmental claims and ensure that sustainability messaging is based on real impact, not vague promises. Several key policies define the new landscape for corporate sustainability communication:

• The Green Claims Directive (Under Development): The European Commission is working on a directive that will establish clear rules for making environmental claims. Companies must provide scientific evidence and reliable data to support statements such as “environmentally friendly” or “carbon neutral.” Generic claims will only be permitted if backed by verifiable proof.
• The Unfair Commercial Practices Directive (UCPD) Update: The revised UCPD bans misleading claims, such as vague sustainability statements without evidence and carbon-neutral claims based solely on carbon offsetting, rather than actual emission reductions.
• EU Ecolabel and ISO 14021:2016: These frameworks set clear guidelines for claims such as “recyclable,” “biodegradable,” and “recycled content.” For example, a product labeled “biodegradable” must specify the degradation conditions and timeframe.
• EU Taxonomy & SFDR (Sustainable Finance Disclosure Regulation): These regulations affect financial institutions and investment products, ensuring that sustainability claims in finance are transparent, measurable, and standardized.

Types of Green Claims & Common Pitfalls

Companies making sustainability claims fall into different categories:

✅ Valid Green Claims

• “This product is made from 100% recycled paper, certified by FSC.”
• “The packaging is biodegradable according to the EN 13432 standard.”

❌ Examples of Greenwashing

• “Environmentally friendly” (without explanation or evidence).
• “Sustainable product” (without clear sustainability criteria).

Greenwashing can take many forms, including vague statements, selective disclosure of environmental benefits (ignoring negative impacts), and reliance on offsetting instead of real action. To ensure credibility, companies should base their claims on Life Cycle Assessments (LCA), scientific studies, and third-party certifications.

Next Steps & How We Can Help

At Green2Sustain, we help businesses navigate the evolving regulatory landscape and build credible, data-driven sustainability strategies. Our consultancy services include:

• Regulatory Compliance Support: Ensuring your green claims align with EU regulations and sustainability reporting requirements.
• Life Cycle Assessment (LCA): Providing scientific validation for environmental impact claims.
• Third-Party Certification Guidance: Assisting businesses in obtaining EU Ecolabel, FSC, and ISO 14021 certifications for their products.
• Corporate Sustainability Communication: Crafting sustainability messaging that is clear, verifiable, and resistant to greenwashing accusations.

By ensuring transparency and compliance, businesses can build consumer trust, avoid legal risks, and position themselves as true sustainability leaders.