In a bid to shield consumers from deceptive environmental advertising, the European Parliament has advanced its stance on establishing a verification and pre-approval system for environmental marketing claims.
Under the proposed green claims directive, companies must substantiate claims such as “biodegradable,” “less polluting,” “water-saving,” or “bio-based content” before promoting their products. EU member states would appoint verifiers to scrutinize and pre-approve these assertions, aiming to safeguard buyers against misleading and ambiguous marketing tactics.
The directive outlines deadlines, penalties, and exemptions, with parliamentarians advocating for streamlined verification processes, particularly for simpler claims and products. Micro-enterprises would be exempt from the regulations, while small and medium-sized enterprises (SMEs) would receive an additional year to comply compared to larger corporations. Penalties for rule violators could include temporary exclusion from public procurement tenders, revenue loss, and fines of at least 4 percent of annual turnover.
Notably, the directive maintains a ban on green claims solely based on carbon offsetting schemes. However, companies may reference offsetting and carbon removal initiatives in advertisements if they’ve already maximized emissions reduction efforts. These initiatives must adhere to certified carbon removal frameworks to ensure integrity.
Furthermore, the directive permits green claims for products containing hazardous substances for now, pending a forthcoming assessment by the Commission on potential bans.
Highlightsing the importance of the directive
In a press conference following the vote, rapporteurs emphasized the necessity of combatting greenwashing and providing consumers with scientifically verified sustainability information. They assert that the directive aims to empower consumers to make informed choices and encourage businesses to adopt genuine sustainability practices.
With 467 votes in favor, 65 against, and 74 abstentions, Parliament’s first reading position sets the stage for further legislative action following the European elections in June 2024.
The directive aligns with citizens’ demands for transparent sustainability labeling, as voiced at the Conference on the Future of Europe.
FESI applauds the new proposal
The Federation of the European Sporting Goods Industry (FESI) welcomes the EU Parliament’s adoption of the Green Claims Directive proposal, aiming to combat greenwashing and enhance consumer trust. The federation says they “fully support the European Parliament’s compromise proposal, which empowers the European Commission to establish, through secondary legislation, simplified or shortened procedures and a presumption of conformity for certain environmental claims.”
They also welcome the introduction of the deadline of 30 days for verifiers to complete the certification process. Meaning that it will also help “streamline the whole process and provide companies with much-needed certainty and transparency.”
“Today’s vote is a crucial step forward in ensuring that environmental claims are transparent, credible, and substantiated. As representatives of the sporting goods industry, we wholeheartedly support these efforts to combat greenwashing and promote responsible environmental standards for products sold across the EU,” Jérôme Pero, FESI Secretary General, commented. ”However, we call on policymakers to ensure transparent and harmonized verification procedures that support companies in progressing towards sustainability without adding excessive administrative burden to the process and hampering innovations.”
