Sustainability & compliance
Sustainability used to be a mere buzzword, now it has become a crucial factor in the decision to buy. Consumers nowadays appreciate products that are environmentally friendly, packaging that can be recycled, and companies that take responsibility. Businesses are under growing pressure to make not only attractive environmental claims, but to phrase them in such a way that they are legally sound. Otherwise, they risk being suspected of greenwashing, with enormous damage to the customers’ trust in the company.
The European Union recognized this problem and is therefore working on stricter rules for so-called “green claims”. The planned Green Claims Directive (current status: negotiations suspended until further notice due to disagreements) will introduce clear regulations in regard to green claims. They are meant to protect the consumer and to ensure transparency.
We will take a detailed look at the provisions below.
Green claims: Definition and challenges
Green claims are environmental claims that businesses use to promote their products, services or processes. Typical examples:
- “climate neutral”
- “environmentally friendly”
- “100% recyclable”
These kinds of expressions have a positive effect because they make the consumer feel good. But what do they really mean? That is often unclear. “Climate neutral”, for example, does not necessarily mean that the manufacturing process of a product was emission-free; more often than not, it just means carbon offsetting.
The risks are great for companies and Amazon sellers alike:
- Allegations of greenwashing → loss of customers’ trust
- Legal consequences → warnings, fines
- Damage to the reputation → hard to be undone in the long run
Overview of the new EU Green Claims Directive
To prevent ambiguous claims, the EU wants to establish clear rules in the Green Claims Directive. Some of the key provisions:
- Substantiation: Any environmental claim must be scientifically verifiable (e.g., life cycle assessments, certificates).
- Prohibition of ambiguous terms: Claims such as “environmentally friendly” or “sustainable” are no longer admissible without proof.
- Conclusive comparisons: If you claim lower carbon emissions, you have to clearly specify the reference value used.
- Independent verification: Claims have to be verified by a third party.
- Schedule: The implementation schedule is still unclear.
Responsibility is increasingly shifted to the companies, and at the same time, the credibility of green claims as a whole increases.
Implementation by sellers and businesses
The new Directive means more work for companies and Amazon sellers, but it also provides an opportunity to distinguish yourself. The key is phrasing legally incontestable green claims and providing clear evidence.
Green claim dos & don’ts:
Admissible:
- “100% recyclable” (if every component is verifiably recyclable)
- “30% lower carbon dioxide emissions than the previous model” (clear basis of comparison)
Inadmissible:
- “sustainably produced” (lack of proof)
- “environmentally friendly” (too vague, no specification)
Advice for companies and Amazon sellers:
- Establish in-house verification processes: Marketing, Legal and Sustainability should develop the claims to be used together.
- Use recognized labels: e.g., Blue Angel, EU Ecolabel.
- Ensure transparency: Provide evidence by means of QR codes or on your website.
- Involve third-party experts: Certificates and expert opinions boost your credibility.
How to communicate sustainability in the future
The Green Claims Directive is just one component in the increasing regulation in the field of sustainability. Pressure on businesses will continue to increase due to regulations such as the Corporate Sustainability Reporting Directive (CSRD) or the Supply Chain Act.
This certainly poses a challenge, but it also provides an opportunity:
- to boost your credibility with verified and verifiable claims
- to gain the trust of customers who value transparency
- to gain a competitive edge by being prepared from the start
To summarize:
Green claims are a powerful marketing tool, but only if they are truthful, verifiable, and clear. If all the current disagreements can be resolved, the new EU Directive will provide for clear rules, and obligate businesses to provide scientifically sound evidence of their claims.
Now is the time for you to take a critical look at your advertising statements, obtain evidence, and establish in-house processes. Being prepared will help you not only to avoid risks, but also to establish your company as a trustworthy, sustainable business in the long run.
FAQ: Frequently asked questions about green claims and the EU Directive
1. Can I promote my product as “climate neutral” if I use carbon credits?
Yes, but only under the following conditions: The company must specify whether they achieve climate neutrality by actually reducing emissions in production or by using carbon credits to offset their emissions. Without this clarification, the claim is deemed to be misleading. Consumers have to be able to see how climate neutrality is achieved at first glance.
2. Do I need to amend my advertising material?
Yes, because the new Directive also covers previously made claims. Businesses are required to review and, if necessary, adapt their marketing documents, packaging, and website texts. If you keep using inadmissible claims such as “environmentally friendly” or “sustainable”, you risk getting a warning and fines.
3. Which penalties may be imposed in the case of an infringement of the Green Claims Directive?
In order to prevent greenwashing, the EU is providing for severe penalties, ranging from fines to actions for injunction, not to mention the damage to your reputation. The specific penalties will be defined by the member states, but businesses had better be advised that infringements may be costly.
4. How do I phrase legally watertight green claims?
- Use specific and verifiable claims (“packaging made of 85% recycled plastic” instead of “sustainable packaging”).
- Keep records of supporting documents such as life cycle analyses, studies or certificates.
- Have your claims verified by an in-house compliance team or a third-party certification organization.
- Communicate clearly, e.g., by way of product websites or QR codes linked to detailed information.
Conclusion and outlook
With the Green Claims Directive, the EU is sending a clear signal: In the future, environmental claims have to be based on more than good intentions, namely on sound evidence. The Directive promises greater clarity, reliability and consumer protection, but it entails some new problems for businesses.
However, negotiations are currently stalled, and we do not know if the Directive will enter into force in 2026 as planned. It is still advisable to take certain steps now. In Germany and other EU states, environmental claims that cannot be verified or that are evidently misleading may already be considered anti-competitive and denounced by competitors, e.g., by way of a written warning from a lawyer. This primarily concerns e-commerce sellers using claims such as “environmentally friendly” or “sustainably produced” without providing proof of such claims. The legal risks are real, even today, irrespective of the planned, stricter EU Directive.
Acting now gives you a clear advantage. Businesses that choose to review their green claims, document evidence and establish in-house coordination processes now instead of later are not only well prepared for future regulations, but also strengthen their customers’ trust. Even if the Green Claims Directive is delayed, customers are already expecting green claims to be credible and reliable.
Who wrote this article?
As an author, Christina fills the blog section of our website with exciting and informative articles, so that our readers can always take care of product compliance in their company in the most well-informed way.
