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Green on the Tag, But How Green Underneath? Understanding the Impact of the EU Greenwashing Directive on Fashion

The European Union is taking a bold step against greenwashing in the fashion industry with a new Greenwashing Directive included in the European Green Deal. The EU’s Directive is more than a regulatory measure; it’s a call to action for the fashion industry to align its practices with the decarbonization goals that the EU is pursuing. It encourages brands to rethink their climate impact, from production to promotion, and to engage in a more transparent dialogue with their customers. Set to reshape the industry by mid-2026, this Directive not only targets greenwashing but also heralds a new era of consumer empowerment. It demands that fashion brands align their marketing with consistent sustainability efforts, ensuring that claims of green practices are not just statements with little or no content, but a real change in business models. The Heart of the Directive: Defining and Regulating Environmental Claims At its core, the Directive takes a firm stance on “generic environmental claims” – those broad statements made across various media, lacking specific substantiation right where the claim is made. Phrases like “biodegradable” or “eco-friendly” will now face rigorous scrutiny unless accompanied by precise, verifiable information. For instance, a claim that packaging is “biodegradable within one month in home composting” is considered specific and thus acceptable under the new regulations. Sustainability Labels: Beyond Environmental Aspects The Directive also casts a spotlight on “sustainability labels”, expanding their scope to include not just environmental, but social characteristics as well. This move underscores a holistic approach to sustainability, recognizing that true environmental stewardship goes hand in hand with social responsibility. Labels must now be backed by a certification scheme or established by public authorities, ensuring their credibility and relevance. Blacklisted Practices: A Clear Boundary Against Misleading Claims One of the Directive’s most potent tools against greenwashing is the introduction of a “blacklist” of business practices deemed unfair under all circumstances. This includes the use of sustainability labels not based on solid certification schemes or those developed by companies without third-party verification. The Directive makes it clear: to wear the mantle of sustainability, one must bear the weight of proof. Stricter Regulations on Greenhouse Gas Claims In an era where carbon footprints are moving to be as much a part of product descriptions as sizes and colors, the Directive tightens the noose on claims related to greenhouse gas emissions. Statements like “climate neutral” or “CO2 neutral certified” are now permissible only if they refer to actual effects on the product’s life cycle, not just offsetting measures outside the product’s value chain. A Timeline for Transition The Directive sets a timeline for its implementation, with member states given 24 months to incorporate it into national law, followed by a six-month grace period for companies to comply. By mid-2026, the fashion industry must align with these new standards, marking a significant milestone in the journey towards genuine sustainability. The Directive’s Impact on the Fashion Industry For the fashion industry, this Directive is not just a regulatory hurdle but an opportunity to redefine its relationship with sustainability with the aim to remain competitive. Brands are now compelled to ensure that their environmental claims are not only accurate but also meaningful. This push towards transparency is expected to foster a deeper trust between consumers and brands, paving the way for more sustainable consumption practices. In conclusion, the European Union’s Greenwashing Directive is a bold step forward in the fight against greenwashing in the fashion industry. By setting clear, enforceable standards for environmental claims and sustainability labels, it challenges brands to live up to their green promises, ensuring that the future of fashion is not just stylish, but sustainably so. For advice on how the Green Initiative can help your company address the new Directive to develop its competitive advantage, please contact us. Written by Alexandra Goodman from the Green Initiative team.

The European Union Raises the Bar on Climate Claims: Why Tackling Greenwashing is Key to Empowering Consumers for a Sustainable Future

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The European Union has taken a significant leap forward in its commitment to a sustainable future with the European Parliament’s adoption of the Directive on empowering consumers for the green transition (EmpCo Directive). This groundbreaking legislation amends the Directives on unfair commercial practices (2005/29/EC) and consumer rights (2011/83/EU) to establish stricter requirements for environmental and sustainability-related advertising, marking a critical step in the fight against greenwashing and towards a culture of transparency and accountability to support the green transition and the circular economy. Clarifying Environmental Claims At the heart of the EmpCo Directive is the introduction of limits on making generic environmental claims, and on the use of sustainability labels. This aims to ensure that when products claim to be “green”, “eco-friendly” or “ecological”, the claims are substantiated and meaningful, cutting through the fog of vague or misleading marketing. In particular, the Directive targets climate claims such as “climate friendly” or “climate neutral”, requiring them to be supported by clear, objective, publicly available and verifiable corporate commitments and targets, set out in a detailed and realistic implementation plan that shows how these commitments and targets will be achieved and how resources will be allocated, and regularly verified by an independent third party, with the results made available to consumers. Combatting Greenwashing One of the most powerful aspects of the EmpCo Directive is its ‘blacklist’ of unfair commercial practices. Practices that are considered inherently unfair include 1) the use of sustainability labels that are not based on a certification scheme or established by public authorities, 2) the use of generic environmental claims that are not based on evidence of recognized excellent environmental performance, and 3) the claim that a product has a neutral, reduced or positive environmental impact in terms of greenhouse gas (GHG) emissions based on GHG offsetting. By eliminating deceptive practices from the outset, this will make it easier for consumers to trust the sustainability claims they encounter, while ensuring a level playing field for companies. This provides clarity and transparency for those companies that already follow international best practice in sustainability certification. Implementing the Change The EmpCo Directive sets out a timetable for EU Member States to transpose these rules into national law, with full implementation expected by mid-2026. The transition period provides businesses with an opportunity to start aligning their practices with the new rules, while pursuing decarbonization and integrating science-based climate- and nature-positive practices into their operations and communicating them to customers. As such, the Directive not only empowers consumers but also challenges businesses to innovate and truly embed sustainability into their operations. It represents a collective step towards a more sustainable and equitable European market, where consumers can make informed choices, and businesses compete on the authenticity of their commitment to the planet. Environmental labels based on a certification scheme, such as the Green Initiative’s climate labels, will play a key role in helping companies to integrate best practices into their business models while also informing customers of their exemplary environmental performance, contributing to value addition and transparency. A Collective Step Towards Sustainability As society embraces the EmpCo Directive, it stands at the threshold of a transformative journey towards sustainability. It’s a journey that requires the participation of all – businesses, consumers, and policymakers – united by the common goal of ensuring a thriving, sustainable future for generations to come. Together, we can turn the tide towards a more sustainable world, where transparency, accountability, and genuine green practices are the norm, not the exception. For advice and support on how your company can meet its climate and nature goals based on sound technical practices that can deliver new competitive advantages and innovation in products and services, please contact us. Written by Frédéric Perron-Welch, Head of Climate and Nature Policy from the Green Initiative Team.

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