19/2/2024

The 5 major changes of the new European Green Claims Directive on the communication of any organization

The European Union is about to vote on a new directive that will revolutionize the world of communication in terms of environmental claims. We explain everything to you.

The observation is simple: citizens have no confidence in brands when they communicate about their ecological commitments. That's logical in itself because you can see anything and everything. Greenwashing but also a proliferation of expressions (natural, organic, carbon neutral products, etc.) and labels.

This is why the EU wants to regulate all environmental claims (Green Claims in English) so that we can find our way around them.

Before we get started, let's briefly define what an environmental claim is. It is any message in any form (text, image, label...) in the context of commercial communication that affirms that a product/service organization has a positive (or zero) impact on the environment or is better than competitors in terms of ecology.

Note that at the time of writing this text (beginning of December 2023), the directive has not yet been voted on in the European Parliament. It went through the Commission which sent it to Parliament. Normally, at this point, the directive should pass. But most likely there should still be amendments. So this article is an analysis of the text today, but changes could still take place. So keep an eye on that.

Now that we are on the same page, let's get to the heart of the matter with the 5 major changes that this directive will bring.

1. Generic Environmental Claims Will Be Banned

A huge change is coming. Any vague expression such as eco-responsible, sustainable, sustainable, good for the planet, climate neutral, etc. will be purely and simply forbidden. They will no longer be able to be used during external communication.

This is a good thing because these terms are too strong and disproportionate. It is a typical case of greenwashing, the disproportionate promise. Because there is a disproportion between the claim and the real ecological quality of the product or service. And that risks deceiving the consumer.

So no more sustainable airplanes, climate-neutral Iphones or household products that are good for the planet. Committed brands will also be impacted. Because they use such terms on a regular basis. Even if it is often based on a real improvement in environmental qualities, it is still too strong an allegation and should be avoided.

So give preference to environmental claims. Explicit. That is, a claim that specifies how the product or service is more “sustainable.” For example, “70% less plastic” or “made from 100% recycled materials.” With expressions like these, you can directly understand the positive impact.

2. Any explicit environmental claim will have to be verified by a third party organization

This is THE big change that will revolutionize the sector. A major problem with advertising is that there is no prior verification. There is only a check if a complaint is filed (so later). So the damage has already been done because the commercial has already been broadcast.

With this directive, a certificate of conformity issued by an approved third party body will be required (point still to be defined in the directive). In other words, to say that you are using x% recycled materials, someone outside will have to check if this is indeed the case. With real evidence to back it up. Depending on the claim, real scientific evidence should be available. It should also be mentioned whether the claim is related to the whole product or to a part of the product. Of course, you will only be able to communicate on an allegation if it infringes the law.

Note that this rule will not apply to small businesses (less than 10 employees or under 2M in turnover). For SMEs above this criterion, financial aid should be put in place, but this is still a point under discussion.

3. More carbon neutrality and an obligation to be precise about compensation

This is a corollary of point 1: we will no longer be able to say that a product, service or organization is carbon neutral or climate neutral. It is indeed a generic environmental claim. Especially since here, it deceives the consumer by conveying the message that a product has no environmental impact. But yes, an accounting balance has just been reached through compensation.

In addition to this ban, it will be mandatory to be precise about compensation: what type of compensation, what scopes were used to carry out the carbon footprint, what period was considered, where did the compensation take place, etc.

Note that this point is still under discussion and still needs to be confirmed as part of this guideline. Because another directive on this subject, Empowering Consumer, deals with the subject. We will therefore have to see what will happen in practice at the time of the final vote, after amendments.

4. Obligation to link to a web page or document when making an environmental claim

This in itself is already something that is recommended by advertising ethics boards and the rules set by the sector. But this will henceforth be governed by a European directive. It will therefore always be necessary to redirect via a redirection link or a QR code to a web page where citizens can find more information. This is key so that we can all get information and have access to information.

5. Heavy Penalties for Non-Compliance

Today, unless you carry out a serious misleading commercial communication, you have no penalties in the end. The sector is self-regulated and issues negative ratings in case of complaints accepted, which just have a symbolic effect and a potential bad buzz.

With this directive, sanctions will be put in place, with hefty fines, a potential confiscation of income or even a ban on public contracts and funding.

We will therefore have to be well prepared for this new directive, which will bring its share of changes in the communication and advertising sector. But this directive remains excellent news in order to fight against greenwashing and therefore to facilitate a real ecological transition.

To conclude, it should be added that the scope of the directive is still quite vague; there are still several weaknesses in the text. We will therefore follow closely the amendments made to the text.

If you are interested, we did a webinar on the subject with Ecos and the Longtime label. You Can Find It HERE.

Also note that this guideline is based on responsible communication codes. So if you are already doing things well at this level, you will have no worries. But it is not easy to achieve because it depends on nuance.

This is why we have launched a service to support responsible and non-greenwashing communication at GiveActions. Contact us if you are interested.

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