Did you know that, according to a 2019 survey by the European Commission, 68% of consumers in the EU said that environmental claims on products are important when making purchasing decisions? Unfortunately, the same survey also found that 42% of consumers were not confident in the accuracy of environmental claims made by companies. 

While some governments have failed to acknowledge this significant level of skepticism, others have made changes in the legislation to protect customers’ interests,  including the European Union. In fact, just last month the EU Commission updated the ‘Union Consumer Law’. Changes in this legislation arose from the commitment the Commission has to ensure customers are protected and empowered to contribute actively to the green transition.

What is the ‘Union Consumer Law’?

The ‘Union Consumer Law’ aims to protect the rights and interests of consumers in the EU. The goal is to ensure that consumers have confidence in the products and services they purchase and that they are not subject to false or misleading claims, including greenwashing. This being said, this law states that companies must have reliable and scientific evidence to back up the environmental claims they make.  

However, in 2020, the Commission carried out a study analysing several environmental claims in a wide range of products. They discovered that a considerable share of environmental claims (53.3%) provide vague, misleading, or unfounded information about products’ environmental characteristics. Moreover, they also looked at the substantiation of such claims. According to the analysis, 40% of the claims were not supported by evidence. In more than half of the cases (57.5%), authorities determined that the trader failed to provide enough information to assess the accuracy of the claim. 

The Commission felt, then, the need to provide more specific rules in order to increase consumer trust in environmental claims, which is currently extremely low. 

What does this mean for companies? 

The new proposals on the Green Claims Directive are introducing stricter rules for environmental claims by companies in the EU. Specifically, the proposals will: 

1. Set out specific criteria that companies must meet to make environmental claims about their products, services, or even packaging. 

2. Establish a list of commonly used environmental claims that companies can use, along with guidance on how to use them correctly and in a way that is not misleading. 

3. Introduce requirements for companies to provide more detailed information to consumers about the environmental impact of their products or services. 

In order to ensure the accuracy of their environmental claims, companies will now be required to verify them. Fortunately, third-party assessments can help to make this process easier. MetrikFlow can support your company in this activity, which offers a Life Cycle Assessment (LCA) for fashion and retail businesses. By leveraging this service, companies can receive the support they need to verify their claims and demonstrate their commitment to sustainability.

Who is affected by these changes? 

These new proposals are aimed at any company that wants to make environmental claims about their products or services across the EU. However, it is important to denote that Microenterprises ( <10 employees and with an annual turnover< EUR 2.60 million) are exempted from the requirements unless they wish to receive a certificate of conformity of the environmental claim.

How does this affect the consumers?

These new changes are having a positive impact on consumers by increasing transparency and reducing the prevalence of false or misleading environmental claims made by companies. Previously, consumers were often bombarded with vague or unsubstantiated claims about a product's environmental impact, which made it difficult for us to make informed decisions about our purchases. Furthermore, the directive is helping to drive greater awareness and interest in sustainability among consumers. The directive is helping to raise awareness about the importance of sustainability and encouraging more consumers to prioritise environmentally friendly products. These changes are shaking up industries and will finally help keep a check on false environmental advertising. Get ready to shop with a clear conscience.