Green Claims Directive: Create value for your business
What is the Green Claims Directive?
Sustainability data is confusing - depending on the assumptions made and boundaries drawn, different assessments can lead to very different conclusions. Check out our primer on LCA to understand just how many variations are possible. If everyone is playing by different rules, it’s too confusing for consumers to make sustainable choices, and too easy for well-intentioned businesses to be accused of greenwashing.
The proposed Green Claims Directive aims to eliminate the confusion with a series of detailed delegated acts, which are expected to mandate complex LCA-based Product Environmental Footprint Category Rules (PEFCRs) for any sustainability claims. PEFCRs are still being developed for many industries, and given the overall shift to reduce admin burden, the anti-greenwashing regulation has been applied in the short term. However in the long term, these detailed rules could still be implemented, and provide legal and reputational assurance for companies.
Who does the Green Claims Directive apply to?
The Green Claims Directive would apply to any business making sustainability claims about their products sold within the EU - especially comparative claims. Even if your business makes no specific marketing claims, you may be required to provide extensive data to customers who do (e.g. in an LCA).
How does the Green Claims Directive impact small & medium sized businesses?
This directive is proposed, and has not been adopted or enforced. Right now, the directive has no impact on SMEs (however, the closely related anti-greenwashing directive does). In the future, it could require any sustainability claims to be substantiated by Life Cycle Assessments (LCA) which follow detailed rules outlined in Product Environmental Footprint Category Rules (PEFCRs).
These LCA requirements can impact SMEs in different ways:
Do you differentiate your product on sustainability? Then you would need to justify your sustainability claims with a PEFCR-compliant LCA.
Do you sell products to a customer (either direct or via intermediaries) who makes sustainability claims? Then you may need to provide detailed information to your customers, who will use your information in their own LCA.
Although the Green Claims Directive is not yet in force, many companies are beginning to use PEFCRs to justify their sustainability claims. This helps protect their business from legal disputes and reputational damage from greenwashing. Differentiating your products with clear data and sustainability - even as part of a supply chain - can help you attract large customers before its required by law.
Ready for the next step?
Ready to create value for your business? Contact us for a consultation on how the Green Claims Directive and the other new laws of the EU Green Deal impact your business and discover opportunities for growth and sustainability.
