EU Parliament Fights Greenwashing: Banning Green Claims Citing Only Carbon Offsetting

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In recent years, with the rise of Sustainability and ESG across policies and media across the globe, there has been a surge in companies making green claims. However, these claims are not always what they seem to be raising concerns around greenwashing and misleading practices. To address this issue, the European Parliament is passing more policies to fight against greenwashing and promote genuine sustainability and ESG efforts and claims. This month, The European Parliament proposed to ban green claims that rely solely on carbon offsetting, without concrete emissions reduction efforts. This proposal also foresees banning the use of general claims such as labeling products as environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco”. This proactive measure aims to combat deceptive marketing tactics and ensure transparency in environmental claims.

The key takeaways from this proposal are as follows:

• Substantiating Environmental Claims: The regulations aim to establish clear criteria to substantiate environmental claims made by products and services, ensuring their alignment with sustainable practices.

• Consumer Empowerment: By providing consumers with reliable information, the regulations enable them to make informed choices, supporting companies genuinely committed to sustainability.

• Industry Accountability: The rules enhance industry accountability, encouraging businesses to adopt and promote sustainable practices throughout their value chains.

Photo by Photo Boards on Unsplash

What we see here, is The European Parliament demanding some accountability for the things said in regard to green practices in hopes that this will ensure that companies are truly being green, not just claiming that they are. This happening both in marketing language as mentioned above, but Parliament also wants to ban the introduction of design features that limits a product’s life or that will lead to goods malfunctioning prematurely. Not only will companies be accountable for the statements made, but also the longevity and quality of the goods sold. According to The European Parliament (2023), After the vote, rapporteur Biljana Borzan (S&D, HR) said:

“The industry will no longer profit from making consumer goods that break just as the guarantee period is over. Consumers will have to be provided with information about the options and cost of repairs in a clear manner. Product labels will inform citizens which goods are guaranteed to last longer and producers whose goods are more durable will profit. The jungle of false environmental claims will end as only certified and substantiated ecological claims will be permitted.”

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Sources:

ESG Today. "EU Parliament Proposes Ban on Green Claims Based Solely on Carbon Offset." https://www.esgtoday.com/eu-parliament-proposes-ban-on-green-claims-based-solely-on-carbon-offsetting/

European Parliament. "Parliament Backs New Rules for Sustainable, Durable Products, and No Greenwashing." https://www.europarl.europa.eu/news/en/press-room/20230505IPR85011/parliament-backs-new-rules-for-sustainable-durable-products-and-no-greenwashing

POLITICO. "Airports: European Parliament Takes Aim at Guilt-Free Flights' Sustainability." https://www.politico.eu/article/airports-european-parliament-takes-aim-at-guilt-free-flights-sustainability/