European Parliament Passes Anti-Greenwashing Bill

Overview: 

The European Parliament passed an anti-greenwashing law (593-21) to combat deceptive environmental claims. Pending EU Council approval, the law focuses on clearer product labels, restricting generic environmental claims, and promoting sustainability. Member states have a two-year integration period. The EU Commission also proposed a "Directive on Green Claims" for additional consumer protection.

Summary:

Recentley, the European Parliament overwhelmingly voted (593-21) to adopt a new anti-greenwashing law. This signals a significant step in addressing deceptive environmental claims by companies. This legislation was a response to the EU Commission's March 2022 proposals, aims to combat vague or misleading assertions by prohibiting unproven generic product claims like "environmentally friendly" or "climate neutral." It also targets marketing practices that imply a reduced environmental impact through emissions offsetting schemes. The key elements of the law include clearer product labels, restricting generic environmental claims without proof, and regulating sustainability labels to only allow those based on official certification schemes or established by public authorities.

In addition to addressing greenwashing, the new law focuses on product durability and consumer transparency. It mandates more visible guarantee information on products and the creation of a harmonized label emphasizing goods with extended guarantee periods. The law aims to counter unfounded claims about product durability, discouraging premature replacement of consumables and false representations of goods as repairable when they are not. The legislation's passage signifies a shift towards promoting more durable, repairable, and sustainable products, offering consumers reliable information through labels and advertisements.

While the European Parliament has taken a significant step, the new legislation must now undergo approval by the EU Council. The Council, having reached a provisional agreement with Parliament in September, will determine the final approval. Once published in the EU's Official Journal, member states will have a two-year period to integrate the rules into their national laws. In tandem with this law, the EU Commission has proposed a "Directive on Green Claims" to further safeguard consumers from greenwashing, establishing rules that require companies to substantiate and verify their environmental claims and labels.

Source: https://www.esgtoday.com/eu-parliament-approves-law-banning-misleading-product-sustainability-claims/