Greenwashing is a practice that involves giving a misleadingly positive environmental image of a company, product, or service. This manipulative strategy exploits consumers’ growing sensitivity to environmental sustainability, leading them to believe that products are more eco-friendly than they actually are. This phenomenon not only undermines consumer trust but also distorts the market, penalizing genuinely sustainable companies.
Examples and Consequences
A typical example of greenwashing is the use of vague labels such as “eco-friendly,” “natural,” or “biodegradable” without providing concrete evidence. These claims can confuse consumers, leading them to make uninformed choices. Other tactics include presenting fake environmental certifications or promoting minor ecological initiatives to distract from more significant environmental impacts.
The consequences of greenwashing are serious. It can erode consumer trust, damage company reputations, and slow progress toward environmental sustainability. When companies practicing greenwashing are exposed, they may face consumer boycotts, legal action, and sanctions from regulatory authorities.
EU Directive 2024/825
To combat greenwashing, the European Union introduced Directive 2024/825. This directive aims to strengthen consumer protection against misleading marketing practices and to promote greater transparency in companies’ environmental communications.
According to Directive 2024/825, several practices are identified as greenwashing and are prohibited:
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False Sustainability Labels: It is prohibited to display a sustainability label that is not based on an approved certification system or established by public authorities.
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Generic Environmental Claims: Making generic environmental claims without being able to demonstrate the actual excellence of the relevant environmental performance is not allowed.
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Carbon Offsetting Claims: Claiming that a product is carbon-neutral or has a reduced environmental impact in terms of greenhouse gas emissions based solely on offsets, without real emission reductions, is prohibited.
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Legal Requirements Presented as Distinctive: Presenting legal obligations as if they were a distinguishing feature of the company’s offering is forbidden.
Labeling Standards
The directive also amends product labeling standards, prohibiting the use of generic environmental terms such as “environmentally friendly,” “green,” or “biodegradable” if not supported by concrete evidence. Only sustainability labels based on approved certification systems or created by public authorities will be allowed.
Impact of the Directive
The implementation of Directive 2024/825 will have a significant market impact. Companies will need to adjust their communication strategies and ensure that all environmental claims are supported by verifiable data. This will increase transparency and consumer trust, fostering a fairer and more sustainable market.
Timeline
The directive will enter into force twenty days after its publication in the Official Journal of the EU, with Member States required to transpose it by March 27, 2026, and ensure full operational compliance by September 27, 2026 (Lexplain, Almater srl).
In conclusion, the fight against greenwashing is essential to promote genuine sustainability. EU Directive 2024/825 represents a crucial step toward protecting consumers and promoting transparent and responsible business practices.
