Understanding the Role of the Green Claims Directive (GCD)

In today’s world, where sustainability is increasingly important, consumers are becoming more conscious of the environmental impact of their purchases. As a response to this growing demand for transparent and supposedly eco-friendly products, the European Union introduced the Green Claims Directive, which is a part of the Green Claims Regulation, to protect consumers against false or misleading claims.

In this article, we will delve into the history, current landscape, scope and requirements, and the opportunities presented by the Green Claims Directive. We will also explore how COSH!, as an online platform promoting local, more sustainable fashion retailers, can assist companies in complying with this directive and protect consumers from any misguided decision. With the Directive on empowering consumers for the green transition (EmpCo) and the Green Claims Directive, the EU is taking action against greenwashing and EU-wide standards for the use of environmental claims.

How did the Green Claims directive come about, and why?

According to a 2020 study by the EU Commission, 53.3% of the environmental claims analysed can be classified as vague, misleading or unsubstantiated. The Green Claims Directive was established to prevent misleading environmental claims made by businesses. It was introduced to ensure that consumers have access to accurate and reliable information regarding the environmental impact of products they purchase. By regulating green claims, the directive seeks to promote transparency, trust, and sustainability in the market.

With the increasing importance of sustainability, marketers began using ​‘green’ images, slogans and labels to increase sales. As these claims are not always true, reliable or complete, they confuse consumers. On top of that, it also harms companies that are working hard to improve their sustainability, often investing a lot of time and resources into using more sustainable materials and processes. Consumers are losing their trust in environmental claims because it is hard to know which companies are working more sustainably or if they are just saying it as a marketing campaign.

The Green Claims Regulation aims to harmonise the rules surrounding environmental claims across the European Union and provide a level playing field for businesses. There have already been a number of warnings in the media about the sustainability marketing of various companies. However, these were not issued on the basis of the Green Claims Directive, but on the basis of the Unfair Competition Act (UWG/GE; ACM/NL; WHPC/BE). Although this law does not explicitly address the topic of Green Claims, greenwashing is a special case of misleading behaviour. On this legal basis, certain advertising activities can already be warned as misleading and prohibited by courts, even though the Green Claims Directive itself is not yet in effect.

Exploring the Current Landscape of the Green Claims Directive

Analysing the current status and impact of the Green Claims Directive

Although the Green Claims Directive is still in process and needs to be transposed after final adoption into national law within 2 years by each EU member state, it already has a significant impact on businesses operating. It compels companies to be more transparent in their environmental & product claims, to avoid greenwashing. As a result, consumers are better informed and can make more sustainable choices.

The Green Claims Directive was voted for pre-approval in March 2024, and final approval from the European Council will be in 2025. Transition into national law for each member state will follow within 2 years, by 2027.

Shedding light on the relevance and significance of the Green Claims Regulation today

Nowadays, sustainability is a key concern for most consumers and in this regard, the Green Claims Regulation holds great relevance and significance. It ensures that businesses uphold their environmental responsibilities and provides consumers with the information they need to make informed choices. By complying with the regulation, businesses can build trust and loyalty among their customer base.

Delving into the Scope and Requirements of the Green Claims Directive

Identifying the entities and individuals affected by the Green Claims Directive

The Green Claims Directive applies to all businesses operating within the European Union that make environmental claims about their products or services. This includes fashion retailers and entrepreneurs who promote their products as ​‘sustainable’ or ​‘eco-friendly’. It is essential to understand and comply with the requirements set forth by the directive to avoid any legal repercussions.

Unpacking the essential requirements and obligations stipulated by the Green Claims Regulation

The Green Claims Regulation sets out specific requirements for businesses making environmental claims. These requirements include the need for claims to be clear, accurate, and substantiated. Businesses must have evidence to support their claims and must avoid exaggeration or ambiguity. Additionally, the regulation prohibits businesses from making claims that are irrelevant or misleading to consumers. A reliable back-up for evidence can be supported by a Life-Cycle-Assessment (LCA) or Product-Environmental-Footprint (PEF) for single products. This request is built on trust and transparency in the related supply chain to enable easy access to relevant information.

As a general strategy to foster sustainable consumption, the EmpCo (Empowering Consumers for the Green Transition) which is also a part of the Green Claims Regulation already banned the following claims:

Then how can a company still take about their sustainability?

1. Use correct, clear, specific and complete sustainability claims.

   • Use facts, and make sure these are correct.

   • Use plain language, so consumers can easily understand.

   • Don’t create the impression with claims that legal obligations or standard features are sustainability benefits.

2. Substantiate sustainability claims with facts and keep them up to date.

   • Avoid using absolute/​general claims (for example, avoid using ​‘green’ and ​‘sustainable’).

   • Explain your claims.

   • Prove it.

3. Make fair comparisons with other products or competitors.

   • Make it clear what you are comparing the product to and what part of a product the comparison looks at.

   • Use common standard units (such as percentages) for comparison.

4. Describe future sustainability ambitions in concrete and measurable terms.

   • Make sure the plan is concrete, measurable, achievable and specific.

   • Ensure the plan consists of continuous improvements/​developments to reach your goals.

   • Make sure the plan is accessible to consumers.

   • Make sure you have started implementing the plan or will start implementing the plan soon.

5. .Make sure visual claims and labels are helpful to consumers and not confusing.

   • Visual claims should support your claim and not create a false impression about the features of your product.

   • Independent labels are preferable to corporate labels (e.g. Global Organic Textile Standard – GOTS, EU Ecolabel). When using independent labels, clearly state what the label stands for and what criteria have been met.

(based on the guidelines of the Dutch Consumer & Market Authority, 2023)

Embracing the Opportunities Presented by the Green Claims Directive

Recognising the potential advantages and benefits of complying with the Green Claims Directive

Complying with the Green Claims Directive presents numerous advantages and benefits for fashion retailers and entrepreneurs. Firstly, it allows businesses to differentiate themselves from competitors by demonstrating their commitment to sustainability. By providing transparent and accurate information about the environmental impact of their products, companies can build trust and loyalty among environmentally conscious consumers. Compliance with the directive also helps businesses avoid legal issues and potential damage to their reputation.

Seizing the opportunities for growth and development through adherence to the Green Claims Regulation

By embracing the Green Claims Directive, fashion companies can unlock opportunities for growth and development. Sustainable fashion is a rapidly growing market, and by aligning its claims with the requirements of the directive, organisations can tap into this market and attract a larger customer base. Compliance with the regulation also encourages businesses to adopt more sustainable practices, leading to cost savings and improved efficiency.

Tips for consumers

Authentic Sustainability: What you need to know as a consumer

Picture this: you’re strolling down the aisle of your favourite fashion store, eyeing the array of products labelled as ​“eco-friendly,” ​“green,” or ​“sustainable.” But how do you know if these claims are genuine? Enter the Green Claims Directive – your ally in deciphering the truth behind environmental marketing.

So, what does the Green Claims Directive mean for you as a consumer? For starters, it’s all about transparency. Behind every green claim plastered on a product label or shouted in a TV commercial lies hard evidence. Companies are now required to back up their environmental assertions with solid proof, giving you peace of mind knowing that what you’re buying is the real deal.

And if a company does stray from the path of truthfulness, rest assured that there are consequences. National authorities are now empowered to crack down on businesses that engage in deceptive green marketing practices, protecting you and your fellow consumers from falling victim to greenwashing schemes.

But here’s the thing: the Green Claims Directive can only do so much without your active participation. As a savvy consumer, you have the power to demand honesty and integrity from the brands you support. By staying informed, asking questions, and holding companies accountable, you can drive positive change and shape a marketplace that values sustainability as much as you do.

So, the next time you’re faced with a shelf full of ​“green” products, remember the Green Claims Directive – your guide to making informed and environmentally conscious choices. Together, we can create a brighter, better future for generations to come.
 

Leveraging COSH!‘s Expertise to Ensure Compliance with the Green Claims Directive

How COSH! can assist fashion retailers and entrepreneurs in meeting the requirements of the Green Claims Directive

COSH! is an online platform that promotes local fashion retailers with a desire to have a more positive impact in Belgium, The Netherlands, Germany, and Spain. As part of our services, we offer support and guidance to entrepreneurs in our network to ensure compliance with the Green Claims Directive. COSH! provides resources and expertise to help accurately communicate the environmental impact of their products. By partnering with COSH!, fashion retailers and entrepreneurs can gain access to the knowledge and tools they need to meet the requirements of the directive.

Maximising the support and guidance provided by COSH! to align with the Green Claims Regulation

COSH! goes beyond simply helping fashion retailers and entrepreneurs comply with the Green Claims Directive. We strive to make the information interesting and unique, avoiding repetitive content found on other platforms. By leveraging COSH!‘s expertise, businesses can not only fulfil the requirements of the directive but also stand out in the market by providing engaging and informative content to their customers. COSH! offers a comprehensive solution for fashion retailers and entrepreneurs looking to navigate the complex landscape of sustainability and green marketing claims.

Conclusion

The Green Claims Directive, as a part of the Green Claims Regulation, plays a crucial role in promoting transparency and sustainability in the market. It sets out clear requirements and obligations for businesses making environmental claims and provides opportunities for growth and development, building trust with transparency. By partnering with COSH!, fashion retailers and entrepreneurs can ensure compliance with the directive and leverage their expertise to stand out in the market. Together, we can build a more sustainable future for the fashion industry.