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EU Launches Green Claims Rules to Protect Consumers from Greenwashing

ESG Today • Mar 22, 2023

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The European Commission on Wednesday unveiled the proposed “Directive on Green Claims,” a new set of rules requiring companies to substantiate and verify their environmental claims and labels, aimed at protecting consumers from greenwashing.


In a statement announcing the launch of the new proposed rules, the Commission said:


“Under today’s proposal, consumers will have more clarity, stronger reassurance that when something is sold as green, it actually is green, and better quality information to choose environment-friendly products and services.”


According to the Commission, the new rules address a need for reliable and verifiable information for consumers, in light of a recent study by the Commission finding that more than half of green claims by companies in the EU were vague or misleading, and 40% were completely unsubstantiated.


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