Navigating the Green Claims Directive
What the Green Claims Directive is aspiring to do
The Green Claims Initiative aims to prevent greenwashing by ensuring that environmental claims made by companies about their products and services are reliable, comparable, and verifiable across the EU.
What disclosures are required
Companies will be required to substantiate any voluntary green claims they make in business-to-consumer commercial practices. Environmental claims will only be permitted if they meet minimum criteria and are independently verified by a third party.
The directive mandates greater transparency, ensuring that environmental claims are backed by verifiable data, preventing misleading or exaggerated statements. Claims will require a rigorous verification process including Life Cycle Assessments (LCAs) and third-party certifications.
There will be periodic reviews of environmental claims to ensure ongoing compliance.
Who it applies to
The Green Claims Directive applies to all companies operating within the EU that make environmental claims about products or services
Key dates to be aware of
March 2024: The European Parliament voted in favor of the Green Claims Directive.
Early - mid 2025: Finalized text is anticipated. The European Parliament and Council of the European Union are still negotiating an agreement.
If an agreement is met, EU member states must implement the directive into national law within 24 months and apply measures within 26 months.
What companies need to prepare
Keep up to date with rollout of the regulation
Assess current environmental claims and conduct product LCAs
Prepare for third-party verification of environmental claims
Our recommendation
Although an agreement remains to be reached, we recommend companies begin preparing now. Review your current environmental claims to ensure they are accurate and begin the process of conducting LCAs for your products while identifying third-party certification partners. This will help prepare your company for compliance and enhance your trust and leadership in sustainability.
Where Bespoke ESG can support
At Bespoke ESG, we specialize in guiding companies through the complexities of evolving regulations like the Green Claims Directive. Here's how we can support your compliance efforts:
Green Claims Audits: We help you assess your current environmental claims, identifying gaps and areas for improvement to ensure compliance with the directive.
Verification Preparation: We assist with gathering the data and documentation necessary for third-party verification, including Life Cycle Assessments and sustainability certifications.
Regulatory Updates: We keep you informed of key updates as the Green Claims Directive is finalized, helping you stay ahead of compliance deadlines.
Beyond Compliance: We work with you to leverage sustainability as a strategic advantage, going beyond regulatory requirements to create business value and strengthen your brand’s reputation.
Bespoke ESG ensures that your company not only complies with the Green Claims Directive but also positions itself as a leader in transparent sustainability practices.
Disclaimer: The information provided in this document is for general informational purposes only and does not constitute legal advice. Regulatory advice is provided solely within the scope of contracts between Bespoke ESG and its clients.