Green Claims and Greenwashing

Greenwashing occurs when an organisation makes misleading, exaggerated, or unsubstantiated environmental or sustainability claims about its products, services, or operations. In the EU, the Greenwashing Directive (EU) 2024/825 (Empowering Consumers for the Green Transition Directive, applicable from March 2026) prohibits unsubstantiated sustainability claims, unverified environmental labels, and misleading claims about future sustainability performance. The Green Claims Directive (COM(2023) 166, under negotiation) will additionally require pre-substantiation of environmental claims before market use.

EU Greenwashing Directive (Empowering Consumers for the Green Transition Directive) (EU) 2024/825, applicable March 2026; Green Claims Directive proposal COM(2023) 166; FTC Green Guides (US, under revision).

Manufacturers and brands making carbon neutral, climate positive, sustainable, recycled, or eco-friendly claims face growing regulatory scrutiny. From March 2026, EU regulations prohibit claims such as ‘carbon neutral’ without verified methodology. Companies must substantiate all environmental claims with verifiable data, recognised standards (e.g., ISO 14067 for carbon footprint, ISO 14068-1 for carbon neutrality), and third-party verification. Vague or unsubstantiated claims create legal, regulatory, and reputational risk.