Following the recent development SMARTOUR partners considering in the project Course Materials relevant and recent EU Legislation. For example, in Sustainability module we are now considering also Substantiation and communication of explicit environmental claims (Green Claims Directive), which is also relevant for tourism market.
EU Bans Greenwashing
European Parliament has given its final green light to a Directive that will improve product labelling and ban the use of misleading environmental claims. The Directive was adopted with 593 votes in favor, 21against and 14 abstentions seeks to protect consumers from greenwashing and help them make better purchasing choices.
What Is Greenwashing
The European Union is proposing to reinforce regulatory measures against false or misleading environmental claims, commonly known as “greenwashing.” To stop the growing trend of companies promoting their products, services and business as more environmentally friendly than is factually true and to help create a competitive and sustainable market, regulators are proposing a ban on false environmental claims. Businesses wanting to publish explicit environmental claims will be required to conduct extensive assessments and provide supporting documentation.
Natural, eco, environmentally friendly… Many products have these labels, but very often those claims are not proven. The EU wants to make sure that all information on a product’s impact on the environment, longevity, reparability, composition, production and usage is backed up by verifiable sources.
The Green Claims Directive
The aim of the Green Claims Directive (GCD or Directive) is to prevent false or misleading advertising from hindering the green transition. Under the GCD, only companies that have verified their claims as environmentally friendly can reap commercial benefits from using green claims. The GCD and other related greenwashing regulations could well pave the way for an increasing number of greenwashing litigation cases around the world.
To achieve that, the EU will ban: generic environmental claims on products without proof claims that a product has a neutral, reduced or positive impact on the environment because the producer is offsetting emissions sustainability labels that are not based on approved certification schemes or established by public authorities.
The GCD applies to explicit environmental claims that companies make about their products or the company itself in business-to-consumer commercial practices. The Directive provides conditions for how such claims are to be substantiated. In addition, how they have to be communicated and detailed requirements for the approval of environmental labels, third-party verification of claims, and penalties for companies found to be noncompliant.
How GCD works?
Under the proposed GCD rules, businesses will be required to substantiate explicit environmental claims before publishing, providing consumers with transparent, reliable, and valuable information. The Directive outlines specific requirements for substantiating explicit environmental claims. For example, by requiring lifecycle considerations, disclosing scientific evidence and explaining any deviation from law or industry and sector standards.
Information must be disclosed together with the product, through use of a URL or QR code. In general, the disclosure information is expected to cover: Environmental aspects, impact and performance included in the claim, relevant EU or international standards used as part of the substantiation, how improvements related to the claim are achieved, information on greenhouse gas (GHG) off-setting, Underlying studies or calculations used to assess, measure and monitor impacts, aspects or performance, certificate of conformity, in case of comparative advertising, appropriate comparative data.
Effects of the stopping greenwashing
Parliament’s rapporteur Biljana Borzan (S&D, HR) said: “This law will change the everyday lives of all Europeans! We will step away from throwaway culture, make marketing more transparent and fight premature obsolescence of goods. People will be able to choose products that are more durable, repairable and sustainable thanks to reliable labels and advertisements. Most importantly, companies can no longer trick people by saying that plastic bottles are good because the company planted trees somewhere – or say that something is sustainable without explaining how. This is a big win for all of us!”
With this Directive EU aims to put an end to greenwashing, the practice of giving a false impression of the environmental impact or benefits of a product, which can mislead consumers, and provide more information to consumers on the durability of products they buy.
Effects on tourism sector
Tourism sector already taking into consideration Green Claims Directive. For example, HOTREC – European umbrella association of hotels, restaurants, cafés and similar establishments in 2023 published its Position paper regarding Directive.
HOTREC proposes, that companies in the sector are willing to develop a sustainable marketing strategy that is compliant with EU legislation, avoids greenwashing or misleads consumers when accessing information.
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This blog post was prepared by Lika Kvizhashvili and Iryna Shchoka from European Wilderness Society, based on various competent recourses, mentioned in the post.