Green Claims Directive: What It Means for Brands and Consumers

Introduction

In today’s environmentally conscious world, sustainability sells. Brands are eager to highlight their eco-credentials, but this enthusiasm has given rise to a dangerous trend—greenwashing. Many businesses make environmental claims about their products or services that are vague, misleading, or downright false, leaving consumers confused and sceptical. Enter the Green Claims Directive (GCD), the EU’s bold step to combat greenwashing and foster trust in environmental claims.

As a leader in product packaging data management solutions, 4Pack is here to unpack the Green Claims Directive, explain its implications for brands and consumers, and guide you in aligning with this important regulatory framework.

What Is the Green Claims Directive?

The Green Claims Directive (GCD) is a proposal introduced by the European Commission in March 2023 as part of its broader European Green Deal. The directive aims to:

• Make environmental claims reliable, comparable, and verifiable.
• Protect consumers from misleading claims.
• Promote a circular and green economy by empowering informed consumer choices.
• Level the playing field for businesses genuinely striving for sustainability.

The GCD addresses explicit voluntary green claims—statements about the environmental performance or benefits of a product or company that aren’t covered by other EU rules. Examples include:

• “Packaging made of 30% recycled plastic.”
• “CO₂ emissions reduced by 50% compared to 2020 levels.”
• “Company’s environmental footprint reduced by 20% since 2015.”

Why Is the GCD Necessary?

A European Commission study revealed alarming insights into the state of green claims across the EU:

These findings highlight the pervasive problem of greenwashing. With 230 sustainability labels and 100 green energy labels in use across the EU—varying widely in transparency and credibility—consumers are left bewildered, unable to trust the labels they encounter.

Key Measures Under the Green Claims Directive

The GCD proposes robust measures to restore consumer trust and hold businesses accountable:

• Clear Evidence Requirements: Companies must substantiate their environmental claims using reliable, scientific, and verifiable methods, such as lifecycle analysis.
• Independent Verification: All claims must be verified by accredited third-party assessors.
• Governance of Environmental Labels: Stricter rules for creating and managing sustainability labels to ensure transparency and reliability.
• Restrictions on Carbon Credit Usage: Detailed disclosures required for claims involving carbon credits, ensuring these credits meet rigorous standards under the EU’s Carbon Removal Certification Framework (CRCF).

How Will the GCD Impact Brands?

The GCD presents both challenges and opportunities for brands. Here’s how it will influence business practices:

Challenges

1. Increased Accountability: Businesses must provide robust evidence to substantiate claims, which may require investment in new methodologies or third-party audits.
2. Compliance Costs: Ensuring compliance with the GCD may involve additional resources, particularly for smaller businesses.
3. Stricter Oversight: Misleading claims could lead to penalties, reputational damage, or forced withdrawal of products from the market.

Opportunities

1. Consumer Trust: Transparent, verifiable claims can build long-term customer loyalty.
2. Market Differentiation: Genuine sustainability efforts will stand out in a crowded marketplace.
3. Alignment with Global Goals: Adopting GCD standards will help brands align with global climate and sustainability initiatives.

How Can Brands Prepare?

Here are practical steps brands can take to comply with the Green Claims Directive:

Audit Your Claims:

• Review all marketing materials, product labels, and sustainability reports.
• Remove vague or unsubstantiated claims.

Substantiate with Science:

• Conduct lifecycle analyses of your products.
• Gather third-party certifications or data to back up claims.

Engage Third-Party Verifiers:

• Partner with accredited organisations to validate your claims.

Communicate Transparently:

• Use clear, unambiguous language.
• Avoid exaggerations or omissions.

Train Your Team:

• Educate your marketing, product development, and compliance teams on GCD requirements.

Implications for Consumers

For consumers, the GCD represents a major step forward. Reliable green claims will:

• Empower Better Choices: Consumers can confidently select products aligned with their values.
• Enhance Transparency: Labels will be more meaningful and easier to understand.
• Discourage Greenwashing: Dishonest brands will face greater scrutiny and penalties.

A Broader Sustainability Movement

The Green Claims Directive is part of a suite of EU policies advancing environmental accountability:

4Pack’s Commitment to Sustainability

At 4Pack, we understand the critical role packaging plays in sustainability. The Green Claims Directive is an opportunity for us to lead by example, helping brands adopt eco-friendly practices and communicate them transparently.

Whether you need advice on sustainable packaging solutions, lifecycle analysis, or compliance with green claims, we’re here to support your journey.

Let’s build a greener future together. Get in touch with us today to ensure your packaging meets the highest environmental standards—and stays compliant with the latest regulations.

In Summary

The Green Claims Directive is a game-changer for brands and consumers alike. By making environmental claims more reliable and transparent, the directive paves the way for a fairer, greener marketplace. For brands willing to embrace this change, the rewards are significant—greater consumer trust, market differentiation, and alignment with global sustainability goals.
It’s time to move beyond greenwashing and take genuine strides towards sustainability. At 4Pack, we’re ready to help you make it happen.