EU cracks down on greenwashing. Â
from Studio Legale Corte.
 On 6 March 2024, EU Directive 2024/825 was published with regard to empowering consumers for the green transition by improving protection against unfair practices and information.
The directive sets out a series of prohibitions and generic transparency obligations regarding environmental and sustainability claims. It will lead to the inclusion of new specific rules in the Consumer Code regarding environmental and sustainability claims, thus making it easier for the authorities to identify and challenge misleading practices, and putting a stop to greenwashing.
Below is a brief guide to the main changes that will be introduced by the directive.
Summary
The main changes are as follows.
1. Sustainability labels and certifications (i.e. a trust mark covering environmental aspects, social aspects, or both)
To display a sustainability label, it will be necessary to use a label established by public authorities (e.g. in Italy, the “Made Green in Italy†label), or to rely on a certification system based on a standard, open to all operators, with transparent, fair and non-discriminatory conditions, which is the result of a consultation with relevant experts and stakeholders. Â
Verification of compliance with this standard must be carried out by a third party with respect to both the holder of the standard and the operator who will claim the certification.
2. Zero impact and climate neutrality
The Directive places a complete ban on claims of a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions, including CO2, on the basis of offsetting. The ban will not prevent companies from advertising their investments in environmental initiatives, including carbon credit projects, as long as companies provide such information in a non-misleading manner, and in compliance with the requirements set out in EU law.
3. Future environmental performance statements
They must necessarily be based on a detailed and verifiable plan, which includes clear and objective commitments (including the allocation of necessary resources), and which is publicly available and verifiable. The objectives must be measurable and with precise deadlines, which must be periodically verified by an independent third party. The verifier’s conclusions must be made available to consumers.
4. Generic green claims (e.g. expressions such as “greenâ€, “eco-friendlyâ€, “environmentally friendly†“friendly of the environmentâ€)
Generic claims, i.e. those that are not included in a sustainability label, and whose specification is not provided in clear and evident terms through the same medium or communication, will be prohibited unless the recognised excellence of the relevant environmental performance can be demonstrated. This will therefore only be possible if the environmental performance complies with the Ecolabel Regulation, with a national or regional type I eco-label award scheme in accordance with EN ISO 14024, officially recognised in the Member States, or with the best environmental performance under other Community provisions. Generic expressions such as “conscious”, “sustainable” or “responsible” should also be avoided, if based only on excellent environmental performance, since such claims imply other characteristics, in addition to environmental ones, such as social characteristics.
5. Sanctions for violations of Directive 2024/825
The sanctions will be those imposed by the AGCM for deceptive commercial practices, (€5000-€10,000,000)
6. Terms for complianceÂ
The deadline for the applicability of Directive 2024/825 is September 27, 2026, but some of the practices regulated by EU Directive 2024/825 are already considered misleading based on the interpretation of the general rules contained in the consumer code. The sanctions are already those applied by the AGCM.
