Under the Empowering Consumers for the Green Transition Directive, also known as EmpCo, all sustainability claims must be supported by third-party evidence, such as a certification or government-backed label. These rules took effect on September 27.
Broadly speaking, ‘greenwashing’ is the practice of using deceptive marketing or misleading claims to persuade the public that a company, product, or investment is more environmentally friendly or sustainable than it actually is.
These laws affect unsubstantiated claims commonly used in retail products, including jewellery, such as ‘sustainable’, ‘green’, and ‘planet-friendly’. Certain claims, such as ‘carbon offsetting’ or ‘carbon neutrality’, are blacklisted.
Businesses operating within the European Union have had several years to prepare for these regulations, which were submitted in March 2024. That said, ‘greenwashing’ has been a European Union focus for several years, highlighted by a 2020 study that found more than 53 per cent of environmental claims about products sold in the EU were unfounded.
“Until now, investigations have been conducted at the discretion of individual EU member states. While enforcement of the new rules will be controlled at a national level, EmpCo provides a unified framework on what can and cannot be claimed,” a Vogue report explains.
“Any brand selling into the EU, whether European or not, must comply.”
“Unlike many incoming regulations, which often have phased rollouts for different-sized businesses, EmpCo will apply to all brands and products on the market from the end of September. That means the same rules apply if you’re a billion-dollar retailer with well-resourced legal and sustainability teams, or a small independent fashion brand.”
These regulations also address ‘partial claims’, and companies cannot market a product as ‘environmentally friendly’ if the benefit only applies to one part of the product. A report earlier this year found that greenwashing may be a billion-dollar issue in Australia.
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