Food businesses are unknowingly falling into greenwashing accusations.

Up until now, green claims have been regulated under general marketing laws to prevent misleading claims. However, the lack of a consistent approach on how these claims are substantiated and communicated to consumers has been a major challenge. The implementation of the Greenwashing and Green Claims Directives is set to change this.

These two directives, the Green Claims Directive (GCD) and the Greenwashing Directive (GWD), send a simple message – businesses need to act now. The GWD updates existing directives to ban generic environmental claims such as “environmentally friendly” unless they comply with sector-specific rules or recognized ecolabelling schemes. On the other hand, the GCD focuses on explicit environmental claims in text or logo format, as well as comparative claims.

Businesses will also be required to have all explicit claims verified by a third-party accredited by a Member State. Certification schemes such as B-Corp or Rainforest Alliance will need to be assessed before their logos are allowed on products. The GCD will not come into effect until 2025, giving businesses time to prepare, while the GWD will be in force in early 2024.

The European Commission’s research found that over 50% of environmental claims were vague, misleading, or unfounded. Non-compliance with the new directives could result in penalties of up to 4% of total annual turnover or other punitive actions. The UK will not be subject to these changes but will continue to regulate green claims through their own legislation.

Businesses making environmental claims need to be prepared for the upcoming changes, including understanding accreditation requirements for third-party verifiers, regulation of implicit claims, and potential conflicts between different verification schemes. It is crucial for businesses to act now, gather guidance from relevant authorities, and assess their green claims for compliance. Seeking expert advice where needed will be essential, especially for businesses heavily reliant on green claims for their brand.