Companies Must Prepare “Scientific Basis” for Sustainability Claims as MEPs Ban Greenwashing

Members of the European Parliament (MEPs) voted on 24 January 2024 to ban unproven generic sustainability claims, ushering in a new era of accountability. The ‘Directive on Empowering Consumers for the Green Transition’ demands companies substantiate their environmental assertions with a "scientific basis." This directive, part of the EU's Circular Economy package, not only reinforces consumer protection but also requires companies to consider how they can produce hard evidence for common claims such as “environmentally friendly or “climate neutral”. Statements based on carbon offsetting will also be banned.

Quoted in this article by Lexology PRO’s ESG reporter, FRA’s Viktor Josefsson stresses that “failing to properly comply with the directive raises serious risks for businesses, including severe reputational damage, penalties and other legal implications.”

As businesses navigate this regulatory landscape, it is crucial to understand the nuances of the directive and be proactive in substantiating environmental claims.  

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