EU cracks down on cosmetic greenwashing with new rules in Green Claims Directive

18 Jun 2024 --- The EU Council’s latest adoption (general approach) of its position on the Green Claims Directive targets cosmetic companies’ explicit environmental claims when marketing the greenness of their products, including environmental impacts, carbon claims, performance or trade.

Companies must substantiate environmental claims with scientific evidence and clear specifications and get third-party verifications unless exempted. Public and private labeling schemes must comply with some exemptions for EU or nationally governed schemes. Also, carbon offset claims must detail carbon credits and show net-zero progress. Microenterprises will get extended compliance time and support.

The new rules will apply to existing and future environmental labeling schemes. Additionally, the EU Council distinguishes explicit environmental claims from environmental labels to make specific obligations for each.

“We reached an important agreement to fight greenwashing by setting rules on clear, sufficient and evidence-based information on the environmental characteristics of products and services. Our aim is to help European citizens make well-founded green choices,” comments Alain Maron, minister of the Government of the Brussels-Capital Region, responsible for climate change, environment, energy and participatory democracy.

The general approach will serve as the foundation for discussions with the EU Parliament about the directive’s final form. Negotiations are expected to begin during the new legislative cycle.

The directive mandates third-party verification of environmental claims to ensure transparency and reliability.Additions to directive
The Green Claims Directive seeks to curb greenwashing and empower consumers to make environmentally informed decisions. It sets minimum requirements for companies substantiating, communicating and verifying environmental claims.

The directive outlines companies’ criteria for using scientific evidence to substantiate their claims. The claims and labels must be clear and specific about the environmental characteristics they cover, such as durability, recyclability and biodiversity.

The EU Council adds to the directive the requirement of independent third-party experts to verify environmental claims and labels before publication. However, it also introduces a simplified procedure that exempts certain claims from third-party verification if companies can show compliance using a technical document.

Microenterprises will be given an extra 14 months to adhere to the regulations and will receive guidelines, resources, funding and training to lessen the administrative load.

Public environmental labels
The EU Council’s adoption also enables the creation of new public environmental labeling schemes, exempting those governed by EU or national law from third-party verification if they meet EU standards.

EN ISO 14024 type one eco-labeling schemes will be exempt from verification unless officially recognized in a member state, outlines the EU Council. Recognition by one member state would be sufficient for the whole EU market.

Microenterprises will get extended compliance time and support.Carbon offset and contribution claims
The general approach adds new requirements for proving climate-related claims, including those involving carbon credits. 

Companies must disclose the type and quantity of carbon credits they hold and whether they are permanent or temporary. The directive distinguishes between contribution claims that support climate action and offset claims that balance emissions.

To make offset claims, companies must demonstrate a net-zero target, progress toward decarbonization, and the percentage of total greenhouse gas emissions offset.

Consumer data
A recent Eurobarometer survey revealed that 90% of Europeans support stricter rules for calculating environmental impact and related claims, highlighting strong public backing for the initiative.

Meanwhile, Innova Market Insights data indicates a +44% average annual growth in product launches with plant-based claims from October 2018 to September 2023. Beauty and personal care launches tracked with natural and organic claims grew by 9% between July 2017 and June 2022. Europe led the way at 61%.

The general approach will serve as the foundation for discussions with the EU Parliament about the directive’s final form.Industry attitudes
The Green Claims Directive builds on the European Green Deal’s commitment to combating false environmental claims. It aims to accelerate the EU’s transition to a circular and clean economy and achieve climate neutrality by 2050.

Earlier this year, Cosmetics Europe applauded the EU Parliament’s adoption of the Green Claims Directive. 

“The EU cosmetics industry fully supports the objectives of the Green Claims Directive. Together with the proposal on Empowering Consumers for the Green Transition, the new rules will be key to fighting greenwashing practices and creating a level playing field (and legal clarity) among traders,” stated the cosmetics association.

Cosmetics Europe believes the rules will help to ensure consumers have access to “trustworthy, relevant and transparent” information about the sustainability of the products and services they pay for.

However, the industry previously expressed concern about the directive “green hushing” natural cosmetic innovations. “While misleading claims should not be allowed, we question whether it really is the intention of the EU Parliament to prohibit any green claim, including those that contribute to more sustainable consumption, through longer product lifetime, product effectiveness, or resource and energy efficiency,” read a letter.

In related news, the EU Parliament also released guidelines for businesses looking to comply with the Directive on Empowering Consumers for the Green Transition, which it approved last month.

By Venya Patel