The European Union is taking a strong stance against greenwashing, with new laws coming into effect in 2026.
These laws are designed to protect consumers from misleading environmental claims on products, services or solutions, and to support sustainable consumption.
In practice it will mean phrases such as “Carbon neutral”, “Net zero”, “Green” and others are effectively banned on promotional material and packaging unless the accuracy of the claim can be proven.
We think this is a great move.
Trust plays a huge part in the sustainability industry - as you are trusting those you work with, or buy from, to deliver on the green claims they promise. When this doesn’t happen, you rightly feel cheated - both financially, but also, critically, because it undermines the positive sustainability you are working to deliver.
The new rules should be a great first move in helping bolster trust in the sustainability sector, by giving consumers and businesses alike added confidence in the claims made about a product or service. By fostering this trust - and undoing some of the loss of trust that greenwashing has caused - it will help grow both the sector and the impact it creates.
What is greenwashing?
Greenwashing is when a company makes misleading claims about the environmental benefits of its products or services. This can be done in a variety of ways, such as using vague language, making unsubstantiated claims, or using false or misleading labels.
Greenwashing can mislead consumers and make it difficult for them to make informed choices about the products they buy. It can also damage the reputation of genuine green businesses and make it harder for them to compete.
A famous example of this is the Volkswagen Diesel Emissions scandal. Volkswagen claimed its new diesel engines were much cleaner than alternative diesel cars - but then was forced to admit to cheating emissions tests by installing a "defeat device" in its diesel vehicles. This device allowed the vehicles to pass emissions tests in the lab, but once on the road, they emitted up to 40 times more pollutants than allowed.
What are the key elements of the new EU greenwashing laws - and how could they impact our partners?
The EU greenwashing laws will have an impact on anyone who wants to promote their products, services or work as being environmentally friendly. However, how big that impact is depends entirely on what they are claiming.
Under the new laws, companies will not be able to make unsubstantiated environmental claims about their products or services. They will also need to be transparent about the environmental impact of their products and services, including their durability and repairability.
Here’s how it manifests in reality:
1. Businesses must not make misleading environmental claims about their products or services.
This means that companies cannot make any claims about the environmental benefits of their products or services that are not true or that cannot be substantiated. For example, they cannot claim that their product is "carbon neutral" or "eco-friendly" unless they have evidence to support these claims.
2. Any environmental claims they do make must be based on verified certification schemes or government regulations.
This means that companies must be able to back up their environmental claims with evidence from a credible third-party source. This could include a certification scheme such as the EU Ecolabel or the Fairtrade label, or a government regulation such as the EU's Ecodesign Directive.
3. They must be transparent about the environmental impact of their products and services, including their durability and repairability.
This means that companies must provide consumers with clear and accurate information about the environmental impact of their products and services throughout their entire life cycle, from production to disposal. This includes information about the materials used in the product, the energy and resources consumed during production and transportation, and the product's durability and repairability.
4. They cannot use sustainability labels or information that is unreliable or non-transparent.
This means that companies cannot use sustainability labels or information that is not based on a credible third-party certification scheme or government regulation. They also cannot use labels or information that is misleading or confusing to consumers.
So, that’s all the things to be careful of - the things ‘not’ to do. But what about what companies can do?
Well, here are some specific examples of what companies can do to prepare for these new requirements over the next two and a bit years:
- They can have their products and services certified by a credible third-party certification scheme, such as the EU Ecolabel or the Fairtrade label.
- They can publish life cycle assessments (LCAs) of their products and services, which provide a detailed analysis of the environmental impact of the product or service throughout its entire life cycle.
- They can use clear and concise language to communicate environmental information to consumers.
- They can avoid using jargon or technical terms that consumers may not understand.
- They can provide consumers with information about the durability and repairability of their products.
- They can avoid using sustainability labels or information that is not based on a credible third-party certification scheme or government regulation.
So what do company’s need to consider now with regards to any products they are labelling as ‘green’ or environmentally friendly?
- Carefully review their marketing materials to ensure that they do not make any misleading environmental claims.
- Work with their suppliers to ensure that they have access to reliable and verifiable data about the environmental impact of their products and services.
- Use clear and concise language to communicate environmental information to consumers.
- Avoid using sustainability labels or information that is not based on a certification scheme or government regulation.
How does it impact my business’ partnership with Switch2Zero?
One of the reasons S2Z is positive on the new rules is that we fundamentally believe in transparency and openness - it’s one of the reasons we run an open ledger on tree-planting, for example.
In reality, there are two elements to the answer to this question - firstly, how do we prove what we do, and secondly, how do you prove what you say in relation to the services you contract from us.
Let's start with the first one. At Switch2Zero, we only work with organisations that share our transparency principles. For example, all our offsetting schemes are contracted through the UN and Gold Standard schemes. This scheme tests, monitors and digitally certifies offsetting projects to ensure they meet the CO2e reduction goals they claim, which in turn ensures your investment into them is valid. You can read more about this process here: https://www.goldstandard.org/our-story/gold-standard-global-goals
We believe that the Gold Standard is absolutely compliant with the new EU Rules regarding proof - and that therefore organisations and individuals that purchase offsetting from us are doing so in accordance with the rules. But we also promise to watch this space closely, and if things change, then we’ll tell you.
The same is true for our tree-planting and plastic removal schemes. Again, we choose our partners carefully to ensure complete transparency in their work and our investment into them. You can read more about Eden Reforestation, Trees for the Future and PlasticBank here.
The second element to the question is how do you prove what you say in relation to the services you buy from us. For example, the badges we give you when you purchase an offset service or planting trees per purchase that claim a green credential.
The simple answer is, you can check your dashboard. Every service you take from us gets logged onto your personal dashboard - where both the purchase and the impact will be logged. Our ledger is open across the business, so you can see clearly that we undertake the actions we promise.
The changes are a few years off - and over the coming months and years, the EU and it’s member states will publish more and more information on what exactly this directive means. This will include specific detail on accreditation schemes and what constitutes provable data. We will follow this closely, and as soon as we know more, we’ll update you - and ensure that we, on your behalf - and on behalf of the planet - stay fully compliant.
Jargon Debunker:
- Carbon footprint: This term refers to the total amount of greenhouse gases emitted by a product or service over its entire life cycle. However, many consumers may not be familiar with this term or what it means. Instead of using the term "carbon footprint," company's can explain the environmental impact of their products or services in a more straightforward way, such as saying "this product emits 10% less greenhouse gases than other similar products."
- Net zero: This term refers to the state of achieving an overall balance between greenhouse gas emissions produced and greenhouse gas emissions removed from the atmosphere. However, this term can be complex and confusing for consumers. Instead of using the term "net zero," company's can focus on specific environmental benefits, such as saying "this product is made with 100% renewable energy."
- Sustainable: This term is often used vaguely and can mean different things to different people. Instead of using the term "sustainable," company's can be more specific about what makes their products or services sustainable. For example, they could say "this product is made with recycled materials" or "this product is designed to last for many years."
- Eco-friendly: This term is often used to describe products or services that are good for the environment. However, this term can be subjective and can be used to mislead consumers. Instead of using the term "eco-friendly," company's can provide specific details about how their products or services benefit the environment. For example, they could say "this product is made with materials that are non-toxic and biodegradable" or "this product helps to reduce water pollution."
- Instead of "biomimicry," company's can say "our products are inspired by nature."
- Instead of "circular economy," company's can say "we design our products to be recycled or reused."
- Instead of "cradle to cradle," company's can say "we use sustainable materials and design our products to last."
- Instead of "downcycling," company's can say "we turn recycled materials into new products."
- Instead of "embodied energy," company's can say "we use energy-efficient manufacturing processes."
- Instead of "environmental impact assessment (EIA)," company's can say "we assess the environmental impact of our products and services."
- Instead of "green building," company's can say "we design and build energy-efficient buildings."
- Instead of "life cycle assessment (LCA)," company's can say "we analyse the environmental impact of our products and services over their entire life cycle."
- Instead of "net positive impact," company's can say "we aim to create a positive impact on the environment and society."
- Instead of "offset," company's can say "we invest in projects that reduce greenhouse gas emissions or remove carbon dioxide from the atmosphere."
- Instead of "renewable energy," company's can say "we use clean energy sources like solar and wind power."
- Instead of "sustainable development," company's can say "we develop products and services that meet the needs of the present without harming future generations."
- Instead of "upcycling," company's can say "we turn recycled materials into high-quality products."
