EU considering plans law to force companies to prove green…
The European Union has drafted plans to make companies back up green claims about their products with science-based evidence, in an attempt to fight greenwashing and misleading advertisements. The draft legal proposal by the European Commission aims to clamp down on companies promoting their products as “climate neutral” or other “green” claims unless these can be substantiated. There would have to be proper methodology that tracks environmental impacts of all sorts, including air pollution and CO2 emissions. Currently most green claims are woolly, vague and misleading, and customers are buying products based on unreliable information. Under the proposal, companies that claim their product has a positive environmental impact must also disclose if this causes an negative impact in another area. Claims based on promises of future environmental performance must be backed up by milestones the company will achieve by specific dates, including if carbon offsets are to be used. There is currently no law against greenwashing in the UK, but the Financial Conduct Authority consulted in October 2022 about greenwash claims made for financial products, as it said the financial services sector was a major culprit. As is the air travel industry. .Tweet EU plans law forcing companies to prove green claims are real – draft By Kate Abnett (Reuters) BRUSSELS, Jan 13th 2023 The European Union has drafted plans to require companies to back up green claims about their products with evidence, in a bid to fight greenwashing and misleading advertisements, according to a document seen by Reuters. The draft legal proposal by the European Commission aims to clamp down on companies promoting their products as “climate neutral” or “containing recycled materials” if such labels are not substantiated. EU countries would have to ensure environmental claims are proven against a science-based methodology, such as a “product environmental footprint” framework that tracks environmental impacts across 16 categories including the air and climate change. “By fighting greenwashing, the proposal will ensure a level playing field for businesses when marketing their greenness,” said the draft, which could still change before it is published. The attempt to stamp out greenwashing comes after a Commission assessment of 150 claims about products’ environmental characteristics in 2020 found that most – 53% – provided “vague, misleading or unfounded information”. Under the proposal, companies that claim their product has a positive environmental impact must also disclose if this causes an negative impact in another area. Claims based on promises of future environmental performance must be backed up by milestones the company will achieve by specific dates. Companies whose claims rely on buying carbon credits to offset their own environmental impact would have to disclose this. EU countries would need to establish a system to verify companies’ claims, and impose penalties for non-compliance. The draft document said the move would help consumers identify which products are truly eco-fri
