Pressure rises on European manufacturers over greenwashing

The EC has proposed two more measures to tackle greenwashing and environmental waste by firms that sell products across the European Union. The Commission has proposed a Green Claims Directive (GCD) that aims to deliver common criteria against greenwashing and misleading environmental claims. It said that under this proposal, consumers will have more reassurance that something sold as green meets the criteria and delivers better-quality information to choose environment-friendly products and services. The EC said that businesses will also benefit. It argues that companies that make a genuine effort to ensure their products are more sustainable will be more easily recognised and rewarded by consumers, rather than face unfair competition. The proposal will help establish a level playing field when it comes to information about environmental performance of products. An EC study from 2020 highlighted that 53.3% of examined environmental claims in the EU were found to be vague, misleading or unfounded, and 40% were unsubstantiated. “The absence of common rules for companies making voluntary green claims leads to ‘greenwashing' and creates an uneven playing field in the EU's market, to the disadvantage of genuinely sustainable companies,” said the EC. According to the GCD proposal, companies that choose to make a ‘green claim' about their products or services will have to respect minimum norms on how they substantiate these claims and how they are communicated. The proposal targets explicit claims such as t-shirts made of recycled plastic bottles, packaging made of 30% recycled plastic and ocean-friendly sunscreen. It also aims to tackle the proliferation of labels, as well as new public and private environmental labels. It covers all voluntary claims about environmental impacts, product performance, services or the trader itself. Green claims will need to be independently verified and proven with scientific evidence before companies can communicate them to consumers. As part of the scientific analysis, companies will have to identify the environmental impacts that are actually relevant to their product, as well as identify any possible trade-offs, to give a full and accurate picture. The CGD proposal must now be approved by the European Parliament and Council. It was presented alongside a proposal on common rules promoting the repair of goods, which the EC said will also contribute to sustainable consumption and enhance the circular economy. The latest proposal on common rules promoting the repair of goods has been introduced because replacement has often been prioritised over repair whenever products become defective. Insufficient incentives have been given to consumers to repair their goods when the legal guarantee expires, said the EC. It said that the proposed rules will make it easier and more cost-effective for consumers to repair rather than replace goods. The EC believes the move will boost demand in the repair sector while incentivising producers and sellers to develop more sustainable business models. The EC said that the rules would ensure more products are repaired within the legal guarantee. They would also mean that consumers have easier and cheaper options to repair products that are technically repairable when the legal guarantee has expired, or when the good is no longer functional because of wear and tear, it added. The proposal introduces a new legally enforceable ‘right to repair' for consumers, both within and beyond the legal guarantee. This will come as something of a shock to many European manufacturers that face a new cost and liability exposure. There rules would also introduce a producers' obligation to inform consumers about products that they are obliged to repair themselves. The proposal will see the creation of an online matchmaking repair platform to connect consumers with repairers and sellers of refurbished goods in their area. The platform will enable searches by location and quality standards, helping consumers find attractive offers. There are also plans to introduce a European Repair Information Form that consumers will be able to request from any repairer, bringing transparency to repair conditions and price, and making it easier for consumers to compare offers. The EC will create a European quality standard for repair services to help consumers identify repairers who commit to higher standards. This ‘easy repair' standard will be open to all repairers across the EU willing to commit to minimum quality standards, for example based on duration or availability of products, said the EC. This proposal now needs to be adopted by the European Parliament and Council.

Pressure rises on European manufacturers over greenwashing

Producers will also have to offer right to repair

Want to read this article?

Read Next

Howden Tiger says property cat reinsurance market hardening at quickest pace since 1990s

Hong Kong insurers see first quarter rise in general insurance premiums

EU Parliament adopts directive to stop environmental and human abuse

Portuguese risk managers question value of cyber cover

Cyber losses from 1-in-200-year event could reach $33.4bn, says Guy Carpenter

Howden Tiger says property cat reinsurance market hardening at quickest pace since 1990s

Hong Kong insurers see first quarter rise in general insurance premiums

EU Parliament adopts directive to stop environmental and human abuse

Portuguese risk managers question value of cyber cover

Cyber losses from 1-in-200-year event could reach $33.4bn, says Guy Carpenter

This website uses cookies to improve your experience. You can review our Cookie Policy here.

Want to read this article?

Read Next

Howden Tiger says property cat reinsurance market hardening at quickest pace since 1990s

Hong Kong insurers see first quarter rise in general insurance premiums

EU Parliament adopts directive to stop environmental and human abuse

Portuguese risk managers question value of cyber cover

Cyber losses from 1-in-200-year event could reach $33.4bn, says Guy Carpenter

Related Articles

This website uses cookies to improve your experience. You can review our Cookie Policy here.