back to top

Greenwash claims face red flag from the European Union

March, 2024

The European Commission is looking to bring in new legislation to clamp down on greenwashing by companies. This has major implications for businesses and their communication advisers who are promoting their Environmental, Social and Corporate Governance (ESG) credentials, and who operate in the European Union.

Any company selling their goods and services in the EU Single Market and making claims about their eco-credentials will soon face a whole raft of new legal requirements currently going through the European Commission.

The move comes after an EU study found that 40% of all green claims were completely unsubstantiated by the company, with 53% found to be ‘vague, misleading or unsubstantiated’.

In an effort to protect consumers, and bring about transparency, legal clarity and a level playing field for businesses, the EU is pushing forward with its Green Claims Directive, currently going through parliament.

If, as expected, the new law comes into force by 2026, it will require all green claims to be verified by the Commission’s independent experts before a company makes their environmental claims public. If the company fails to back up their claims and comply, it could lead to a fine of at least 4% of its annual turnover.

Andrew Metcalf, Managing Director of Maxim, said: “While this legislation puts an added cost of compliance onto business, it should commercially benefit those with a genuine environmental offer or performance by improving consumer confidence.

“The good news for those responsible for communicating ESG credentials is that it will help those promoting positive environmental initiatives or products by giving the media confidence that the story stacks up.”

Companies looking to promote their ESG credentials should contact Maxim via hello@maxim-pr.co.uk. 

Andrew Metcalf - Director

Andrew Metcalf

Maxim / Managing Director

posted in: advice,

we'd love to work with you

get in touch
tendentious-parliamentary