EU Greenwashing Directive Takes Effect: Key Changes for Businesses

🌱 Italy’s Legislative Decree no. 30/2026 introduces stricter rules on sustainability and environmental claims, significantly strengthening the framework against greenwashing and recognising sustainability as an essential product quality, with direct implications for business communications and consumer protection. In our recent article, Rome Senior Associate Giuseppe Salsarulo and Associate Enzo Maria Incutti analyse the key changes and their practical impact for businesses. 🔗 Read more: https://lnkd.in/eTRpykwD #WFW #Sustainability #GreenClaims #ESG #EULaw

Growing up, I remember coming across big brands that advertised their products as “eco-friendly”, “green”, or “nature’s friend”. But as a young consumer, I often wondered — 𝘞𝘩𝘢𝘵 𝘥𝘰𝘦𝘴 𝘵𝘩𝘢𝘵 𝘢𝘤𝘵𝘶𝘢𝘭𝘭𝘺 𝘮𝘦𝘢𝘯? Am I really saving the planet, as these brands seem to claim, simply by spending extra cash on “𝘨𝘰𝘰𝘥 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘱𝘭𝘢𝘯𝘦𝘵” goods? Interestingly, the EU’s Empowering Consumers for the Green Transition Directive (“EmpCo”) seeks to bridge that gap between sustainability marketing and consumer trust. ℹ️𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗘𝗺𝗽𝗖𝗼 𝗗𝗶𝗿𝗲𝗰𝘁𝗶𝘃𝗲? The Empowering Consumers for the Green Transition Directive (“EmpCo”) is an EU directive aimed at strengthening consumer protection by ensuring that environmental and sustainability-related claims are clear, substantiated, and transparent. ℹ️𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗶𝗻 𝗽𝗿𝗮𝗰𝘁𝗶𝗰𝗲? Commercial practices that may now be prohibited include:  • Vague claims such as “environmentally friendly” or “green” without clear evidence;  • Using sustainability labels that are not independently verified;  • Misleading information on a product's durability and reparability  • Advertising carbon neutrality claims based solely on carbon offsetting; The Directive essentially pushes businesses to ensure that sustainability claims are specific, verifiable, and transparent to an average consumer, rather than just catchy marketing taglines (𝘢𝘭𝘵𝘩𝘰𝘶𝘨𝘩 𝘯𝘰𝘵 𝘨𝘰𝘯𝘯𝘢 𝘭𝘪𝘦, 𝘤𝘢𝘵𝘤𝘩𝘺 𝘱𝘩𝘳𝘢𝘴𝘦𝘴 𝘥𝘰 𝘨𝘳𝘢𝘣 𝘢𝘵𝘵𝘦𝘯𝘵𝘪𝘰𝘯). ❗𝗞𝗲𝘆 𝗧𝗶𝗺𝗲𝗹𝗶𝗻𝗲𝘀: • EU Member States must transpose the Directive into national law by 27 March 2026  • The rules will start applying from 𝟮𝟳 𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿 𝟮𝟬𝟮𝟲 It will be interesting to see how companies adapt their branding and marketing strategies moving forward, especially industries that have long relied on sustainability messaging as a competitive advantage. Also glad to have recently attended a webinar presented by Tomas Fiege Vos de Wael and Marisi Fernández Calderón on the EmpCo Directive, which was particularly helpful in understanding the intent of the policy and how it ties into EU’s pre-existing consumer protection framework. #Greenwashing #EmpCo #ECGT #ConsumerProtection #EUlaw #Sustainability #ESG #CorporateSustainability

🚨 What is the real cost of getting green claims wrong? Hint - it is more than the fine if you are based in or trading with the EU. With the EU’s Empowering Consumers for the Green Transition Directive (2024/825), greenwashing is now firmly in the legal firing line. Here’s what’s at stake: 💰 Fines linked to annual turnover 📉 Forced withdrawal of marketing campaigns 📦 Product relabelling and supply chain disruption ⚖️ Legal action from regulators, competitors, and consumers Here is the part many businesses underestimate: ⛔ You can be forced to stop selling the story that drives your product. As this is an EU Directive, enforcement is decentralised across 27 EU countries with each country implementing its own legislation; it is designed to be painful for those who over-claim. If you still think Sustainability claims are a branding exercise, you are in for a shock, they are now a compliance obligation. The companies that win will be the ones who can evidence every claim, align marketing with reality and treat ESG over claiming as a legal risk. In this new landscape if you can’t prove it, you can’t promote it and you may have to pay for saying it. 📕 Read more in our blog: https://lnkd.in/eJWiK5Cm #Greenwashing #ESG #Sustainability #EURegulation #RiskManagement

Why do companies make environmental / green / sustainability claims? Because they know consumers overwhelmingly support companies that are eco-friendly. 7 out of 10 consumers, from all demographic groups, will leave their existing vendor if they find an environmentally certified sustainable option.   Is consumer demand so great that a company will make claims, even if it knows they are not true? Per the study in this post ( https://lnkd.in/d2-Bqn_D ) and other studies, 59% of executives admit their companies are greenwashing. They are saying they are sustainable when they know they are not, because the demand is simply worth the risk to them. Those same executives believe 75% of their peers are also greenwashing (which, they argue, is what is driving them to also exaggerate their achievements). 70% of Scope 3 figures are inaccurate.   What are these companies now facing? - Government regulations are becoming tighter. - Courts are becoming harsher. - Activists are becoming more experienced. - Fines and penalties are becoming larger. - Environmental lawsuits have pierced the corporate barrier and are now going directly after directors and officers, individually.   There are a few options: - Continue until caught and face the consequences. - Remove all environmental claims from your communication and face the lost revenue. - Become environmentally certified sustainable and have your advisor help you craft your communication within the parameters of the program you became certified under.   If you want the revenue side gain and don't mind doing something good, contact us. #edenarkgroup

Greenwashing is a live regulatory risk in Australia, and ASIC and the ACCC are keeping the pressure on so businesses making sustainability claims need to ensure those claims are specific, substantiated and defensible. Daniel Pannett, Honor Kelly, Oscar Doupe-Watt, Jessica White, and I have written an article breaking down where the regulators are focused and what companies should be doing now to reduce risk. #ESG #Greenwashing #Sustainability #ClimateDisclosure #Litigation Edmond Park | Angela Pearsall | Alyssa Phillips | Justin Jones | Elena Lambros | Tony Hill | Miriam Kleiner https://lnkd.in/gpAyG-KH

Excellent article on greenwashing risks, with $8m-13m in civil penalties being secured by ASIC and ACCC over the last year. An issue that continues to be front of mind for regulators and civil society groups alike. Watch this space for the final report of the Senate inquiry into greenwashing, due June 2026. James Clarke Elena Lambros Daniel Pannett Angela Pearsall Alyssa Phillips Edmond Park Justin Jones Tony Hill Miriam Kleiner

Greenwashing enforcement remains a board level risk with ASIC and the ACCC actively pursuing claims, imposing penalties, and signalling that further action is coming. My colleagues have set out the immediate steps organisations should be taking to manage their enforcement and litigation risk. If you operate in any sector making environmental commitments, this is essential reading. Get in touch if Ashurst can help your organisation stay ahead of the curve: https://lnkd.in/gpAyG-KH #ESG #Greenwashing #Sustainability #ClimateDisclosure #Litigation Angela Pearsall | James Clarke | Tony Hill | Miriam Kleiner | Alyssa Phillips | Justin Jones \ Edmond Park

🌍 Greenwashing: what changes with the new European rules. Greenwashing is the practice through which a company communicates environmental commitment or sustainability characteristics that are not supported by data, concrete actions, or verifiable results. Over the years, this phenomenon has led to the spread of claims such as “green”, “eco-friendly”, or “sustainable”, often without real evidence or adequate certifications. To address these practices, the European Union has introduced new rules on so-called Green Claims, requiring Member States to transpose them by March 27. Italy has also started the transposition process, introducing updates to the Consumer Code with the aim of: - strengthening consumer protection - increasing transparency in environmental communication - limiting misleading commercial practices Companies will have until September 27, 2026 to comply with the new requirements. 👉 A significant step pushing the market toward clearer, more verifiable, and more responsible communication. #Greenwashing #Sustainability #GreenClaims #ESG #CircularEconomy #Qwarzo

🌍 “Eco-friendly”… or just good marketing? Sustainability is no longer optional — it’s a brand statement. From “100% natural” to “carbon-neutral”, companies are racing to appeal to environmentally conscious consumers. But here’s the catch Not every green claim is truly green. Welcome to the world of greenwashing — where perception is polished, but reality often isn’t. Misleading labels, vague promises, and selective disclosures are being used to create an illusion of sustainability. And this isn’t just a branding issue anymore — it’s a legal risk. With stricter consumer protection laws and increasing regulatory scrutiny, companies can face penalties, corrective actions, and even litigation for false environmental claims. What’s at stake? Not just compliance — but credibility. In an era where consumers are more aware than ever, trust once broken is hard to rebuild. The real shift businesses need to make: Move from green marketing ➝ to genuine sustainability Because today, transparency isn’t a choice — it’s an expectation. For a detailed analysis on the legal implications of greenwashing, refer to the link below. https://lnkd.in/g4FeUxJ7 #Greenwashing #Sustainability #CorporateLaw #ESG #BusinessEthics #ConsumerProtection #LegalAwareness

Why do companies make environmental / green / sustainability claims? Because they know consumers overwhelmingly support companies that are eco-friendly. 7 out of 10 consumers, from all demographic groups, will leave their existing vendor if they find an environmentally certified sustainable option.   Is consumer demand so great that a company will make claims, even if it knows they are not true? Per the study in this post ( https://lnkd.in/dqsxpmch ) and other studies, 59% of executives admit their companies are greenwashing. They are saying they are sustainable when they know they are not, because consumer demand has been worth the risk to them because their fear of being caught has been low. Those same executives believe 75% of their peers are also greenwashing (which, they argue, is what is driving them to also exaggerate their achievements). 70% of Scope 3 figures are inaccurate.   What are these companies now facing? - Government regulations are becoming tighter. - Courts are becoming harsher. - Activists are becoming more experienced. - Fines and penalties are becoming larger. - Environmental lawsuits have pierced the corporate barrier and are now going directly after directors and officers, individually.   There are a few options: - Continue until caught and face the consequences. - Remove all environmental claims from your communication and face the lost revenue. - Become environmentally certified sustainable and have your advisor help you craft your communication within the parameters of the program you became certified under.   If you want the revenue side gain and don't mind doing something good, contact us. #edenarkgroup