The importance of credible claims

It is increasingly common to see sustainability labels, text claims, and “green” imagery on products, giving consumers the impression that the product is sustainably produced. However, not all of these claims are backed up by credible company action, or they might only reflect attributes for a specific part of the product or its packaging. This propensity to overstate sustainability credentials dilutes recognition for credible claims and has led to significant consumer mistrust. This guidance series highlights key aspects of credible claims-making to support action by companies and sustainability schemes. It comes at a time when new legal structures are taking shape to tackle greenwashing, particularly the EU Empowering Consumers for the Green Transition (ECGT) Directive.

Specific and generic environmental claims

A key focus of legislation such as the ECGT Directive is on distinguishing between claims that are “specific” about environmental ambitions and achievements as opposed to those that are “generic”. It can be appealing for companies to use generic terms such as “eco-friendly” or “sustainable” to succinctly convey positive credentials, but this is prone to misinterpretation and the overclaiming of what underlying actions deserve. As a result, the ECGT Directive and similar legislation prohibit the use of generic language in environmental claims and communications, except when specific conditions are met.

About the ECGT Directive

The 2024 Empowering Consumers for the Green Transition (ECGT) is an EU Directive designed to complement and build on existing principle-based directives, such as the 2005 Unfair Consumer Practices Directive (UCPD). By including more details on what makes claims misleading, the ECGT Directive aims to specifically tackle greenwashing. The final text was adopted in February 2024, with full enforcement across EU Member States set to commence from 27 September 2026. It applies to Business-to-Consumer (B2C) claims, although the scope may be expanded to Business-to-Business (B2B) claims by Member States during transposition.

Generic environmental claims

The Directive defines an environmental claim as any non-mandatory message or representation which states or implies that a product, category, or brand has a positive or zero impact on the environment. A generic environmental claim is further defined as any written or oral claim where the specification is not provided in clear and prominent terms on the same medium. Terms highlighted as generic include “ecological”, “conscious”, “energy efficient”, “climate neutral”, “green”, and “biodegradable”. These are prohibited unless recognised excellent environmental performance relevant to the claim is demonstrated. Brand or product names are also included in this scope, meaning generic or misleading language in a name could be prohibited.

Specific environmental claims

To ensure a claim is not considered generic, it must be specified in “clear and prominent terms on the same medium, such as the same advertising spot, the product’s packaging or online selling interface.” While the Directive provides little detail on the exact threshold for a specific claim, an example of a specific claim is: “100% of energy used to produce this packaging comes from renewable sources”. This provides flexibility for the specification to be provided alongside the claim itself.

About recognised excellent environmental performance

Generic claims are permitted if excellent performance is demonstrated through Regulation (EC) No 66/2010 (EU Ecolabel), officially recognised EN ISO 14024 ecolabelling schemes, or by corresponding to top performance characteristics in accordance with Union laws, such as class A in Energy labelling. However, terms like “sustainable”, “responsible”, or “conscious” are generally not permitted even with excellent environmental performance, as they imply social characteristics that fall outside the scope of these methods. The exception is when these terms are used within a sustainability label based on a qualifying certification scheme.

Sustainability labels

The ECGT Directive defines a sustainability label as any voluntary trust or quality mark promoting a product by reference to its environmental or social characteristics. The Directive prohibits displaying labels not based on a certification scheme or established by public authorities. Compliant labels are exempt from the “generic environmental claim” definition. However, if a label creates the impression that a product has zero impact or is less damaging than competitors, it must still comply with the stricter specifications for environmental claims.

Requirements for certification schemes under the ECGT Directive

A certification scheme must be a third-party verification scheme that meets four criteria: (i) it is open under transparent and non-discriminatory terms; (ii) requirements are developed in consultation with experts and stakeholders; (iii) it has procedures for non-compliance and withdrawal of the label; and (iv) monitoring is carried out by an independent third party. Sustainability systems that apply the ISEAL Code of Good Practice and adopt third-party verification are well-positioned to meet these expectations, as Section 8 of the Code contains specific requirements for claims management and traceability.

Text claims

In addition to labels, voluntary sustainability systems (VSS) often provide pre-approved text claims. Even if linked to a compliant scheme, these text claims must still be specific to meet Directive requirements. Many schemes are sticking to factual terminology such as “certified”, which can succinctly communicate credentials if used transparently by specifying what is being certified and to what standard.

Recommendations for making credible claims

Businesses are advised to follow general good practice by ensuring claims are: (1) clear and free from misleading details; (2) accurate and based on substantiated data; (3) relevant to material issues for the product; (4) focused on additional value beyond legal requirements; and (5) underpinned by a transparent and robust system. Effective systems generate succinct, factual, and specific claims to support credible claims-making.