The third monumental shift comes from the legislative corridors of the European Union, where new directives have been introduced to combat greenwashing and enforce transparency in sustainability claims. The so-called
Green Claims directive complements the
already-approved EU ban on greenwashing. The aim of the Green Claims Directive (GCD) is to prevent false or misleading advertising from hindering the green transition.
The newly introduced regulations specify the information that must be disclosed to both authorities and the public prior to making any explicit environmental claims, establishes comprehensive criteria for the endorsement of environmental labels, mandates third-party verification of these claims, and outlines penalties for non-compliance. According to the GCD, only businesses that have had their environmentally friendly assertions verified may benefit commercially from making environmental claims.
Environmental claims and labels will also be subject to third-party verification. EU Member States will be expected to set up procedures for verifying the substantiation and communication of explicit environmental claims against the requirements of the GCD. The certification bodies will provide companies with a certification of conformity, confirming that the claim or label complies with the regulation.
On March 12, 2024, the European Parliament outlined its stance, detailing its perspectives on the scope of claims addressed, expectations for the operationalization of the rules, and a timeline for implementation. Following the European Parliament elections in early June, the CDG will undergo further consideration. Should an agreement be reached between the European Parliament and the Council of the European Union, EU Member States will then have 24 months to transpose the directive into national legislation and an additional 12 months to enforce the provisions.
The EU's Greenwashing Directive, alongside with the new Green Claims Directive, represent a legislative advance in ensuring that sustainability claims made by businesses are not only transparent and truthful but also substantiated by rigorous, third-party verification. By setting clear guidelines and standards for environmental claims, the EU is fostering a marketplace where sustainability is a measurable, verifiable practice. Thus, opting for a certification led by non-accredited schemes will be considered as a contribute to greenwashing.
The EU's directives are set to have a profound impact on businesses across hospitality sector, encouraging OTAs and accommodations to engage in genuine sustainability practices. For businesses, this represents both a challenge and an opportunity: the challenge of adapting to stricter standards and the opportunity to differentiate themselves in a market increasingly driven by sustainability-conscious consumers. Steering clear of greenwashing claims can assist businesses in preserving their corporate image, enhancing consumer confidence, and fostering responsible and sustainable operational methods.
Learn more here:
New law banning greenwashing https://www.europarl.europa.eu/news/en/press-room/20240112IPR16772/meps-adopt-new-law-banning-greenwashing-and-misleading-product-information 'Green claims' directive: Protecting consumers from greenwashing https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2023)753958