A new European directive, set to take effect on September 27, aims to reduce misleading environmental claims by companies, often referred to as "greenwashing." The directive targets specific terms, logos, and labels that companies use to suggest their products are more environmentally friendly than they actually are. It applies to a wide range of industries, including food, cosmetics, and electronics. However, France is delaying the implementation of the directive because it has not yet fully translated it into national law.
The directive prohibits certain environmental claims, such as "carbon neutral," when they rely on carbon emission compensation mechanisms. These mechanisms allow companies to offset their emissions by funding environmental projects elsewhere. Many companies have already adjusted their marketing strategies in response. For example, Apple removed the "carbon neutral" label from its Apple Watches by the end of 2025, and the French company Wattwiller removed its "100% carbon neutral" logo to comply with the new rules.
The directive also phases out internal company-created environmental labels. Only public labels, like "Bio" and the European eco-label, and private labels certified by independent organizations are allowed. Labels developed by companies themselves, such as "Harmony charter" on Lu biscuit packaging and "Clean at Sephora," are now under scrutiny. Mondelez, which owns the Lu brand, has said it will not remove its label but will make some changes to its claims. Sephora has not yet commented on its label.
The directive also restricts vague environmental claims, such as "good for the planet" or "environmentally friendly," unless they are backed by official labels or independent verification. The responsibility to prove that claims are not misleading now falls on the companies themselves rather than on consumer groups. Companies that fail to comply could face fines of up to 10% of their annual revenue.
France is under pressure from the European Union to implement the directive. The necessary changes are included in a bill on adapting to EU law (Ddadue), which was passed by the Senate but has not yet been approved by the National Assembly. It remains unclear whether the bill will be finalized before the upcoming presidential election.
European Directive Targets Greenwashing with New Environmental Claims Rules
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