New EU Directive on Green Claims: is your company at risk? | Achilles
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New EU Directive on Green Claims: is your company at risk?


New EU Directive on Green Claims: is your company at risk?

As a new EU directive emerges in the European Parliament, is your business at risk of being left behind?

Cityscape with green forest in the foreground - new eu directive

Data shows that less than 50% of companies have an action plan in place to reduce their carbon, and less than 20% have a Net Zero strategy. Becoming carbon neutral feels like a long way off for many businesses, but change is critical and progress cannot happen without making a step in the right direction. Before that important first step can be taken, an actionable and realistic plan is needed. Does your business know how to begin a plan to begin a journey to Net Zero?

Offsetting becoming a thing of the past?

On 15th May lawmakers in the European Parliament voted in favour of new rules addressing the need for more reliable and verifiable information for green claims made by businesses. If enacted, the proposed legislation would prohibit companies from claiming their carbon neutrality based solely on offsetting schemes. Going one step further, the legislation identifies a series of generic green claims such as ‘sustainable’, ‘plastic free’ or ‘natural’ that would be banned unless detailed evidence is presented.

Unfair for Consumers and Damaging for Businesses

Requiring companies to present evidence to substantiate their claims is a huge step in the right direction. There have been numerous cases of companies making unsubstantiated claims regarding green credentials with no evidence to back them up. This ‘greenwashing’ can be unfair to consumers, giving them incorrect information and unclear guidance when making important buying decisions. Inaccuracies in green claims could hinder the very real need for business to lead in the fight against climate change. Making businesses back up their claims is a real positive force in creating a clearer and fairer world for the consumer.

The Greater Carbon Reduction Challenge

Bringing in new directives should bring positive changes to the business community and their environmental impact. Could there be a greater challenge for businesses in their journey to reduce their overall carbon consumption? Analysis of companies located across the globe who have responded to the MyAchilles Carbon Module identified challenges. Less than 50% of companies have an action plan in place to reduce their environmental impact. Even less had developed a decarbonization or Net Zero strategy – with only 20% having made steps in this direction. The evidence suggests that there is still a long way to go to combat the effects carbon has on the environment. With companies like John Sisk and Co gaining carbon zero certification with the Achilles Carbon Reduce scheme, there are simple and cost effective ways companies can help achieve this without a huge headache.

Creating Meaningful Reductions

Companies will be accountable for their sustainability claims and action to support this can bring positive change. There are many companies within international supply chains are yet to begin reducing their environmental impact or carbon footprint. Is there something more that can be done? With greater emphasis on businesses identifying ways to reduce their carbon impact, we could see more noticeable impact. Combining meaningful plans with verifiable data could provide the foundations for transparent reporting and reductions in greenhouse gas emissions globally.

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