Businesses have just made it through the GDPR reforms, but the next hurdle is already ahead: the EU’s upcoming Green Claim Directive will introduce severe sanctions for unfounded environmental claims. The recommended maximum sanction is up to at least 4% of a company’s turnover.
While the task may be daunting, we at Infine are relieved that unfounded environmental claims will be put under control. For far too long, the meaning of sustainability has been diluted by product and service descriptions such as “carbon negative”, “eco-friendly” and “handmade”. The claims favoured by advertising agencies, which are made on light grounds, take credibility away from genuinely responsible products.
The new directive may lead to some companies abandoning sustainability marketing altogether. However, it may be worth ensuring that your company does not end up in this group: according to a cash register study, sustainably branded products sell better and generate higher margins. Therefore, from a business perspective, it does not make sense to abandon sustainability branding, as long as there is a basis for the sustainability claims.
Another change that the directive may bring about is the ending of national eco-labels. Currently, only the EU:n Ecolabel may meet the criteria of the Directive. With the disappearance of labels familiar to consumers, companies will have to improve their understanding of the sustainability of their own products, and how their own products compare in terms of sustainability with other similar products. The Green Claims Directive does not yet include social responsibility claims, but we anticipate that they will be included in the Green Claims Directive, in line with the EU taxonomy.
The directive makes it even more important that we continue researching and developing sustainability data models in Finland, such as GS1:n Food Data Finland.Sustainability marketing desperately needs standards, guidelines, clarity and more expertise. At present, compliance with the Green Claims Directive can be difficult because there are still no clear ways to keep sustainability marketing fact-based.
Fortunately, for five years we have been working hard to develop ways to identify and verify the sustainability of products and services based on science and the expertise of top experts. That’s why we are confident that when the Green Claims Directive comes into effect, we will already be able to provide easy and affordable ways to keep sustainability marketing fact-based. So let’s work together to ensure that sustainability can be a profitable way to gain a competitive advantage. It’s in everyone’s interest, not least for companies themselves.
If you are not yet up to date on the sustainability of your business, now is the time to analyse and identify the actual sustainability features of your products and services. We offer an easy solution to this, Infine’s Sustainability Analysis. The Sustainability Analysis helps you understand the strengths and risks of your product in both social and environmental sustainability areas, and identify any missing or incomplete information relevant to the sustainability of your product. The analysis can be used in marketing, production, sourcing or business development towards a more sustainable direction.
Schedule a meeting if you need help with sustainability management, handling sustainability data, or preparing for the Green Claims Directive.
