The EU’s groundbreaking anti-greenwashing law has been years in the making. In a dramatic turn of events, the Green Claims Directive is now in danger, just shy of the finish line. Last week, many were reporting that the proposal was withdrawn by the European Commission, ending the possibility of the directive coming into force. However, this week, the European Commission clarified that the directive is not dead yet. Reporting from ESG Today indicates that the sticking point is the inclusion of microenterprises:
“Despite clarifying that the Directive has not been withdrawn, however, the spokesperson clarified that the Commission did intend to withdraw it if microenterprises were not exempted from the scope of the anti-greenwashing proposal… In the statement to ESG Today, the Commission spokesperson said that including microenterprises, or companies with fewer than 10 employees and less than €2 million in revenue, in the scope of the directive would result in a very high administrative burden on the companies, in contrast with the Commission’s priority to reduce such obligations for smaller companies. There are approximately 30 million microenterprises in the EU, accounting for approximately 96% of companies, according to the Commission.”
The future of the Green Claims Directive is uncertain. Some accuse the European Commission of harboring ulterior motives, arguing that a microenterprise exemption was already inevitable in the third round of trialogues. If the Green Claims Directive does move forward, it will substantially alter how marketers are allowed to present sustainability information. Most notably, it will institute proactive greenwashing protection, requiring companies to prove their sustainability claims prior to publicly marketing their product.
Our members can learn more about greenwashing here.
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