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A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

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The “one stop” resource for information about responsible executive compensation practices & disclosure.

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PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

I first wrote about the Green Claims Directive in spring 2023. At that time, it was a groundbreaking new proposal. It would have required companies to verify all sustainability claims through third-party product testing. This would have upended sustainability marketing in the EU and created a unique verification system to prevent greenwashing.

The 2024 EU elections interrupted the Directive mid-development. The election results changed the EU’s political makeup, leading to the Omnibus simplification reforms. EU lawmakers hotly debated the future of the Directive. When reporting indicated that the EU would withdraw the Directive altogether, segments of the population were outraged. In June 2025, the EU Commission assured everyone that the Directive wasn’t dead, just in negotiations. Now, after over a year of radio silence, the EU has withdrawn the Green Claims Directive, stating in Annex III to its 2027 Work Programme:

“The file has been pending with co-legislators more than three years. The Council failed to agree on a negotiating mandate in June 2024. Attempts by the Council presidency in 2025 to advance discussions did not succeed and the file is unlikely to secure support in the Council within a reasonable timeframe”

As much as I’m a sucker for a regulatory scheme that keeps everyone honest, this rescission may be for the best. The Directive Empowering Consumers for the Green Transition came online in September. Companies are still adjusting to that seismic shift in greenwashing regulation, and the EU is still issuing guidance on the law. The Green Claims Directive was ambitious, but possibly too ambitious. The labeling and verification requirements may have proven too much for both companies and regulators to handle. We may see the Green Claims Directive reintroduced in the future, or perhaps the core ideas will work their way into other legislation. For now, we can focus on catching up to the EU’s other greenwashing laws.

Our members can learn more about greenwashing regulation here.

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile