Talk Green, Prove Green: a practical compliance checklist

The EU Empowering Consumers for the Green Transition Directive (Directive (EU) 2024/825) (the “ECGTD”) is now part of the consumer-law landscape for businesses operating in EU markets. The challenge is turning the legal rules into practical decisions about claims, labels, packaging, stock and contracts. 

In the first article in this series, “Talk Green, Prove Green: What the EU’s New Consumer Rules Mean for Business”, we explained the scope of the ECGTD, the principal new rules and why enforcement must be considered Member State by Member State. This second article focuses on the practical steps businesses should take, and how we can support you.

Practical Takeaways for Businesses

The key message from these updates to the EU’s consumer protection regime is that environmental claims are no longer simply a branding exercise. They are a legal compliance issue. To help mitigate risk, businesses should adopt practical measures such as:

1. Map the markets and routes to consumers

Start by identifying the Member States into which products are marketed or sold, and how the product reaches the consumer. Do not limit the exercise to direct-to-consumer sales. Consider distributors, retailers, marketplaces and other intermediaries, particularly where your business provides the product wording, packaging, label or sustainability messaging that will be shown to consumers.

Because national implementation and enforcement can vary, keep the local framework for priority markets under review and obtain local advice where a jurisdiction-specific compliance assessment is required.

2. Audit every consumer-facing claim

Create an inventory of environmental and sustainability claims across product names, brand names, packaging, labels, websites, e-commerce listings, advertising, social media and point-of-sale materials. Include claims embedded in images, logos and certification marks, not just written copy.

For each claim, record where it appears, the product or activity it concerns, the intended audience, the market in which it is used, and the evidence relied on.

3. Replace generic language with specific information

Ask whether each claim tells the consumer exactly what the environmental benefit is. Words such as “green”, “eco-friendly” or “sustainable” may be generic environmental claims. Unless recognised excellent environmental performance relevant to the claim can be demonstrated, qualify the statement in the same place so that the specific benefit is clear.

A qualification should be prominent and understandable, not hidden in a footnote or behind a link. It must also match the evidence. If the benefit relates only to the packaging, one component or one stage of the lifecycle, the claim should not imply that the whole product or business has that benefit.

4. Check the evidence before publishing

Claims should be supported by robust, objective and verifiable evidence before they are used. Check the evidence is current, relates to the same product and market, covers the full scope of the wording and can be produced promptly if challenged. 

Keep an audit trail showing the evidence reviewed, the assumptions and limitations, who approved the claim and when it will be revisited. Marketing, legal, sustainability and product teams should understand who owns each step.

5. Review labels and logos

Identify every trust mark, quality mark, certification logo and in-house badge that relates to environmental or social credentials. Confirm who established the label, whether it is based on a qualifying certification scheme or public-authority scheme, what standards apply and whether the product is entitled to use it in the form shown.

This review should include labels added by suppliers where downstream retailers may present them to EU consumers.

6. Examine offsetting and future claims

Remove product-level claims of neutral, reduced or positive greenhouse gas impact where the asserted outcome is based on offsetting. Separately review forward-looking statements such as “net zero by 2030”. Check whether the commitments, implementation plan, measurable targets, resource allocation and independent verification meet the applicable requirements. 

7. Deal with stock and digital content

Review products, packaging and marketing materials already in circulation as well as new campaigns. Identify what can be relabelled, stickered, corrected at the point of sale or updated digitally. Record the options considered, operational constraints and steps taken. Businesses should not assume that old stock is automatically exempt. The Consumer Protection Cooperation Network has published a non-binding Common Understanding on old stock situations describing how national authorities may approach enforcement.

8. Review contracts and the supply chain

Environmental claims often depend on information supplied by manufacturers, suppliers, certification bodies, distributors and retailers. Contracts should clearly allocate responsibility for approving claims, supplying and retaining evidence, notifying changes, correcting materials and dealing with investigations or complaints.

Review relevant warranties, indemnities, audit rights, information obligations and change-control mechanisms. The drafting should reflect who controls the claim and who has access to the evidence needed to defend it.

Four questions to ask yourself before making an environmental claim

1. Is the claim specific?

Generic statements are now significantly riskier. Businesses should avoid broad environmental messaging that cannot be objectively verified.

2. Can the claim be substantiated?

Claims should be supported by robust, objective and verifiable evidence. Businesses should assume that regulators, competitors or consumer groups may ask to see that evidence.

3. Does the claim accurately reflect the environmental benefit?

A business should not present an entire product, collection or business as sustainable where the environmental benefit relates only to a specific feature, component or activity.

4. Would the claim withstand regulatory scrutiny?

Organisations should consider whether they would be comfortable defending the claim before a regulator, court or competitor challenge.

Businesses should also ensure they maintain clear records of supporting evidence, decision-making processes and compliance efforts.

How we can help – got a sustainability story worth telling?

We can help you to present your business’s sustainability credentials in a compliant matter, supporting you to share with your customers and clients the positive impact your business is making. This can include:

• Reviewing environmental and sustainability claims used in advertising, packaging and online content;
• Assessing compliance with the ECGTD and other evolving EU consumer protection requirements;
• Advising on greenwashing risk and regulatory investigations;
• Updating consumer terms, website content and marketing materials;
• Designing internal approval and governance processes for environmental claims; and
• Delivering practical training for legal, compliance and marketing teams.

We work with many organisations that are tackling environmental and social challenges through innovative products, services and business models. We want those organisations to be able to tell the world about the positive impact they are having. Our role is to help clients communicate their sustainability story with confidence, ensuring that genuine environmental achievements can be promoted in a way that is clear, credible and compliant. In doing so, we help clients avoid both greenwashing and unnecessary greenhushing.

We can help businesses understand how these developments may affect their environmental claims, marketing practices and contractual arrangements, particularly where UK businesses sell to or market products in the EU. We can draw on our relationships with firms in the Parlex network and the Global Alliance of Impact Lawyers to connect clients with appropriate local advisers and help ensure that jurisdiction-specific advice fits into their broader compliance approach.

If you would like to discuss how the new rules may affect your organisation, please contact Richard Marke, Oliver Scutt or Laura Scott.

We advise organisations at the forefront of sustainability and the circular economy, from reusable packaging and resource recovery to responsible supply chains and environmental data. Our Corporate and Commercial team helps clients navigate the contracts, collaborations, governance and regulatory issues involved in bringing innovative sustainable models to life.

The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice on which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please contact the Bates Wells team if you require further information.