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Substantiating Environmental Claims

EU rules are tightening on what a brand may say about a product. Which claims now need evidence, which are banned outright, and what counts as substantiation.

CirculeID Research6 min read1,275 words

EU consumer protection rules now ban generic environmental claims that cannot be demonstrated, prohibit claims based solely on offsetting, and require sustainability labels to rest on certification schemes. Substantiation means evidence a third party could check, not an internal conviction that the claim is fair.

What this gives you

The evidence a green claim needs to survive the Green Claims Directive, which common claims now fail, and how passport data substantiates the ones worth making.

Key takeaways

  • Generic claims such as environmentally friendly are prohibited unless recognised excellent performance can be demonstrated.
  • Claims that a product is carbon neutral based on offsetting are specifically banned.
  • A sustainability label must rest on a certification scheme or be established by a public authority.
  • A passport increases exposure where claims are weak, because it makes them machine-readable and comparable.

For most of the last decade the constraint on environmental marketing was reputational. A claim that could not be defended attracted criticism rather than enforcement, and the calculation many brands made reflected that.

Directive (EU) 2024/825, amending the consumer protection framework, changes the calculation by making specific practices unfair commercial practices in their own right. The effect is that certain claims are no longer weak; they are prohibited.

What is banned outright

The directive adds several practices to the list that are unfair in all circumstances, meaning no case-by-case assessment of whether consumers were actually misled is required.

Environmental marketing practices and their status under the amended rules
PracticeStatusWhy
Generic claim with no demonstrated performanceProhibitedUnverifiable by the consumer
Carbon neutral based on offsettingProhibitedThe product itself is not neutral
Claim about the whole product based on one partProhibitedMisleads about overall impact
Presenting legal requirements as a distinctive featureProhibitedNo differentiation exists
Sustainability label without a certification schemeProhibitedSelf-created marks imply assurance
Specific, evidenced claim about a real attributePermittedVerifiable and bounded
Environmental marketing practices and their status under the amended rules

The second row has the widest commercial consequence. Offset-based neutrality claims were common, sat on established voluntary market infrastructure, and are now specifically named. Companies with such claims in market need a different formulation rather than better offsets.

What substantiation actually means

Substantiation is frequently read as being able to explain a claim if asked. That is not the standard. It means evidence that somebody outside the company could examine and reach the same conclusion.

  • A stated method. Which standard or calculation rule produced the figure, named rather than implied.
  • A defined boundary. What is included and excluded, since a claim about part of a life cycle is not a claim about the product.
  • Identifiable evidence. Test reports, supplier declarations or certificates that exist and can be produced.
  • A named asserting party. Whether the brand or a third party made the assertion, because the two carry different weight.

Why a passport raises the stakes

A passport makes claims machine-readable, comparable and permanent. Each of those properties increases exposure where the underlying evidence is thin.

Machine-readable means an automated comparison across a category is possible, so an outlier figure stands out without anyone investigating. Comparable means a competitor with better evidence can demonstrate the difference. Permanent means a claim made today remains checkable years after the marketing campaign ended.

None of that is an argument against publishing. It is an argument for auditing existing claims against what the passport will disclose, before the two are visible side by side.

The audit worth doing first

Most companies preparing a passport discover that their marketing claims and their product data were assembled by different teams to different standards, and have never been compared.

The middle two outcomes are where most existing claims land.

The third outcome is the most common and the most encouraging: the product genuinely performs as claimed and nobody assembled the file. That is a documentation exercise rather than a reformulation, and it is considerably cheaper to do before publication.

Who enforces this

Enforcement sits with national consumer protection authorities rather than with the market surveillance bodies that police product compliance, which means a passport data problem can produce two separate enforcement conversations with two different regulators.

Competitors are also a route. Unfair commercial practice rules are enforceable through national mechanisms that competitors and consumer organisations can invoke, and a rival with better evidence has both the means and the motive to test a claim that outperforms theirs without support.

That is worth weighing when deciding how aggressive a claim to make. The party most likely to check it is not a regulator conducting a sweep but a competitor who knows the category well enough to recognise a figure that cannot be right.

How to write a claim that holds

The pattern that survives scrutiny is narrow, quantified and attributed. It is less satisfying to write and considerably easier to defend.

Rather than an environmentally friendly jacket, a jacket whose outer fabric is 68 per cent recycled polyester by mass, certified under a named chain-of-custody scheme. The second says less, means something, and can be checked from the passport by anyone who wants to.

That is also the formulation that ages well. A specific evidenced claim remains true as rules tighten, whereas a general claim depends on an interpretation that is currently moving in one direction.

Frequently asked questions

Are generic environmental claims banned?

Generic claims such as environmentally friendly or green are prohibited where recognised excellent environmental performance relevant to the claim cannot be demonstrated. The prohibition applies without a case-by-case assessment of whether consumers were misled, which removes the argument that the claim was understood as puffery.

Can we still say a product is carbon neutral?

Not on the basis of offsetting. Claims that a product has neutral, reduced or positive environmental impact because emissions were offset are specifically prohibited. Claims about actual emissions reductions achieved in the product itself remain possible where they are evidenced and bounded.

What counts as substantiation?

Evidence somebody outside the company could examine and reach the same conclusion from: a named method, a defined boundary, identifiable test reports or certificates, and a named asserting party. Being able to explain the reasoning internally is not the standard the rules apply.

Can we use our own sustainability label?

Not unless it rests on a certification scheme or was established by a public authority. Self-created marks are prohibited because they imply third-party assurance that does not exist, and this applies regardless of how rigorous the underlying internal process actually is.

Does a passport increase our greenwashing risk?

It increases exposure where the evidence is weak and reduces it where each attribute names its method and its issuer. Machine-readable claims can be compared automatically across a whole category, so an unsupported outlier becomes visible without anyone having to investigate your product specifically.

What should we do about claims already in market?

Audit them against what the passport will publish, before the two appear side by side. Most fall into a category where the product genuinely performs as claimed but the evidence was never assembled, which is a documentation exercise rather than a reformulation.

Is a claim about packaging a claim about the product?

It is treated as one where presented generally, and that specific pattern is prohibited. Describing a product as recyclable when only its packaging is misleads about overall impact, so the claim has to be attached explicitly to the component it actually describes.

Sources

  1. Directive (EU) 2024/825 on empowering consumers for the green transitionEUR-Lex, European Union, 2024-02
  2. Regulation (EU) 2024/1781 establishing a framework for ecodesign requirementsEUR-Lex, European Union, 2024-06

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