I wrote on my blog back in 2023 that I think the silliest form of corporate communication is not to say anything for fear of greenwashing.
According to a Swiss study, 83% of the world's climate-conscious listed companies (= companies with > 1000 employees and has a dedicated Head of Sustainability or similar role, at a director level) have set themselves a net zero target, compared to only 8% of ordinary listed companies. However, almost one in five do not intend to make their targets public. Of the companies surveyed, 44% say that climate communication in general has become more difficult and most say they are actively reducing it.
In other words, there are still far too few companies in the world that have set credible, achievable and science-based climate targets, and most of those that have set targets do not share them for fear of scrutiny and backlash.
The fear of greenwashing has therefore led to an increase in greenhushing. This was hardly the aim of the EU Green Claims Directive. Indeed, sustainability communication has an important role: to influence, to raise awareness, to encourage, to stimulate debate, to take a stand for development, to present business from a slightly different perspective.
The Green Claims Directive was adopted in March this year and must be implemented nationally by September 2026. The Finnish Ministry of Justice is preparing amendments to the Consumer Protection Act which regulates marketing and customer relations.
This is what the Greenwashing Directive means
The EU will ban:
- generic environmental claims on products without proof
- claims that a product has a neutral, reduced or positive impact on the environment because the producer is offsetting emissions
- sustainability labels that are not based on approved certification schemes or established by public authorities
For example, the following environmental claims will no longer be allowed:
- environmentally friendly, ecological, sustainable, green, carbon neutral, energy efficient, biodegradable.
Furthermore, the Parliament wants to make sure that consumers are fully aware of the guarantee period during which consumers can request a repair of faulty products at the expense of the seller. Under EU law, products have a guarantee of minimum two years.
The EU will also ban:
- advertising goods that have design features that could reduce a product’s lifespan
- making unproven durability claims in terms of usage time or intensity under normal conditions
- presenting goods as repairable when they are not
It is good to note that while the law protects the consumer, B2B companies cannot turn a blind eye to this either. B2B companies that supply raw materials or components to B2C companies may have to provide more accurate and transparent information on the environmental impact of their products. This is particularly important as the manufacturer of the final product is responsible for ensuring that any claims it makes about its environmental credentials are true.
From obligation to opportunity: master sustainability in Marketing
The clock cannot be turned back, and non-communication is not the answer. Reform should be seen as a positive development – I firmly believe that forerunners will turn this to their advantage.
When communicators and marketers are aware of the law and observe due diligence, this also opens up a whole new world of opportunities. For B2B companies that invest in transparency and sustainability, the Directive offers an opportunity to differentiate and build a competitive advantage. On the other hand, those who do not comply with the new requirements may face a growing lack of confidence or even legal sanctions.
Telling consumers about environmental facts is also an opportunity to tell the whole company story, interact with a key stakeholder and build trust among consumers and other stakeholders.
Sustainability directives may increase costs, as new systems and resources are likely to be needed to monitor and report on environmental impacts. Therefore, it is worth making the most of these investments.
Now that the reporting directive (CSRD) has brought a large number of new companies into mandatory sustainability reporting in the past year, and sustainability is on the agenda of many management teams, may I suggest it is also a time for a new approach to sustainability communication and marketing?
Kirsi Nurmi
+358 45 271 9559
Chief People and Sustainability Officer
kirsi.nurmi@valve.fi
