Food and beverage producers need to act now to substantiate their environmental claims for a new European Commission directive, according to Leatherhead Food Research.
The directive, to be adopted by 2024 and applied at the end of 2026, aims to combat misleading environmental claims in EU markets and address concerns about “greenwashing” by setting out a set of detailed rules on how companies should market their environmental impact and performance.
In addition to the proposed Green Claims Directive, the UK’s Competition and Markets Authority (CMA) is already implementing its own Green Claims Code, which was announced in January this year.
Claims Code and announced in January 2023 that it would scrutinize consumer products, including food and drink, for potential environmental claims.
Regulatory minefield
Mariko Kubo, head of scientific and regulatory affairs at Leatherhead Food Research, warned that green claims are becoming a regulatory minefield and advised food manufacturers to take a cautious approach to avoid unintentional misleading.
“The rapid growth in the number of green claims and the corresponding impact on consumers is outpacing the development of clear rules for their use,” Kubo said. “Although the proposed Green Claims Directive aims to bring some harmony, there may still be differences between EU member states as directives are less stringent than regulations.
“Ultimately, companies need to be proactive by carefully reviewing and justifying green claims in case they are singled out by the authorities in the markets where they operate.”
Key steps
To this end, Leatherhead outlined three key steps companies should take to substantiate:
- Identify all claims about the product that could be construed as green, and then make sure they are specific and represent a real benefit.
- Claims should be tested for accuracy, truthfulness and clarity.
- Make sure all promotional materials – from labels and packaging to advertising – are truthful and not misleading.
Kubo suggested that companies familiarize themselves with the proposed Green Claims Directive, as well as ISO 14024 and ISO 14025 on environmental labeling and declarations. Companies selling food and beverages in the UK should also be aware of the best practices outlined in the CMA’s Green Claims Code and be mindful of potential governmental scrutiny.
“Sustainability is such an important issue that regulators are determined to take a tough approach to greenwashing, whether it is intentional or not,” she added. “Food and beverage companies need to make substantiating their claims a priority. Ensuring that they are coherent, specific and verifiable is a good start.”
Consumer attitudes towards green claims
Leatherhead recently conducted a survey in Denmark, France, Germany, Greece, Italy, Spain, Turkey and the UK to gauge consumer attitudes towards green claims.
Overall, 37% of adults in these countries say they have bought food products because they were labeled as environmentally friendly. Green claims also affect consumer loyalty and spending.
The study found that 34% of adults chose a different brand than usual because of green claims, and 30% chose a product that was environmentally friendly that cost more than alternatives perceived as less environmentally friendly.