As it became known a few days ago, the European consumer protection authority has held the Berlin online fashion retailer Zalando accountable for misleading information on the subject of sustainability. The company was targeted under the coordination of the European Commission and with the involvement of national consumer protection authorities. This is part of a wider action against misleading information, particularly regarding sustainability, in line with EU fair trade rules. Zalando then committed to providing consumers with clear information and removing misleading sustainability labels and symbols from its online shop.
Against this background, FashionUnited asked Judith Bussé, a lawyer specializing in Environmental, Social & Governance (ESG) law and owner of the Brussels law firm Pivot Law, four questions on the topic Greenwashing as well as new laws and regulations on sustainability.
While there is no single definition, the term greenwashing refers to misleading practices by companies or organizations that present themselves as being more environmentally friendly or sustainable than they actually are. This serves to improve the image and increase sales of products and services.
The term greenwashing is not new – it was coined in 1986 – and is appearing more and more frequently. With consumers’ growing interest in more environmentally friendly products, the number of cases of greenwashing has also increased in recent years.
A 2020 European Commission survey found that over 53 percent of environmental claims in the EU were vague, misleading or unfounded.
Greenwashing is not always done intentionally or with malicious intentions. Sometimes it can arise from enthusiasm or lack of expertise.
Greenwashing is undoubtedly harmful. It affects businesses and consumers and stands in the way of the transition to a more sustainable society and future.
Will inaccurate and unfounded sustainability claims soon come to an end? Finally, more and more clothing companies are being held accountable for their misleading claims.
Unfortunately, this end is not yet in sight, but stricter enforcement of existing rules on misleading information is already a step in the right direction. The fact that large companies are once again being held accountable by both national and European authorities, the European Commission and the Consumer Protection Network, shows that consumer protection authorities are taking this issue increasingly seriously.
Better enforcement also means increasingly clear interpretation of what is allowed and what is not. As more precedents are set in the marketplace, vague and unfounded claims about sustainability will be less likely to be made. New regulations will also play an important role.
However, it is an illusion to believe that greenwashing will soon end. Some companies do not have the knowledge or resources to inspect the entire production process. They often rely on the information they receive from their suppliers. In addition, science is developing every day and giving us more and more insight into the effects of certain products and production processes.
What about future laws and regulations that are intended to further curb greenwashing?
Two important European directives are currently being prepared. The first is a directive that aims to guarantee European consumers better information and protection against unfair practices so that they can make informed purchasing decisions that promote sustainable consumption. The final text of this directive was adopted by the Council on 20 February after the first reading in the European Parliament. After signing, EU member states have two years to transpose the directive into national law.
On the other hand, there is the so-called ‘Green Claims’ guideline for the justification, validation and communication of sustainability claims. The text of this proposal still needs to be finally adopted by the European Parliament in a plenary session expected to take place in March. The proposal includes rules for how companies can validate their environmental claims, as well as tougher penalties for companies that break the rules.
There are also a number of other instruments such as the Ecodesign Regulation, which is also in its final stages and is due to be adopted this year. The adoption of the proposal on the right to repair or repair is also expected in 2024.
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How can fashion companies best prepare for future laws and policies?
The best preparation now is to collect information about the materials and production processes used. Fashion companies are expected to be able to accurately substantiate all sustainability claims in the future. Of course, this requires objective and verified information, and it is never too early to collect it.
Of course, fashion companies should already be stopped from disseminating misleading or vague information or making unfounded claims about sustainability.
My motto is to educate marketing, content and design teams now about the do’s and don’ts of sustainability. With a clear framework and a sustainable, future-oriented vision supported by your company, you can go very far.
How and what should consumers pay attention to now? Can you trust the green claims of the big retail chains and internet giants?
Consumers can also make their contribution to ecological change.
When consumers come across a sustainability claim, they should take the time to research it more closely. Do not rely solely on claims made on packaging or in advertising, especially if they are particularly vague, such as ‘environmentally friendly’ or ‘environmentally conscious’ without further information. Look for independent sources, concrete evidence or numbers behind the claim, or labels that certify a product’s sustainability.
If you can’t find additional sources right away, ask the company for evidence of the sustainability claims. In principle, companies should be able to transparently explain how they verified their information and what criteria they used.
Compare the contributions of different brands and products. This can also provide additional information. Pay attention to the origin of the materials, the production processes used, the quality and the lifespan of the product in order to be able to assess the sustainability claim. Favor companies that are transparent about their sustainability efforts.
If you are confronted with misleading information, you can always contact the national consumer protection authority to report such greenwashing practices.
This interview was conducted in writing.
This article originally appeared on FashionUnited.nl. Translated and edited by Heide Halama.