Greenwashing
Unfair commercial practice consisting of communicating environmental characteristics in a false, exaggerated or unverifiable manner. Prohibited by the ECGT Directive (EU) 2024/825.
Context
Greenwashing is the unfair commercial practice consisting of communicating the environmental or sustainability characteristics of a product, service or company in a false, exaggerated or unverifiable manner. Prohibited by the ECGT Directive (EU) 2024/825.
Regulatory origin
Canonical amendment of Directives 2005/29/EC (unfair commercial practices) and 2011/83/EU (consumer rights) introduced by the ECGT Directive (EU) 2024/825 published in the OJEU L 6.3.2024.
Prohibited forms of greenwashing
Generic environmental claim ("eco", "green", "sustainable") without methodology or certification.
Sustainability label without a certification scheme verifiable by a third party.
Recognised excellent environmental performance without substance.
Climate-neutrality claims based solely on offsetting.
Claims about the whole product when they only concern one component.
Durability/reparability claims without a verifiable commercial guarantee.
Timeline
ECGT published
Directive (EU) 2024/825 codifies the prohibition of greenwashing.
Transposition deadline
Member States transpose into national law.
Effective application
Greenwashing practices become punishable as unfair practices.
Applied case
A textile brand audits its catalogue and marketing communication to eliminate greenwashing before ECGT.
Identifies 47 environmental claims in its catalogue · audits each against ECGT criteria.
Removes the "the most sustainable" claim without a comparative study · replaces it with a factual description of achievements.
Internal policy: any new environmental claim requires legal + technical validation before publication.
Common mistakes
Not every environmental claim is greenwashing.
A claim backed by a verified LCA, recognised certification and honest communication about limitations is legitimate. Greenwashing is the unsubstantiated claim or the one with a relevant omission.
Offsetting emissions does not automatically equate to greenwashing.
Offsetting is legitimate when it is accompanied by demonstrated real reduction. Offsetting as a substitute for reduction is what the ECGT prohibits.
A B Corp company is not exempt from the risk of greenwashing.
B Corp certification evaluates the company as a whole. Each product or collection claim remains assessable independently.
Greenwashing is not only a problem of external communication.
There is internal greenwashing (presenting unsupported objectives to investors or the team) and procurement greenwashing (asking suppliers for claims that the brand itself does not verify).
Frequently asked questions
What is greenwashing?
Unfair commercial practice consisting of communicating the environmental or sustainability characteristics of a product, service or company in a false, exaggerated or unverifiable manner. Prohibited by the ECGT Directive (EU 2024/825), which amends Directives 2005/29 and 2011/83 — commercial practices and consumer rights.
How is greenwashing penalised in the EU?
In accordance with Directive 2005/29 on unfair commercial practices as amended by ECGT: fines up to 4 per cent of annual EU turnover in coordinated cross-border cases (Reg. EU 2017/2394). In Spain (RDL 24/2021): fines up to EUR 1,000,000 + product withdrawal + publication of the penalty. Administrative precedents in 2024-2025 against large global brands in the retail/textile sector for unsubstantiated environmental claims.
How is greenwashing avoided under ECGT?
By complying with the Annex I prohibitive list of the Directive: (i) prohibited generic environmental claim ("green", "ecological"), (ii) prohibited sustainability label without a certification scheme, (iii) prohibited recognised excellent environmental performance without substance, (iv) prohibited offsetting-only claims without real reduction, (v) prohibited durability/reparability claims without a commercial guarantee.
What is the difference between greenwashing and a legitimate green claim?
A legitimate green claim: (i) substantiated with an explicit methodology (PEF, ISO 14040), (ii) clearly defined scope, (iii) baseline + concrete reduction with metrics, (iv) recognised certification or a published comparative study. Greenwashing: a claim without substance, exaggerated, generic or false. The boundary is VERIFIABILITY by an independent third party.
Which standards help avoid greenwashing?
To substantiate claims without falling into greenwashing: (i) PEFCR Apparel & Footwear v3.1 for standardised LCA, (ii) ISO 14021/14025/14040/14044 for types of environmental declarations, (iii) recognised certifications (EU Ecolabel, OEKO-TEX, GOTS, GRS, B Corp), (iv) published comparative studies with a replicable methodology.
Fuentes oficiales
- European Parliament · European Council · OJEU L of 13.3.202428 feb 2024directive
- European Commission2020-2024policy
- EUR-Lex · Publications Office of the European Union2024database
