Be warned: New EU laws are coming-in to stop unfair and unproved “green”, “environmental” and “social” claims which will impact the events industry

It’s never been more popular for companies to claim that they, their products, or - perhaps most importantly – their events – are “green”, “environmentally friendly”, “climate neutral”, “sustainable”, help “save the planet”, or promote good social causes.

More and more there seems to be a growing awakening amongst artists, performers and others in the events industry of the bad record the industry has on carbon emissions – and a desire to turn things around.[1] Coldplay’s “Music of the Spheres World Tour 2024” website has a page devoted to “Tour Emissions Update”.[2]  Massive Attack – the 1990s megaband and godfathers of trip-hop – recently hosted a music event in the UK with the New York Times asking “Is This Massive Attack Concert the Gold Standard for a Green Gig?”[3]. Also, and in addition, there is an increasing barrage of claims displayed on products from food & food packaging products, even to buildings and venues – claiming green or sustainable credentials. They include statements on the purported recycled content, recyclability, climate neutrality[4] & carbon emissions, etc –to claims on biodiversity, ocean & ocean littering, fair treatment of workers and traders, and other issues. They also include the increasing array of different environmentally friendly logos and socially-conscious symbols and pictograms on products. 

But while intentions behind making green and social claims might be good – how true are the green and social claims themselves?  Are companies making these claims while exaggerating the truth and telling white lies to reel in paying customers?  Or, even worse, are companies simply all-out lying when making these types claims?

Welcome to the world of so-called “green-washing” and “social-washing”.  A scourge that even Greta Thunberg – an activist who can be difficult to pin down on specific, concrete policies that should be taken to stop climate change – is abundantly clear on.  And joining her in the fight against this menace – is now none other than the EU Institutions themselves. 

With Ursula von der Leyen and her previous Commission initially announcing plans to address greenwashing and social washing in the ‘New Consumer Agenda’ and the ‘Circular Economy Action Plan’ – the EU has now moved forward, and is now about to agree the final text of the so-called “Green Claims Directive”. This new EU Directive is expected to be adopted at the beginning of next year (2025). 

Any, by the way, the events industry should be warned:  These new laws are likely to have real teeth, with potentially significant penalties and – perhaps more importantly – a serious risk of facing major litigation, including collective redress actions and class action law suits, inside and outside of the EU – if companies fail to make sure the claims they make are not clear, can’t be backed-up, or are simply untrue. 

What is the new EU law coming-in regarding green claims? 

The EU Institutions are in the process of agreeing the so-called “Green Claim Directive” (“GCD”) – a set of rules which EU Member States will be required to transpose within the next couple of years.

What sales and business activities will the GCD cover?  

Although the wording on the scope of the Proposed GC Directive is yet to be agreed, the GCD will likely be broad in scope.  It would regulate certain ‘environmental claims’, meaning – any statement (written and oral) or imagery which gives the impression that: (1) a product or organisation has a positive or zero impact on the environment, (2) is less damaging to the environment than other similar products/organisation, or (3) has improved its impact over time.  In particular, the GCD would regulate environmental claims made voluntarily by traders in business-to-consumer commercial situations and which relate to a product, service or the trader itself.

What are the new rules under the GCD?

Before using explicit environmental claims, companies will be required to carry out an assessment to substantiate the claim.  The GCD sets out detailed rules on what the assessment must entail – including the science-based data needed to support the claim such as life-cycle assessments, environmental footprint assessments, and the need to use recognised EU or internationally recognised scientific approaches in measuring relevant issues such as environmental impacts – and not omit any relevant data. That information would generally need to be made publicly available in physical form or online including in relevant EU languages (i.e. perhaps not just in English!). In general, only claims based on the latest scientific evidence would be possible, meaning, amongst other things, that companies would be required to keep the substantiation and communication of claims up-to-date and revised at least every 5 years.    

Explicit environmental claims would need to be verified under certification schemes - before being made publicly available or displayed.  More specifically, an independent third-party accredited conformity assessment body which is not engaged in any activity that may conflict with their judgement or integrity - would need to verify the claim.  The verifier could indicate ways of how the company should communicate the environmental claim regarding compliance with the draft GCD.  Once the verifier has carried out the verification of the submitted claim, it would decide whether or not to issue a certificate of conformity. The certificate would then be recognised across the EU and shared between Member States via the Internal Market Information System.

Exceptions to the general GCD rules are likely to be limited and apply only to certain microenterprises – although microenterprises would remain able to obtain certificates of conformity should they wish to. 

Is there any other EU law regarding “green” or “social” claims I should be aware of?

Yes. Another EU Directive - the so-called “Empowering Consumers for the Green Transition” or ECGT Directive - was recently adopted.  The ECGT Directive is essentially a ‘twin’ Directive – and, together with the GCD – these two Directives will, in the future, establish the core regulatory regime regulating green and social claims in the EU.  The ECGT is particularly important, as it essentially bans and prohibits certain forms of greenwashing and social-washing.  On top of these Directives, there are a multitude of other EU law (including standards – such as ISO standards) and laws on labelling and other issues to be aware of.  In certain EU Member States – there is also substantial national law too. 

What should companies in the events industry do now?

1. Take green and social claims seriously. Penalties for making inaccurate, false or deceitful claims will likely be severe. But it is the litigation risk – from persons individually or in collective groups – which is likely to be of particular concern.  That is not to mention other issues such as, for example, reputational harm if claims are exposed as illegal, and the potential for EU enforcement agencies to take down websites.
2. Make sure you know how to spot potentially dangerous green and social claims being made in relation to your company, your products and/or your services (NB even oral claims and images can constitute green and social claims under EU law – so spotting these claims includes looking at who is making green and social claims orally inside, or perhaps outside, your business).
3. Remove all so-called “blacklisted” green and social claims – which are specifically prohibited under EU law (particularly the ECGT Directive) from all websites and communication documents asap.
4. Have policies in place to ensure only certain people are legally authorized to make claims regarding your products and services (with disclaimers in place to exclude and limit liability for unauthorized claims).
5. And make sure you have the scientific-based data required under EU law – to back-up green and social claims. Claims need to be both verifiable and verified – in accordance with the law.
6. And, last but not least – perhaps get some legal advice. I realise this sounds self-serving (I am a lawyer). But, in this case, prevention honestly is likely better than a cure.