Today threats arising from environmental problems bring about an increased sensitivity at the global level. In this period, where production, consumption, and investment decisions are reshaped in line with environmental sensitivities, the number
and the variety of labels and reporting initiatives regarding the environmental performance of businesses and products have increased. There is also an observed increase in
‘greenwashing’ practices, where businesses deliberately give a deceptive impression about their environmental impacts or benefits. In line with its transition to a green and
circular economy objective, The European Union (EU) has announced several interrelated initiatives under the European Green Deal and the 2020 Circular Economy Action Plan.
The ‘Initiative on Substantiating Green Claims’ aims to ensure that information regarding the environmental performance of businesses and products are reliable, comparable,
and verifiable across the EU, while it also aims to prevent deceptive claims. The latest development in this area has been the proposal to introduce new consumer rights and a ban on greenwashing in the new circular economy package announced by the Commission on 30 March 2022. Examining the
scope and possible effects of the initiative launched by the EU, this study evaluates the role of the fight against greenwashing, which will be strengthened by this initiative, in ensuring green transition and sustainability.
The ‘Initiative on Substantiating Green Claims’ aims to ensure that
information regarding the environmental performance of businesses and products are reliable, comparable, and verifiable across the EU, while it also aims to deal with deceptive claims and greenwashing practices. Providing reliable information on environmental impacts is crucial under the scope of the new EU legislation such as the EU Taxonomy Regulation as well. Hence,
the use of standard methodologies for environmental footprint calculations stands out more. As of 30 March 2022, the latest development has been the announcement of a new circular economy package by the Commission, which puts ‘sustainable products’ in the center. Through this package, the Commission
also tabled a legislative proposal to empower consumers in the green transition, which introduces targeted amendments to horizontal EU consumer law to provide enhanced protection against greenwashing practices along with better information on product durability and repairability. Moreover, the environmental
impacts and sustainability features of products along the value chains would be provided in digital product passports within the scope of the ‘Sustainable Product Policy Initiative’. In addition, the Commission is working on proposing more specific rules on green claims relying on the product and organization’s environmental footprint methods, with adoption planned in autumn 2022.
It is desired that consumers remain active proponents of this green transition in the EU, and all these rules are envisaged to prevent deceptive information and greenwashing. As misleading and vague claims are prohibited, more reliable and truly eco-friendly products and businesses will come to the fore instead of products and businesses ‘acting as if green’. Conscious consumers will be able to choose products that are really better in terms of environmental performance and impacts; products with longer life and non-toxic features; products that consume less energy, create less waste, and products that are more recyclable. Similarly, investments would be directed to the right businesses, and so green businesses will have a competitive advantage. Hence, through these efforts, an impetus is expected for green transition. On the other hand, no matter how environmental-friendly the products are, if the industry continues to grow in terms of investment and consumption, this time through the promotion of the green products, environmental pressure will continue in the long run and the impact of these efforts will be limited in terms of sustainability. To sum up, while the Initiative on Substantiating Green Claims is promising in terms of transforming consumption patterns in a more sustainable direction, it is crucial that the rate of production and consumption must be slowed down for sustainability; otherwise, a vicious circle will continue under the ‘green’ image of the system, in which economic sustainability overtakes environmental sustainability.