The EU’s Green Claims Directive might be on ice, but don’t fall foul of this anti-greenwashing rule

• Token gestures, such as promoting one ‘green’ feature, while ignoring other (more important) environmental issues
• Lack of specifics, like the purposeful use of broad or poor definitions
• Lack of evidence to back up a claim
• The use of green images or buzzwords like ‘eco-friendly,’ which do not have standard definitions
• Redundant claims, like claiming ‘vegan’ if a product would be anyway
• Claiming to be on track to reduce a company’s polluting emissions to net zero when no credible plan is in place

Authorities globally are cracking-down on the above are practices. In the UK, under the Digital Markets, Competition and Consumers Act (DMCCA), the UK Competition & Markets Authority (CMA) can now directly fine firms up to 10% of global turnover for misleading environmental claims. Meanwhile, California’s Voluntary Carbon Market Disclosures Act (VCMDA), also known as AB 1305, requires entities making net zero emissions and/or carbon neutrality claims to or disclose additional information on their website.

A global leader in combating corporate greenwashing is South Korea. Not only is the Korea Sustainability Standards Board (KSSB) poised to bring mandatory Environmental, Social, and Governance (ESG) reporting to its largest publicly listed companies, the country’s Fair Trade Commission (KFTC) has already taken action against several companies for greenwashing, issuing warnings and a corrective order due to misleading consumer-facing green claims.

For European countries, however, the European Union (EU’s) green claims rules pipeline has hit something of a snag. The EU’s Green Claims Directive (GCD) forms part of the European Green Deal and aims to set standards for companies to substantiate their environmental claims. But progress was put on hold last summer. While the GCD has not yet been officially withdrawn, it is currently languishing in review stage with no new timeline laid out.

The directive was first proposed in March 2023; approved by the EU Parliament in February 2024; and confirmed in plenary in March 2024. Negotiations on the final text of the draft law started in January 2025 and had been expected to conclude on June 23, 2025, during a meeting that was ultimately cancelled. At the time, climate activists described the GCD’s stalling as ‘a blow,’ viewing the move as a prioritization of economic concerns over ambitious climate policies. Progress will depend on the exclusion of micro-enterprises from the law’s scope, with the European Commission (EC) indicating it would withdraw the proposal if companies with fewer than 10 employees and making under €2 million in annual revenue were included.

However, cosmetics companies should be aware that the GCD’s ‘sister directive,’ the Empowering Consumers for the Green Transition Directive, known as EmpCo, is still very much in the pipeline and is expected to become binding in EU member states from September 2026.

The GCD aims to establish a new regulatory regime for unfair practices in the green claims area and, in the event of it being implemented, businesses’ environmental claims will have to be backed by scientific, lifecycle-based assessments, which must be specific and clear. Before publication, claims and labelling systems will have to be verified by accredited and independent verification bodies; and regulated environmental labels will have to adhere to clear criteria. While the GCD focuses on scientific substantiation and third-party verification, EmpCo targets B2C communication and strengthens consumer protection.

EmpCo received approval on February 28, 2024; came into force on March 6, 2024; and will apply from September 27, 2026. It amends the EU’s Unfair Commercial Practices Directive (UCPD) and adds certain forms of unacceptable advertising involving green claims to Annex I of the UCPD. These include:

• Based on the offsetting of greenhouse gas emissions, claiming that a product has a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions
• Making generic environmental claims for which the trader is unable to demonstrate recognized excellent environmental performance relevant to the claim
• Claims in relation to future environmental performance are only permitted if they contain clear, objective, publicly available and verifiable commitments set out in detailed and realistic implementation plans
• Displaying sustainability labels that are not based on a certification scheme or are not established by public authorities.

EmpCo applies to all companies with B2C business models, regardless of industry or size. And beauty brands are advised to review all existing communications relating to sustainability and the environment, including advertising claims, product descriptions, packaging, and online presence. At the same time, companies should ensure that they have appropriate evidence for any green claims they make.

This is where Coptis’ Product Lifecycle Management (PLM) software is invaluable. Coptis Lab offers full traceability of all development stages, so every decision, modification, or validation is recorded and can be consulted at any time. Companies can speedily access requested information, such as certificates of compliance or test results. PLM software can also flag-up non-compliance issues, letting companies anticipate and quickly adapt to regulatory changes.

Coptis has been supporting professionals in the cosmetics industry for more than 27 years. To find out what our PLM software can do for your business, contact the Coptis team to request a demo.