We have dedicated years to assisting organisations in their endeavours to achieve greater sustainability, not only in their operations but also in their communications. This has consistently been one of our most important messages: the significance of authenticity in your environmental claims. It is crucial to the future of the planet, to your brand and to your stakeholders.
So, when news broke that the European Commission had withdrawn its proposed Green Claims Directive, it landed as a real blow. Not an unexpected one, perhaps, but a blow, nonetheless.
What Was the Green Claims Directive?
The Green Claims Directive was proposed by the European Commission in March 2023. Its goal was simple in theory but ambitious in practice: to stamp out greenwashing by requiring companies to substantiate any environmental claims they make about their products or services. From vague marketing phrases like “eco-friendly” or “carbon neutral” to bolder declarations of environmental impact, all claims would have had to be:
- Based on recognised scientific evidence.
- Independently verified before use.
- Clearly and transparently communicated.
The proposal followed years of increasing consumer distrust. According to a 2020 European Commission study, over 50% of green claims made by companies were vague, misleading, or unsubstantiated. The directive aimed to bring clarity, restore trust, and create a level playing field for businesses truly committed to sustainability.
So, What Happened?
On 20 June 2025, the European Commission (Commission) announced its intention to withdraw the proposal for a Directive on Green Claims (the Green Claims Directive Proposal). The official reasoning cited concerns about overburdening SMEs and fears of excessive red tape. Roughly 30 million microenterprises operate within the EU, and critics of the directive argued that requiring formal substantiation and third-party validation would place an undue burden on these smaller players.
But the truth is, this decision doesn’t stand in isolation. It fits into a broader pattern we’re seeing across the EU: a slow but noticeable retreat from some of its more ambitious climate policies. This shift follows a series of industry-led lobbying efforts, rising political pressure and a wave of elections where economic concerns increasingly outweighed environmental ones.
To observers who’ve been tracking the evolution of global sustainability regulation, the EU’s reversal mirrors something we’ve already seen across the Atlantic. In recent months, the United States has moved away from binding federal sustainability measures in favour of voluntary guidelines and state-level initiatives. Europe, long viewed as the more progressive environmental actor, now seems to be drifting in a similar direction.
Why This Matters
To say this is disappointing would be an understatement. Climate science makes it abundantly clear: we need consistent, enforceable policies to promote meaningful action. When regulatory frameworks like the Green Claims Directive are shelved, it sends the wrong signal. It tells businesses that cutting corners on environmental integrity is, once again, a tolerable risk.
And that’s dangerous.
Not only does it allow greenwashing to persist unchecked, but it also punishes those who are doing the right thing. If a business invests time, money, and expertise in substantiating its environmental claims, it should be rewarded with consumer trust and market differentiation, not drowned out by competitors making unverified, and often misleading, assertions.
The UK: Steady on the Path
Fortunately, while the EU may be stepping back, the UK is standing firm.
The Competition and Markets Authority (CMA) has been tackling greenwashing in the UK since the release of its Green Claims Code in 2021. This code is built around six key principles designed to ensure that all environmental claims:
- Are truthful and accurate.
- Are clear and unambiguous.
- Do not omit or hide important information.
- Compare goods or services in a fair and meaningful way.
- Consider the full life cycle of the product.
- Are substantiated with credible evidence.
Unlike the shelved EU directive, the Green Claims Code is not just a voluntary guideline, it’s enforceable under UK consumer protection law. With the passing of the Digital Markets, Competition and Consumers Act 2024, the CMA has been given powerful new tools, including the ability to fine companies up to 10% of their global turnover for breaches related to misleading environmental claims.
In short: the UK is not backing down. If anything, it’s strengthening its regulatory posture on greenwashing while others are loosening theirs.
Leading by Example
This divergence presents an interesting opportunity for UK-based companies and other companies around the world who don’t want to follow the crowd. We at Tunley Environmental believe it is well worth seizing.
Now more than ever, businesses have the chance to lead by example. While others scale back their commitments and water down their standards, we can double down. The Green Claims Code is not solely a means of avoiding penalties or checking compliance boxes; it is a way of establishing the individual in a crowded marketplace and declare, "We are committed to sustainability." We are currently conducting research to support this assertion.
Consumers observe. Notice is taken by investors. The same is true for employees, regulators, and collaborators. Businesses that prioritise integrity in their environmental communications are cultivating a much more valuable asset than a temporary reputational boost: they are establishing enduring trust.
What We Advise Our Clients
We work with clients across sectors to ensure their sustainability claims are not only compliant but genuinely robust. In addition to assisting businesses in avoiding greenwashing, we also assist them in communicating their sustainability narrative in a manner that is scientifically sound, transparent, and legally compliant.
In light of the EU’s U-turn, we’re advising our clients to:
- Stay aligned with the Green Claims Code: It still sets the gold standard for environmental marketing claims.
- Prioritise verification: Whether you’re claiming carbon neutrality, net zero, or circular economy practices, those claims must be verifiable and evidenced.
- Embrace transparency: Be clear about methodologies, data sources, and limitations. Vagueness is where greenwashing thrives.
- Don’t follow the crowd: Just because others are pulling back doesn’t mean it’s the right move. Stick to the path of integrity.
The Bottom Line
The decision to abandon the Green Claims Directive may feel like a step backward and in many ways, it is. But it also creates space for leadership.
While the EU dithers, the UK can lead. While greenwashing becomes easier in some jurisdictions, responsible businesses can stand out more clearly by doing things the right way.
We know that businesses face a complex landscape, shifting regulations, economic pressures, evolving customer expectations. But we also know that real sustainability leadership isn’t defined by what others do. It’s defined by the standards you set, the values you hold, and the legacy you choose to leave.
We are here to assist you in maintaining your position. Breaking away from the trail of deregulation. Helping you create sustainable marketing, which is transparent, accountable and built to last.