What’s Happening with Green Claims and How Does It Affect Corporate Sustainability Communication?

The European Commission’s proposed Green Claims Directive, aimed at combating misleading environmental claims, was in the final stages of negotiation when the Commission unexpectedly announced its intention to withdraw the proposal. This came after pressure from the conservative EPP party group. As a result, the Council of Ministers canceled the final trilogue negotiation that was scheduled for June 23. Elin Engkvist and Rebecka Hovenberg from 2050 describe what this means for companies in Sweden.

The announcement of the directive’s withdrawal sparked widespread criticism. The Commission has since clarified that the proposal has not been formally withdrawn, but negotiations have not resumed. There are indications that the Danish presidency plans to continue negotiations with the goal of reaching a new Council agreement and resuming trilogues, but no meeting dates appear to have been set yet.

Other Legislation Against Greenwashing Already in Place
At the same time, other legislation under the Green Deal is already in place to address greenwashing. In February 2024, the Empowering Consumers for the Green Transition Directive (ECGT Directive) was adopted and will take effect in Sweden in fall 2026. It bans general environmental claims without verifiable evidence, requires transparency around companies’ future environmental goals, and tightens rules for comparative environmental claims. This directive updates the EU’s regulatory framework and strengthens consumer protection against misleading sustainability communication.

The ECGT Directive already prohibits vague expressions without substance – general terms like “eco-friendly”, “green”, or “sustainable” may not be used unless the company can prove exceptionally strong environmental performance, for example through an official eco-label. Broad claims like “sustainable business” or “responsible / climate-smart” are considered misleading because they cover many aspects and will therefore be banned under the upcoming consumer rules. Claims about offsetting emissions from a company’s own products will also be prohibited. Although similar provisions already exist in the Marketing Act (Marknadsföringslagen), the implementation of the new directive represents a tightening of the rules.

What Should Companies Do Now?
The pause of the Green Claims Directive does not mean companies can continue sustainability communication as before. On the contrary. In addition to consumers lacking trust in sweeping and general claims, the legal and normative framework continues to tighten. Besides the ECGT Directive, which strengthens the current rules, “best practices” are continuously evolving due to initiatives like Science Based Targets, the GHG Protocol, ISO 14021, and CSRD. Now is a good time to review your marketing communication and ensure it is both engaging and aligned with regulations and expectations.

What Are the Benefits of Credible Sustainability Communication?
The way forward for companies is to focus on engaging, factual, and well-substantiated claims that build trust in the brand. This is increasingly important at a time when 85% of Europeans believe climate action should be prioritized, and 58% think companies have a crucial responsibility in the climate transition¹. Credible and transparent communication also drives internal mobilization, engagement, and direction.

So How Do You Do It?
The “how” can feel tricky, so here are a few tips:

1) Anchor in Values and Audiences
Start with what matters to your stakeholders and build communication on values you can stand firmly behind – being grounded and close to your stakeholders in uncertain times builds trust. Ensure your communication aligns with your actual sustainability work to avoid over- or under-communicating.

2) Follow Key Regulations
Ensure all messages meet the requirements of ECGT, CSRD, and SBTi (ISO 14021 and GHG Protocol). Review all claims and labels.

3) Be Concrete and Transparent
Share what you’ve actually done and what remains – “we’re on our way” communication builds more trust than only showing finished results.

4) Avoid Polarization – Contribute to Solutions
Focus on solution and progress, even in difficult areas. Avoid phrasing that unnecessarily divides your audience.

5) Back Everything with Evidence and Sources
Provide methods, data, and sources for claims. Report offsets separately from emission reductions.

6) Create Synergies
Link sustainability messages to quality, value, resilience, or innovation – “sustainable” should not only be right, but also smart.

[1] Climate change – June 2025 – – Eurobarometer survey