Published - 12 Dec 2024
Forest Industry
Thought for the day: The EU’s anti-greenwash directive - Will greensquashing follow greenwashing? We hope not
In March the EU introduced new rules to ‘empower consumers for the green transition’. Among other aims, the Directive seeks to forbid vague environmental claims, stating that “companies will no longer be able to declare that they are ‘green’ or ‘environmentally friendly’ if they cannot demonstrate that they are”. Displaying unreliable voluntary sustainability logos will also be forbidden. EU countries are required to transpose the Directive into their national law by March 2026 and the rules are currently set to apply from September 2026. In parallel, the Green Claims Directive aims to ensure that companies substantiate any green claims or labels they use.
We have commented in previous issues about the danger of too many unfounded green labels eroding trust and confusing the consumer. In principle, providing a better framework for the various eco-labels which have flooded the market in recent years is a positive, but as is often the case, companies will need to navigate their way through the legislation with care and strategic planning.
After greenwashing and greenhushing, ‘green squashing’ is the new buzzword among marketers. According to a study by the Chartered Institute of Marketing (CIM) in the UK, marketers are increasingly conscious of the risks of their business being accused of greenwashing or greenhushing, leading to a reduction in environmental values and commitments.
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Will brands start to retreat from sustainability commitments as well as sustainability communication for fear of being penalised? If so, is this an opportunity for the forest industry to shout a little louder (providing its own green credentials are in order)? Let’s hope so. Companies will need to tread carefully, communicating their sustainability message and helping consumers to make conscious sustainable decisions, while ensuring they can back up any sustainability claims. They should resist the temptation to retreat.
If the Directive achieves its aims and consumers understand ESG information more clearly as a result, the public should be empowered to make better decisions for the environment. If the forest industry capitalises on telling its own story accurately and effectively, there should be no reason not to see this as a positive. Clear, accurate, relevant messaging will be important. And the best place to start before deciding on the message? Understand who you’re talking to.