The European Parliament set out to ban environmental claims about carbon neutrality based on carbon offsetting schemes. This has caused ripple implications for sustainability and marketing teams, especially their public-facing approach on how to reach ‘net zero’.
The closer scrutiny by both legislators and consumer watchdogs like the Advertising Standards Authority (ASA) on such claims has come at a time when the global crackdown on greenwashing is forcing brands to reevaluate their labelling and external communications. Recently, the utility of carbon offsetting when used as a tool to balance a business’s carbon footprint has become highly disputed. A recent Guardian investigation claimed that more than 90% of rainforest carbon offsets certified by Verra, a leader in carbon standards, had little impact. Gucci is amongst the high-profile companies now transitioning away from carbon-neutral messaging, having removed this from its website following the decision made by the European Parliament on May 11th. This runs alongside inquiries about the very existence and value proposition of ‘sustainable’ collections as retailers like H&M and Zara discontinue their Conscious and Join Life collections respectively.
The inspection of labels and advertisements peppered with carbon neutrality terminology is part of a wider effort to eliminate misleading environmental messaging across markets. The EU Green Claims Directive, proposed in March, will set out the EU’s first detailed rules on marketing environmental impact and performance. Notably – it states that common phrases such as ‘net zero’, ‘carbon neutral’ and ‘eco-friendly’ would be prohibited in advertisements, in social media posts or on packaging unless they were sufficiently substantiated and verified. Elsewhere, the U.S. Federal Trade Commission (FTC) is soon to update the Green Guides for the first time since 2012 following an extended period of public consultation.
Ken Pucker, senior lecturer at Tufts University whose work is focused on sustainability believes that “the French and EU anti-greenwashing and labelling laws will force companies to better align their aspirations and actions.”
The UK’s ASA released updated guidance on carbon-neutral claims in February 2023, drawing on key principles of the UK Competition and Market Authority’s Green Claims Code. The update outlined that businesses and brands must avoid using unqualified carbon-neutral claims and provide accurate information. They must also state the degree to which they are reducing carbon emissions or are basing claims on offsetting, to ensure that consumers do not wrongly assume that products or their manufacturers generate zero or few emissions.
