We read the new EU greenwashing legislation. Here’s what you need to know.

Even though New Zealand feels far from Europe, these new EU regulations may still affect your business. Small online retailers, tech companies, health and beauty brands, and software providers can all be impacted, not just your classic large exporters such as meat or wine.

What are the new rules?

The “Empowering Consumers for the Green Transition Directive” (ECGT or EmpCo) is designed to stamp out greenwashing and demands credible proof for any sustainability claims in your marketing. If your product or service reaches EU consumers, even just a handful, these rules apply to you.

The ECGT means you can’t describe your product as “eco-friendly” or “carbon neutral” without credible proof — like independently verified data, not just your own statements or offset purchases. Using unverified sustainability badges or vague claims could cost you: non-compliance can lead to fines or even losing access to the EU market altogether.

How do I know if I’m affected?

The rule applies to any business selling directly to end consumers in the EU. Currently, it does not cover business-to-business sales. However, if your products ultimately reach EU consumers, such as through a wholesaler or distributor, you are still in scope and must comply.

Do any of these apply to you?

• Describing your product or service as “environmentally friendly” or “eco”
• Marketing your brand as ethical, or contributing to social initiatives / animal welfare
• Describing your product as recyclable, durable, or repairable without the evidence to back it up
• Stating that you are carbon neutral or net zero
• Using an internally created sustainability badge
• Sharing a net zero target

As you can see, it’s easy to break these rules accidentally. Many New Zealand businesses rely on our clean, green image and may not realise that their marketing could cause problems.

What can I do about it?

To help you stay compliant, here are a few simple steps you can take:

• Review your product descriptions and marketing materials for environmental claims. Make sure any claims like "eco-friendly" or "carbon neutral" are backed by reliable evidence.
• Collect verifiable data about your carbon emissions, and have that checked by an independent party
• Ensure you’re tracking your targets properly and can evidence your progress
• Ask suppliers or third-party certifiers for documentation on your supply chain’s environmental impact, and keep these records handy.
• When in doubt, run your claims past a compliance advisor or expert familiar with EU standards.

What evidence do I need?

You need to be able to demonstrate third-party verification of your claims by a qualified person or organisation, against global verification standards such as ISO 14024.

For environmental or carbon-neutral claims, you need to ensure that you have captured high-quality data and had it checked by an independent party. If you’re publishing targets (and good on you if you are), make sure you have a detailed implementation plan and third-party monitoring.

CarbonTrail can help with data capture, initiative monitoring and publishing data in line with this standard. We can also connect you to great local auditors who can provide third-party verification of your claims. Reach out if you would like to discuss your options. Contact us to learn more.