Last week, the European Union opened an inquiry into what are possibly misleading greenwashing claims by some airlines. These practices include claims that fuel emissions are offset by initiatives focused on sustainability. While the airlines haven’t been listed, the regulators involved are Spanish, Norwegian, Dutch and Belgian.
The European Union has given the airlines involved a 30-day deadline to present evidence that the claims made in their ads aren’t misleading. The objective is to put an end to the growing trend of companies promoting their business, services and/or products as more environmentally friendly than is factually true.
Regulators have proposed a ban on false environmental claims, arguing that this will help create a sustainable and competitive market.
This recently imposed deadline may prompt a response from the airline industry, considering that information shared by some companies focus on the use of sustainable aviation fuels that have been endorsed by the European Union. In its latest press release, Airlines for Europe, stated that members were already spending significant amounts on innovative tech such as sustainable aviation fuels as well as new engine and aircraft technology.
It added that members now required support from government for zero emissions and sustainable aviation fuel aircraft technology. At present, the challenge remains in ensuring that claims and communication do not overtake progress made thus far.
Concerns of greenwashing have been based on claims used in product marketing. Now, all claims must be supported by science-based evidence. This is in addition to companies having to explain any deviation for sector and industry or law standards.
Financial penalties shall be imposed on companies that fail to adhere to the scope of the European Union’s rules. The penalties include revenue confiscation, fines and even temporary exclusion from public procurement.
Organizations, persons and others being negatively impacted by misleading ads shall be afforded a procedure to appeal or file complaints.
The European Union’s recent move has been expected for a while, after the decision was adopted under the Green Claims directive proposed in March. The directive also discusses the verification process all environmental labels and claims will undergo. The aim of this process is to evaluate compliance. However, it isn’t a guarantee against scrutiny by authorities or civil liability.
It is expected that other sectors will work toward ensuring evidence aligns with claims used by their businesses, particularly once the inquiry’s findings become public. It is important to note that microfirms are excluded from the scope of the proposed directive. In fact, the European Parliament highlighted the need to support small to medium enterprises with the directive’s implementation.
As more companies embrace environmental, social and governance (“ESG”), it is crucial that they maintain the highest degree of transparency so that claims of greenwashing don’t taint their noble efforts.
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