New Rules for Environmental Transparency in the EU
From September 27, businesses in the European Union will be subject to stricter control regarding the environmental claims they make to their customers. The new EmpCo directive aims to limit the practice of "greenwashing," where companies use misleading methods to present their products as more eco-friendly than they actually are.
According to sustainability expert Stoycho Nakov, the directive is ambitious because it focuses not only on specific messages for a given product but also on the overall impression that corporate communication creates for the consumer. This requires companies to review their marketing campaigns and bring their terminology into alignment with the new requirements.
Specificity Instead of General Phrases
One of the main focuses of the new rules is the requirement for precision. Examples are cited where labels such as "100% recycled" could mislead consumers if they refer only to the packaging and not to the product content. The directive will require clearer formulations, such as "Packaging made from 100% recycled materials," to avoid ambiguity.
An important rule is also that companies presenting themselves as climate neutral cannot rely on carbon offsets performed abroad. Instead, investment in their own local processes to reduce their environmental footprint is encouraged.
Impact on Small Business and the Market
The new regulations bring different challenges for various market participants. On one hand, small producers may experience difficulties due to a lack of resources for collecting and maintaining extensive databases of evidence. On the other hand, the directive creates a more level playing field, as both large and small players will be required to use the same clear and specific communication.
There is also a risk of a negative effect, where companies might choose not to highlight their environmental features at all to avoid falling under the strict control of the new rules.
Control in Bulgaria
In Bulgaria, compliance with the directive will be the responsibility of the Commission for Consumer Protection (CCP). The regulator will need to acquire the necessary expertise to recognize the authenticity of environmental certificates and assess the correctness of climate neutrality claims. The process of transposing the directive into Bulgarian legislation is already underway.
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In addition to marketing rules, EmpCo encourages the transition to a circular economy by also fighting unfair practices, including the intentional shortening of product lifespans, which hinders sustainable consumption.