Businesses need good legislation in the EU: The current Green Claims Directive misses the mark

As companies that are taking sustainability seriously, Independent Retail Europe and 14 other signatories are in favour of rules to tackle greenwashing. In today’s global challenges, companies need good legislation that is workable, predictable and harmonised for all parties. In its current form, the Green Claims Directive does not meet those objectives. It fails to solve the many shortcomings the 15 signatories have been raising for all companies, not only microenterprises. It will discourage companies from communicating legitimate sustainability efforts (greenhushing), diverting critical resources from sustainability innovation to compliance. This undermines the EU’s competitiveness and simplification agenda and goals of fostering consumer information. Given the current context, the 15 signatories urge policymakers to oppose the proposal in its current form.