At the core of the Green Claims Directive is the strengthening of consumer protection. As a result, “greenwashing” will be monitored more closely across the EU starting in September 2026.
The Directive brings clarity and security. When environmental claims must be verifiable and based on reliable data, consumers can make purchasing decisions without fear of misleading promises. In the future, using terms such as “eco-friendly” or “green choice” without explanation will no longer be acceptable; such claims must be supported by fact-based information.
This increases trust between companies and consumers and reduces the risk of sustainability becoming merely a marketing gimmick. The goal is transparency, enabling consumers to genuinely compare products and services, their origins, and, for example, their climate impacts.
The pitfalls of sustainability communication are commonly referred to using various “washing” terms. Below are descriptions of the most important ones:
What these all have in common is a breach of trust. When words and actions do not align, communication becomes a risk to the company’s business as well.
The Directive will enter into force at the EU level, and Member States must implement it into national legislation by the end of 2026 at the latest. Companies must ensure that all sustainability claims are verifiable and based on reliable data. Misleading communication may result in financial penalties and reputational damage.
For companies, this is above all an opportunity to stand out as leaders in sustainability. Authenticity and transparency are key: if your communication is not grounded in actions and verifiable facts, the consequences may be far-reaching.
Although the Directive’s criteria and sanctions primarily target large companies, consumers may not be aware of the details or size thresholds involved. Consumers expect the same standards from all businesses. If a company’s communication lacks credibility, the risk of reputational damage is real regardless of company size.
Moreover, transparency is a competitive advantage. Small businesses can stand out positively by communicating honestly about their current status, for example: “We are on a journey towards more sustainable operations – here are our concrete steps.” This builds trust and strengthens the brand.
Claims related to emissions offsetting and carbon neutrality will be prohibited in the future. Communication must not give the misleading impression that a product or service has no emissions or negative environmental impacts at all, as this is practically impossible.
However, companies may still communicate goals related to carbon neutrality. These goals must be accompanied by a genuine, detailed plan outlining how they will be achieved. The plan must be reviewed by an independent third party and made publicly available, for example on the company’s website.
When communication is based on facts and transparency, it builds trust and reduces the risk of greenwashing. Start by reviewing your current practices and proceed step by step towards truly credible communication. The following steps can help you get started in developing sustainability communication:
In sustainability communication, images and colours also tell a story about a company. As regulation tightens, visual elements can be just as significant as textual content. The use of nature imagery and green backgrounds or font shades can easily create an impression of purity and low emissions.
In the future, companies should consider the following as part of their communication:
Both the Green Claims Directive and other sustainability legislation are driven by a positive objective: to ensure good living conditions for current and future generations while respecting human rights, ecological sustainability, and a sustainable economy. When sustainability is genuinely at the core of business operations, decision-making, and action-based communication, trust between companies and customers is strengthened. Trust is the strongest competitive advantage.
Small companies are often agile and able to respond quickly to the demands of customers and supply chains. Increasingly, large companies require sustainability practices from their subcontractors, making openness and transparency essential.
Sustainability also improves access to financing. Investors and financiers favour companies that can demonstrate a sustainable business model. Although CSRD-compliant sustainability reporting is not mandatory for micro and small or medium-sized enterprises, sustainability reporting and communicating it effectively are powerful ways to build trust and stand out in the market. The EU’s voluntary sustainability reporting standard for SMEs (VSME) facilitates the integration of sustainability into business operations. Sustainability reporting is also a form of communication.
When sustainability is reflected in both actions and communication, it becomes a strategic investment in the future. This is why investing in sustainability is worthwhile even for smaller companies. Starting small is enough, and support is often available from local business advisory services.
The author is Anna Uusitalo, Business Advisor at the City of Kalajoki and Raahen Seudun Kehitys, working in the VATUPASSI – Sustainable Future project team.
Keywords: sustainability communication, Green Claims Directive, greenwashing, sustainability marketing, corporate transparency, EU environmental claims
Sources:
European Commission: Green Claims Directive
Isokangas, Niipola, Vassinen: Viherpesuopas – Miten merkitys muuttuu markkinoinniksi
Finnish Competition and Consumer Authority – Environmental and Consumer Protection
Heidi Korva – Communiké blog (in Finnish)
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