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The EU Environmental Council Takes an Official Position on Green Claims Directive
Induja from Trace
June 27, 2024
Happy Thursday!
We’re excited to kick off our newsletter this week with a discussion on what’s going on in the industry. In conversation this week we’ll dive into some of the updates to the EU’s Green Claims Directive and what that means for consumers.
We’ll also dive into some of the typical terms companies use to describe their sustainability initiatives to consumers. And of course, check out our brand spotlight for one of our featured brand partners.
Thanks for reading!
Headlines
As of June 2024, The EU environmental council has officially adopted a position on the Green Claims Directive (introduced last year), which aims to combat greenwashing by requiring independent third-party verification of environmental claims and labels.
Greenwashing has long been a problem in the industry, even in more environmentally forward landscapes such as the EU. A study revealed that 40% of claims made by companies regarding their sustainability efforts were “completely unsubstantiated”, while 53% were “vague, misleading or unfounded.”
This new proposal specifically targets written and oral environmental claims as well as labels that companies use voluntarily when marketing their greenness. It also applies to existing and future environmental labeling schemes, both public and private ones.
Companies will be required to use the latest scientific evidence to substantiate their claims and also make sure the environmental characteristics that are being referred to are easy to understand for the average consumer.
Additionally, any green claims would have to be verified by third-party independent experts before being published. Certain claims may qualify for a simplified verification process, reducing the burden on SMEs.
The Council’s general approach will form the basis for negotiations with the European Parliament so the final outcome of the directive still remains to be seen.
Analysis of the Week
Speaking of common environmental characteristics, let’s dive into terms that brands will often use to describe their products and packaging and what they mean so that you as a consumer can distinguish what you’re looking for:
Term | Meaning |
Biodegradable | Biodegradable items naturally decompose fairly quickly in the environment and avoid pollution, “returning back to the Earth”. |
Carbon Neutral | When an organization claims to be carbon neutral, this means that the carbon emissions they release are balanced out by the carbon dioxide that they remove from the atmosphere. This is typically achieved by purchasing carbon offsets, which pay for programs such as reforestation efforts. |
Cruelty Free | These products were manufactured without killing or harming animals. This can often refer to vegan products, but a product being cruelty-free does not mean it is vegan. |
Organic | Organic refers to raw materials that are not genetically modified and have been grown without pesticides. While many organic products are more sustainable than their nonorganic counterparts, this is always not the case. |
Recycled | When a product is made from recycled fibers, old fibers were taken from existing garments and remade into new fibers. |
Upcycled | The product was repurposed or transformed from a waste material, unwanted item, or by-product of a different process. |
Brand Spotlight
Learn about one of the sustainable brands on Trace’s marketplace!
Check out today’s featured brand: Basic Britches
Basic Britches came about when the founder Anna identified two problems: having too many t-shirts to know what to do with, and not having many options for ethically produced panties. What started out as a hobby and personal venture sparked a deep dive into the way the fashion industry pipelines garments from sweatshops to landfill.
Basic Britches seeks to disrupt that cycle and re-imagine fabric recycling. All their underwear is produced from recycled/donated unused 100% cotton t-shirts and is designed to be comfy, cute and sustainable. All the products are produced in Portland by Anna herself! Check out Basic Britches for a unique, high quality product.
Innovation in Fashion
Mirum - low carbon, bio-based leather alternative which is also plastic-free
Shimmy - AI powered app based training designed to upskill and reskill garment workers
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