With the Green Claims Directive, the European Commission aims to prevent greenwashing while enabling truly climate and environmentally friendly consumption. Torsten Dietz, CEO of Liganova Group, discusses the challenges and opportunities this presents for companies and agencies.

The new EU directive marks the beginning of a new era. According to an EU study, more than half of all environmental claims are vaguely formulated, and 40% of advertisers cannot provide evidence for their claims. The Green Claims Directive (GCD) sets clear standards, demanding concrete proof for environmental advertising claims. Terms like “environmentally friendly,” “natural,” “biodegradable,” “carbon-neutral,” or “ecological” without evidence are prohibited. Eco-labels or sustainability certifications must be based on certification systems. Compensation systems no longer justify positive environmental impact claims. To advertise with terms such as “green,” “sustainable,” or “eco-friendly,” advertisers must meet legal requirements and provide solid facts.

Today, claims of sustainability and carbon neutrality significantly influence consumer behavior, necessitating verifiable and transparent information. Advertisers must now carefully consider whether marketing sustainable products on the basis of sustainability is still viable. To legally use Green Claims, advertisers must meet several criteria, including specifying whether the claim applies to the entire product, parts of it, or certain company activities. Advertisers must also consider the entire lifecycle of the advertised product and ensure that legal requirements are exceeded. Scientific evidence is necessary, and information should be easily accessible to consumers, for example, through QR codes or online. These are just a few of the many future requirements. Misuse of environmental claims can lead to public backlash and fines up to 4% of annual turnover.

The GCD, a clear stand against greenwashing, has already heightened societal attention, compelling the marketing and advertising industry to act: accuracy and form of sustainability messages in communication are crucial. Lawsuits against companies like dm, Katjes, or Tesla demand transparency. The directive calls for honesty and transparency in the transition to a green economy, backed by data.

Hence, it’s crucial to translate sustainability data into compelling campaigns. A good example is Fritz Kola’s clear and engaging sustainability report “Das Gute spricht Klartext”. The challenge for the industry is to make complex data and facts easily accessible. A third of companies expect agencies to act sustainably, and 60% anticipate excluding agencies without sustainability management within four years. The demand is for a wide range of services, including support in setting standards and goals, as well as sustainability management consulting and reporting solutions – essentially, a full-sustainability-service agency.

It is not surprising, then, that the GWA study “Green Monitor”, which examines, among other things, the collaboration between agencies and companies in the context of sustainability, arrives at the following result: One third of companies expect agencies to act sustainably. Even more telling is the exclusion of agencies without sustainability management, which 60 percent of respondents expect to occur within the next four years at the latest. The demands encompass an ever-widening portfolio of services and go beyond the implementation of appropriate image and product campaigns. Increasingly sought after are supports for standard and goal setting, as well as consulting services in the area of sustainability management and solutions for sustainability reporting – one could speak of a Full-Sustainability-Service Agency.

The communication industry must adapt accordingly to the GCD. Agencies should be prepared and review their portfolio now for future viability – and ideally think about tapping into new potentials. Those who position themselves as environmentally conscious need substance. Initially, it depends on how sustainably an agency is set up. This not only concerns the sustainable design of agency premises and travel policy but also which materials are used and how the supply chain is structured is crucial. And very importantly: Is there general sustainability expertise available to strategically advise companies on this matter? This also includes adequately addressing the legal pitfalls of the new GCD. Companies now increasingly rely on relevant expertise that supports them on the path to legally secure and effective sustainability communication.

Conclusion: Sustainability competence becomes the standard. Laws like the new EU directive for sustainable advertising claims are dynamic and make sustainability a crucial, verifiable criterion. The Green Claims Directive will set standards for sustainable advertising messages. What was once nice to have is now a must-have. Agencies that competently support this sensitive issue gain a competitive edge, helping their clients ensure transparency across all channels. This development offers agencies a significant opportunity to reposition themselves and contribute to economic, ecological, and social change.