ESG Today: EU Parliament proposes ban on green claims based solely on carbon offsetting, and more...
Lawmakers in the European Parliament voted 544-18 to approve the adoption of new proposed rules requiring companies to substantiate and verify their environmental claims and labels, aimed at protecting consumers from greenwashing. The new rules form Parliament’s negotiating position on the EU Commission’s proposed “Directive on Green Claims” released in March 2023.
One of the new requirements proposed by the EU Parliament is to include in the rules a prohibition on green claims such as “carbon or climate neutrality” that are based solely on carbon offsetting schemes. Parliament’s position also adds a requirement for such claims to be supported by quantified and science-based targets, and to include “a detailed and realistic implementation plan.