New EU Rule on Green Claims: Strengthening transparent communication and real commitments to world regeneration

As a start-up that enables companies to contribute to global regeneration by financing impactful projects in areas such as forest protection, regenerative agriculture, reforestation, and more in the Global South, we are often asked if we support companies in greenwashing.

Can these companies use our partner logo and the financing of reforestation projects in other parts of the world to label their products as environmentally friendly, even though they continue to cause harm and are not produced more sustainably? Are we not helping to deceive customers and continue selling destructive products?

For us, greenwashing is a significant problem, which is why educating the companies we collaborate with is our top priority. Many companies, especially small ones, want to do something good and contribute but don't know where to start and don't yet understand how to communicate properly and transparently. This can lead to miscommunication, which not only harms the company itself but also us. That's why we put a lot of effort into our internal anti-greenwashing guidelines and advise companies on their external communication and the claims they can make about their collaboration with us.

We firmly believe that our services should never be used for false claims—it is very important that no product is claimed to be CO2-neutral or climate-positive solely through offsetting. The projects we support are never classic offsetting projects: we always aim to pursue ecological, social, and economic goals collectively, empower women and communities, and enable people to lead independent lives. If, for example, reforestation projects are reduced to their CO2 impact, it completely overlooks their socio-economic impact and their ecological benefits beyond CO2. Our goal is to enable companies to genuinely contribute to global regeneration and raise awareness among their stakeholders about sustainability and social justice in all three dimensions.

The New EU Rules on Green Claims

In this sense, we fully support the new EU rules on green claims. On March 14, 2024, the European Parliament adopted new rules regarding explicit environmental claims and labels. These rules are part of the Green Claims Directive (GCD), a legislative measure aimed at preventing false or misleading environmental claims, commonly known as "greenwashing."

Key Highlights of the Green Claims Directive:

1. Substantiation Requirements: Businesses must substantiate their environmental claims before publishing them. This includes providing scientific evidence, lifecycle considerations, and explaining deviations from legal or industry standards.
2. Transparency and Communication: Environmental information must be disclosed with the product, typically through a URL or QR code, covering aspects such as environmental impacts, relevant standards, improvements achieved, and any offsetting measures.
3. Third-Party Verification: Environmental claims and labels will require third-party verification. Verifiers will issue a certification of conformity, confirming compliance with the GCD. Regular checks and public reports will ensure continued adherence.
4. Penalties for Noncompliance: Companies found to be noncompliant may face significant fines, confiscation of revenues from noncompliant claims, and temporary exclusion from public procurement processes.
5. Support for SMEs: Micro-enterprises are excluded from the directive, and SMEs will receive support to comply with the rules, including financial resources, training, and technical assistance.
6. Consumer Empowerment: The directive aims to empower consumers by ensuring that advertised environmental benefits are accurate and reliable, facilitating informed purchasing decisions.

Impact Hero's Position

At Impact Hero, we welcome the new EU rules on green claims and the efforts to prevent greenwashing. Our mission is to enable companies to genuinely contribute to world regeneration, not to make false environmental claims. We believe that transparency and accountability are essential for building trust and promoting sustainable practices.

Our Commitment:

• No False Claims: We discourage companies from using our services to make unsupported environmental claims. Our partnerships are about genuine contributions to ecological restoration and sustainability.
• Educating Stakeholders: We strive to educate our partners and stakeholders about the importance of accurate environmental claims and the broader impact of their actions on global ecosystems.
• Supporting Compliance: We are committed to helping our partners comply with the new EU rules, ensuring that their environmental claims are substantiated, transparent, and verified.

Join Us in Making a Real Impact:

By supporting Impact Hero, companies can contribute to world regeneration and make a tangible difference in the Global South. We urge our corporate community to focus on real, measurable actions that benefit the environment and to avoid making unsupported claims about their products' environmental impacts.

Together, we can work towards a sustainable future, ensuring that our efforts in environmental restoration are genuine, impactful, and in line with the highest standards of transparency and accountability.

From Impact Hero with love,

Dr. Hannah Schragmann

Chief Transparency Officer, Impact Hero

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