Green Claims Directive (GCD) – What It Means and How It Will Shape Sustainability Communication

As more companies highlight environmental and sustainability achievements in their marketing – sometimes without sufficient proof – the EU has introduced a proposal to bring clarity, comparability, and credibility to environmental communication [1].

This initiative, known as the Green Claims Directive (GCD), is part of the EU’s broader effort to empower consumers, prevent greenwashing, and ensure that environmental marketing is transparent and trustworthy.

In this article, we explore the background, content, current status, and potential impact of the directive – and outline practical steps your company can take to prepare for a more transparent future in sustainability communication. Even if the proposal does not pass in its current form [7], there are strong reasons to ensure that your environmental claims are already credible and well-substantiated.

Background and Purpose

Why the GCD?

The EU’s European Green Deal emphasizes the role of consumers in driving the green transition – particularly by improving transparency and access to sustainable options. Yet, a major EU study found that over half of all environmental claims are vague, misleading, or lack supporting evidence [3]. This demonstrated the need for clearer rules on what can genuinely be described as “environmentally friendly.”

The Green Claims Directive is designed to complement existing rules, such as the Unfair Commercial Practices Directive (UCPD), providing more specific guidance for environmental claims [2].

Objectives

The directive aims to:

• Ensure that environmental claims are reliable, comparable, and verifiable.
• Protect consumers from greenwashing.
• Create a level playing field for businesses across the EU.

What the Proposal Covers

Scope

The GCD applies to companies making voluntary environmental claims directed at consumers (B2C) about products, services, or business activities. Claims made in a B2B context are not covered. It also complements – rather than replaces – sector-specific regulations [2].

Key Requirements

• Claims must be based on scientific evidence, ideally including a life-cycle perspective [3].
• Certain claims and environmental labels require independent third-party verification [4].
• Environmental labels must be transparent, credible, and well-governed [1].
• Marketing communication must not create a misleading impression that a product is “greener” than it actually is [2].

Sanctions

Member States will define effective, proportionate, and dissuasive penalties for non-compliance. Companies that break the rules risk financial fines, reputational damage, and loss of consumer trust.

Timeline

The European Parliament and Council have adopted their positions, and trilogue negotiations began in 2025. However, the process has since been paused, leaving the directive’s future uncertain. If adopted, it could enter into force around 2027 [7].

Status in 2025

In June 2025, the European Commission announced it was considering withdrawing the proposal. Some Member States have pushed to include micro-enterprises, which the Commission believes would impose excessive administrative burden [7].

Still, the directive has not been formally withdrawn [8]. Discussions may resume, and in parallel, the EU continues to tighten other rules on sustainability communication – such as through the Empowering Consumers for the Green Transition Directive (EmpCo), adopted in 2024 [5].

Even if the GCD itself is delayed or revised, the trend is unmistakable: environmental claims will face greater scrutiny, and the demand for evidence and transparency will continue to rise.

What It Means for Companies

Implications

• Environmental claims must be supported by data and documentation.
• Some claims will require third-party verification.
• Companies must review and ensure the credibility of their eco-labels and certifications.
• While this may increase administrative work, it also provides a powerful opportunity to build trust and demonstrate leadership.

Practical Steps

1. Map your environmental claims – Review your website, packaging, and marketing materials.
2. Review your evidence – Do you have data or life-cycle analyses to back your claims?
3. Be specific – Avoid broad terms like “environmentally friendly” unless clearly explained.
4. Develop verification routines – Set up internal or external review processes.
5. Educate your teams – Ensure that sustainability and marketing teams understand the requirements.
6. Stay informed – The EmpCo Directive and other EU initiatives already affect how sustainability communication is regulated.
7. Communicate with balance – Avoid both greenwashing (overstating achievements) and greenhushing(withholding legitimate information).

Implications for Sustainability Communication

If implemented, the GCD will mark a significant shift for sustainability professionals and communicators – moving from broad, feel-good environmental messaging to specific, evidence-based, and comparable claims.

Yet even without the directive in force, the principles it promotes can already strengthen credibility. Showing how a claim was developed will become just as important as the claim itself.

This approach signals responsibility, reinforces trust, and shows that sustainability is not merely a marketing exercise – it’s about transparency, accountability, and long-term integrity.

In this sense, openness becomes a new competitive advantage.

Summary

• The Green Claims Directive (GCD) seeks to counter greenwashing through stricter requirements for scientific substantiation and verification.
• Although its status remains uncertain, the direction of travel toward tougher regulation is clear.
• Companies should prepare now: review environmental claims, strengthen supporting data, and communicate with transparency and integrity.

💡 Tip: Take a look at your three most common environmental claims this week – how well do they hold up against the new expectations for verifiability?

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