Understanding the EU Green Claims Directive - Compliance and business strategy

Over the past decade, the focus on environmental issues has grown exponentially, resulting in various global commitments and initiatives aimed at transforming current institutional, economic, and financial models.

The EU Green Claims Directive, proposed in March 2023, aims to combat greenwashing and ensure that companies provide accurate, verifiable, and transparent sustainability claims. With increasing regulatory scrutiny, investor expectations, and consumer demand for sustainability, businesses must align their marketing and reporting practices with scientific evidence and third-party verification.

This directive will transform how companies communicate environmental claims and significantly impact branding, product labeling, and corporate sustainability disclosures. Non-compliance could lead to legal penalties, reputational damage, and loss of consumer trust.

This training will help organisations understand the regulatory requirements, assess compliance risks, and implement best practices for credible sustainability claims.

By the end of this training, participants will:

• understand the scope and objectives of the EU Green Claims Directive;
• learn about banned greenwashing practices and compliance obligations;
• identify key regulatory requirements for sustainability claims and product labeling;
• explore risk mitigation strategies for environmental marketing;
• gain insights into best practices for substantiating and verifying green claims.

• Introduction to the EU Green Claims Directive
  • Why was the directive introduced? - Tackling greenwashing & protecting consumers
  • Connection with CSRD, SFDR, EU Taxonomy & Circular Economy Action Plan
  • Industries affected and compliance deadlines
• Key regulatory requirements and banned practices
  • Prohibited greenwashing tactics - Vague, misleading, or unsubstantiated claims
  • Stricter rules for generic sustainability terms (e.g. "eco-friendly," "climate neutral")
  • Third-party verification and substantiation requirements
  • Product Environmental Footprint (PEF) methodology for assessing claims
• Case studies: greenwashing failures and legal consequences
  • Greenwashing lawsuits - Companies fined for misleading environmental claims
  • Consumer backlash and reputational damage - How misleading marketing eroded brand trust
  • Regulatory enforcement trends - EU and national authority crackdowns
• Best practices for compliance and transparent green claims
  • How to substantiate sustainability claims - Science-based verification
  • Clear, specific, and measurable sustainability messaging
  • Certifications and eco-labels - Ensuring credibility in environmental branding
  • Internal controls and sustainability governance for claim validation
• Next steps for businesses
  • Conducting internal audits of sustainability claims
  • Training marketing, legal and ESG teams on compliance requirements
  • Implementing data-backed sustainability reporting
• Enhancing transparency and credibility in corporate sustainability messaging

This training is coordinated by Michael Horvath, Partner at PwC Luxembourg.

Michael has acquired a strong financial and regulatory audit as well as advisory background and significant experience leading projects in the asset management sphere.

In the recent past, Michael has been particularly involved in various regulatory projects related to the implementation of the EU regulatory framework for sustainable finance (i.e. SFDR, taxonomy regulation, CSRD) at entity and product level. Michael is involved in various other regulatory projects for clients, from DORA, AML/CFT regulation over CSSF circular 18/698 to MICA.