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 Horvath is a partner at PwC with extensive expertise in sustainable finance and the asset management industry, including both financial and real assets. Since joining PwC Switzerland in 2011 and PwC Luxembourg in 2018, he has led significant projects in regulatory audit and advisory, focusing on the asset management sector. Michael has played a key role in implementing the EU regulatory framework for sustainable finance, including SFDR, taxonomy regulation, and CSRD, as well as other regulatory initiatives such as DORA, AML/CFT, CSSF circular 18/698, and MICA. He is a certified public accountant in Switzerland and Liechtenstein and has contributed to designing compliance frameworks and operational implementations driven by regulatory changes. His notable client projects include defining target operating models for Luxembourg AIFMs, digital operational resilience planning, AML/CFT framework implementation, and ESG/sustainability process design, supported by his involvement in training and regulatory advisory.