The European Parliament has given its seal of approval to groundbreaking legislation that effectively outlaws greenwashing and the circulation of false or misleading information around products. EU member states will have 24 months to incorporate the new regulations into their own national legislation.

But what does this new legislation entail, and does it affect countries outside the European Union?

What Is Greenwashing?

Greenwashing is the practice of making green claims or generic environmental claims, essentially false or misleading environmental claims about the eco-friendly benefits of a product or practice to create a positive public image.

Fossil fuel companies, in particular, have been accused of greenwashing to distract from their role in the climate crisis.

The term ‘greenwashing’ actually came about back in the mid-80s, coined by environmentalist and then student Jay Westerveld.

Westerveld was in Fiji and staying in a hotel when he noticed that guests were asked to reuse towels to ‘save the planet’. The hotel failed to mention that this would also save them a lot of money.  

Greenwashing is a gift to companies' marketing teams. They can pretend to care about the environment whilst manipulating information or just downright lying to attract customers who genuinely want to make eco-friendly purchasing decisions.

Massaging information for profit is as old as the tides. This new legislation is designed to protect consumers from false green claims and deceptive marketing practices and promote transparency in environmental information.

What Does Greenwashing Look Like?

Fossil fuel companies are the best-known offenders when it comes to green claims.

Corporations involved in oil and gas production, such as fossil fuel giants Shell and BP, have been accused of greenwashing through their marketing campaigns and annual reports.

Shell made exaggerated claims about its investments in renewable energy solutions, which were criticised by environmental groups and regulators. Shell failed to deliver the clean energy solutions it promised.

The fossil fuel industry has a history of misleading environmental claims to downplay its role in greenhouse gas emissions. Research has shown that these companies invest only a fraction of their money in renewable energy.

Oil and gas companies are the most famous greenwashing offenders but green claims have many shades of...well, green. Methods deployed to suggest and confuse range from the brash to the subtle. Here are some of the best-documented examples that can mislead consumers.

• Natural imagery – including trees, lakes, animals, etc.- often implies that the company is actively trying to protect nature by using renewable energy or processes when, in fact, it’s probably doing the opposite.

• Throwing in buzzwords such as ‘eco-friendly’ or ‘sustainable’ but keeping things vague so the consumer never really gets any actual detail. 

• Overly ambitious pledges for climate change – again, what the brand says might sound good on paper, but banging the drum is one thing; actions speak louder than words.

• Vocal about the latest, most sustainable initiative – all while actively continuing with practices that are causing significant harm to the planet.

• Promoting recycling – yet manufacturing their products with plastics that actually aren’t so easy to recycle and have a significant environmental impact.

Is Greenwashing That Commonplace?

Why do companies promote greenwashing ads? Well, because making your brand green and eco-friendly is a great way to boost sales. Is greenwashing that common?

Well, yes, it is. The European Commission, in conjunction with national consumer authorities, screened green claims only to find that environmental benefits were false in at least 42% of cases.

Surveys suggest that consumers consider the environment far more when they shop than they did even a few years ago.

What Are The Goals Of The New European Legislation?

Consumer protection is at the heart of the new regulations, and there are several stated intentions behind the new legislation. These include:-

• Green claims must be easily comparable and verifiable across the EU.

• The regulations want to help establish a level playing field when it comes to comparing environmental performance.

• Consumers must be able to make easily informed decisions on environmental benefits when purchasing products.

Greenwashing And The Beauty Industry

The beauty industry can be just as exploitative as the next sector when it comes to shouting out about environmental benefits and sustainability. They want to sell products as much as the next woman.

However, the new legislation outlaws the production of false or misleading claims about beauty products. Information that is too generic to be properly evaluated or just downright false is banned.

Now, only sustainability labels based on approved certification schemes or established by public authorities are permitted. Products can no longer bear the labels 'biodegradable,' 'climate neutral,' 'environmentally friendly,' or 'eco' unless there is hard evidence to support this.

This will have a direct impact on labelling, with only product labels based on verified and certified schemes permitted.

Additionally, misleading claims and statements that position a brand with general terms of a neutral or diminished environmental impact due to carbon capture, net zero emissions, or carbon offsetting will also be prohibited.

Beauty Brands In The Greenwashing Frame

Fossil fuel companies are not the only corporations that have faced criticism for corporate greenwashing. The hard reality of commercialism means that the beauty industry has been quick to cash in on the emerging trend of customers paying more for sustainable products.

Some of the main offenders include Head & Shoulders, which was found to be marketing a particular bottle as recyclable when only parts of it were.

L'Oreal provides a classic example of a vague and unsubstantiated claim. One of their Elvive Full Restore 5 shampoo packs claims to be 'more sustainable', but there is no actual data or evidence to back this up.

The Changing Markets Foundation (CMF) stated that the claim is meaningless because consumers are not told what bottle is more sustainable. The statement, '100% recycled plastic bottle,' is also spurious as the cap is not made from waste materials.

Bondi Sands was the target of a class action in Australia for advertising its sunscreens as 'reef-friendly'. The sunscreens contained harmful ingredients, including avobenzone, homosalate, octisalate, and octocrylene.

As a result, the brand has made significant changes to how it defines “Reef Friendly” on its website, including the disclaimer that the term is ‘not defined or regulated by authorities.’

Beauty Industry Success Stories

There are plenty of beauty brands that embrace sustainable practices and capitalise on the integrity of their reputation with many more making the green transition.

Lohy states that their packaging is biodegradable, solvent, chemical-free and non-toxic. They use odourless paper tape to seal parcels that are water-activated. The boxes they use are also made from recycled materials.

The Face Planner is an example of a company making the green transition and working towards a goal of refillable packaging across all of their products.

The caps, lids, and pumps of all of their products are made from post-industrial recycled plastics, which can be recycled. They chose glass bottles and jars for their lower environmental impact, durability, and ease of reuse. Their outer packaging is made in the UK from FSC-accredited cardboard using biodegradable foils.

The Face Planner does not include secondary packaging as they believe it is wasteful and unnecessary and ultimately ends up in a landfill. They choose their manufacturer with care, looking for excellent sustainability credentials and focusing on making the individual product manufacturing phases more energy efficient.

Their manufacturer sources their ingredients from a small number of excellent suppliers. The Face Planner only works with ingredient suppliers who can ensure that the products they provide are reliable, safe, and of excellent quality.

Baruti Perfumes is a standout fragrance brand renowned for its commitment to developing fragrances that prioritise sustainability, fair trade, and charitable contributions.

The brand not only emphasises eco-friendly practices in its production and packaging but also actively supports social causes, making it a responsible choice for fragrance enthusiasts.

Spotting Genuine 'Green' Beauty Brands

The mantra, 'always read the label,' which has tended to apply to food products, is the way to go with beauty purchases.

• Check the ingredients list - a rule of thumb is the shorter, the better.

• Look at the brand's website and take a deep dive into its green credentials.

• Challenge a brand's transparency—are they open and honest about the fact that they are not completely green, and what steps are they taking to change things? Companies that are making the transition can be more genuine than ones that present themselves as totally green.

• Smaller companies tend to be cleaner because it's often easier for them to control their supply chain regarding ingredients and packaging.

What's In And What's Out

Generic environmental claims are out. Key terms to watch out for include 'green beauty,' 'energy efficient', and 'eco-friendly.' Companies cannot make these claims without hard evidence.

Also prohibited is making a claim about an entire product or packaging when the data suggests it only supports a particular aspect, for instance, a 100% recyclable shampoo bottle when the cap is non-recyclable.

Claims that a product doesn't contain any hazardous substances are forbidden if just one is present, even if many of the main culprits are absent. This is a common practice within the beauty industry.

So what's in?

• Certified sustainability labels including Green America Certified Products, Certified Bio-Grow Organic, Living Wage Certified, MADE SAFE® Certified or RSPO Certified Palm Oil.

• Clear statements and pledges that are backed up with verifiable data.

• Comparing products based on social/environmental aspects

Key Beauty Brand Takeaways From The Greenwashing Scandal

• Avoid deceptive or vague language when advertising products.

• Support claims with third-party certifications.

• Only describe containers as recyclable if all parts of the container are recyclable.

• Take care over refill containers and make sure they don't negatively impact the environment in their production processes.

A Brighter Future For Eco-friendly Cosmetics Brands

The move by the European Union to create new legislation is part of a larger framework for climate action under the Paris Agreement, which includes the Green Claims Directive, the Ecodesign for Sustainable Products Regulation, and the Right to Repair Directive.

The trend is definitely in the right direction. Consequently, the beauty industry will need to seriously rethink its marketing strategies.

Terms like 'clean beauty', 'low carbon', and 'zero waste beauty' can no longer be used as they are misleading. This change won't just affect beauty brands; it will also have significant repercussions for the food and beverage sector and any other consumer goods. It's crucial for the public to be aware of these practices and make genuinely informed choices.

At Green Fig Beauty, we select brands specifically for their commitment to ethical welfare. These include beauty and wellness brands with traceable supply chains and ‘naked shipping’ options, giving you the knowledge you need to make informed purchasing decisions.

Do you think the new legislation will make an impact? 

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For ethically vetted brands, be sure to check out our brand directory here.

Frequently Asked Questions

What Does The Greenwashing Ban Mean For Genuinely Ethical Beauty Brands?

Beauty companies doing the right thing need have no fears. The new ban is great news for the industry, supporting companies that genuinely care about environmentally friendly practices and penalising corporations that prioritise financial gain over the environment and who are attempting to mislead customers.

What Is The Impact Of The Ban On Countries Outside The EU?

Non-European member states do not have to adopt the new laws. However, it is likely that the UK will follow suit as it retained many European standards after Brexit. The USA has a tarnished reputation when it comes to environmental claims; there is no specific federal law currently that controls greenwashing ads in the States. However, the new EU legislation is a warning shot. Ultimately, the commercial imperative means American brands won't want to have a lesser appeal to customers in the EU, and this trend could ultimately have a ripple effect across the world, inspiring other nations to adjust their regulatory frameworks.

What Can Cosmetic Brands Do In Order To Be More Sustainable?

Any brand can talk the talk when it comes to doing its part to combat climate change, but it also needs to walk the walk. Actions speak louder than words, after all. All businesses should make their footprint public and leave the decision to the consumer on whether or not to spend money on their products. Being aware of your footprint is a big step—pun definitely intended! Key strategies include sourcingsustainable packaging, implementing sustainability training for employees, being transparent, and supportingethical labour practices.