Misleading marketing claims are nothing new – for every honest apothecary, there’s a snake oil salesman just around the corner. That’s made it hard for regulations to keep up. 

While we may not see as much snake oil these days, the rise of the 21st century ‘corpsumer’ – a shopper who considers a company’s ethical credentials when making purchasing decisions – has seen supermarket shelves filled with products claiming to be “green,” without meaningful external validation. In fact, a 2020 European Commission study found that more than half of environmental product claims were vague, misleading, or unfounded. 

But no more. 

Over the course of this summer, new European Union regulations and updated B Lab standards are drastically changing how businesses are allowed to talk about their sustainability credentials, establishing tighter rules around what it means to call yourself “green.” 

EU Regulations on greenwashing 

The EU’s new Directive for Empowering Consumers for the Green Transition is a sweeping crackdown on misleading environmental claims – and it’s also a mouthful, so I’ll just be calling it the ECGT from now on.  

From this September, every product sold in the EU (regardless of where a company is headquartered) will be prohibited from making vague or generic claims about environmental and social impact, including common terms like “green packaging,” “eco-friendly,” and “carbon neutral” (when based on offsets). 

To be clear, this doesn’t mean you can’t talk about your environmental impact; you just have to be specific. What percentage of your packaging is made from recycled materials? How have you reduced your carbon emissions this year? Is your product palm oil free? 

These regulations, though a tough adjustment in the short-term, push marketing toward messaging that is clear and specific in the long-term. That’s ultimately a good thing. 

New B Lab Standards 

Ironically, the B Corporation movement was designed to solve the problem the ECGT is now trying to fix, since B Corp certification should signal external validation that your company meets the highest environmental and social standards in the industry.  

But B Lab, the global non-profit that awards B Corp status, is no stranger to criticism, with various purpose-led organisations accusing the B Lab of complicity in “greenwashing” companies with questionable reputations. 

B Lab has responded to these critiques by unveiling a new system designed to raise the bar for certification – which could see dozens of B Corps lose their status this year. 

Instead of one overall score, B Corps will now be required to meet minimum requirements across seven impact topics: (1) Purpose and Stakeholder Governance, (2) Climate Action, (3) Justice, Equity, Diversity, and Inclusion, (4) Government Affairs and Collective Action, (5) Fair work, (6) Human Rights, and (7) Environmental Stewardship and Circularity. Previously, if a company fell short in one category, they could make up points through high scores in other areas. 

Larger companies will also face more extensive requirements, including on tax policies, supply chains, emission targets, and executive remuneration schemes. 

Conveniently, these new standards will bring the B Lab in line with the ECGT – so if a company wants to continue using the B Corp logo on their EU products, they must recertify under the new standards by 27 September, regardless of their original recertification due date, filing their initial submission by 15 July. 

So if you do lose your B Corp status, don’t panic. It’s expected that some companies will lose their status during recertification, but there will still be opportunities to establish yourself as a purpose-led brand. 

To become a B Corp in the first place, you had to meet high ethical standards in at least one area of your business. In your messaging, lean into the work you’ve already done, and be transparent about how you’re still working to improve.  

But in the meantime, if you’re worried you might lose your B Corp status, start drafting a comprehensive communications plan now. Get in touch with PLMR to talk through crisis planning and response, so you can be prepared for any possible outcome. 

Is it even worth talking about sustainability anymore? 

There’s no doubt that talking about sustainability just got harder. But at the end of the day, demonstrating high social and environmental standards is still good for business – good values build good companies, resilient supply chains, and a loyal customer base that actively seeks out your products and recommends them to others.  

That’s why striving to be a better, more ethical business is worthwhile, even if you haven’t yet managed to break into the top 1% quite yet.  

Transparency will build trust, so take customers along with you on your sustainability journey: collect robust data, talk openly about the groundwork you’re laying, and give customers a clear sense of where you’re trying to get and how you’re trying to get there. 

That way, when you reach the point where you can confidently make sustainability claims, with the data to back it up, your customers will know you’re not selling them snake oil – and they’ll reward you for it.