EU Parliament Backs Sustainable, Durable Products Sans Greenwashing

On first glance, this article in ESG News appears to be of the “dog-bites-man” variety. It would not be very interesting to hear that a government supports products that last and do not make false claims. On closer inspection, though, there is more to it. The Parliament’s mandate anticipates banning the use of environmental claims that lack detailed supporting evidence, as well as banning environmental claims that are based solely on carbon offsetting schemes. The bans potentially put policy teeth (rather than purely enforcement power) into the push to require substantive effort from firms making environmentally friendly pronouncements. Along with the expected bans, European leaders envision permitting the use of sustainability labels only if they are based on official certification schemes or established by public authorities. As for the element of this that casts a shadow on carbon offsetting schemes, it rings consistent with the not-so-subtle march against the use of fossil fuels. Stay tuned for more developments in carbon offset markets, as well as what surely will be a faster pace in the race for certification schemes that are trustworthy enough to pass muster.