The sustainability communication landscape is changing rapidly. Regulators across the EU are tightening rules on environmental claims - reacting to the fact that more than half of today’s sustainability claims are vague or misleading.

New frameworks such as the Empowering Consumers Directive and the proposed Green Claims Directive aim to protect consumers and promote true transparency.

At KPMG ESG Advisory, we help organisations understand these new expectations, avoid reputational and financial risks, and turn credible sustainability communication into a competitive advantage.

Why Greenwashing Matters Now

Legislative pressure is growing on two fronts:

1. EU Legislation

The EU is introducing two key directives that significantly raise the bar for environmental communication: the Green Claims Directive (GCD) and the Empowering Consumers for the Green Transition Directive (ECGT). Together, they reshape what companies can claim about sustainability. (Note: While the European Commission announced its intention to withdraw the Green Claims Directive in June 2025, it has not been formally withdrawn. Its future remains uncertain, but the antigreenwashing obligations it introduced are still highly relevant, as the Empowering Consumers for the Green Transition Directive (ECGT) and national rules including Slovakia.)

If your company makes environmental claims, these directives require transparency, scientific substantiation, and credible labeling. No more vague promises. No more unverified sustainability slogans.

ECGT in particular bans generic environmental claims and misleading “climate-neutral” statements based on offsets, ensuring that consumers receive reliable and meaningful information. Both directives share the same objective: enabling consumers to make trustworthy, informed decisions based on clear and verifiable environmental information information.

2. Slovak Greenwashing Ban (effective 27 September 2026)

Slovakia is introducing its first explicit legal ban on greenwashing through the Amendment to the Consumer Protection Act.
Environmental claims are defined broadly - including textual, visual, symbolic or branded elements that imply positive environmental impact.

The law prohibits:

Claims without clear, verifiable evidence (e.g. eco, green, climate‑neutral, sustainable when unsubstantiated)
Claims based on carbon offsetting that imply neutrality or reduction without recognised proof
Visual elements (green colours, leaves, globes, ecostyle branding) that suggest environmental benefits without evidence

The law also introduces formal definitions for sustainability labels and certification systems, requiring transparent criteria, public availability of requirements, fair access for all traders, and independent third‑party verification.

Misleading environmental or sustainability communication is officially classified as an unfair commercial practice. Supervisory authorities can investigate, request data, and impose sanctions.

Your Greenwashing Compliance Checklist

To comply, your company must:

Validate current environmental claims
Substantiate claims scientifically
Seek independent verification & certification
Ensure transparent communication
Eliminate misleading language

Companies making voluntary environmental claims like "climate-neutral" or "ocean-friendly" must now meet stricter requirements. Claims must be based on scientific evidence and clearly specify what part of the product or lifecycle they refer to. Comparisons with other products must use equivalent data and methods. Ecolabels must follow EU standards for transparency and scientific assessment. To help consumers make informed choices, companies must provide clear usage and disposal instructions and make claim details accessible via web links or QR codes.

The Risk of Inaction – What is Required

Failure to comply can result in reputational damage, regulatory penalties, and lost consumer trust. With the proliferation of ecolabels and inconsistent standards, navigating this landscape alone is risky.

Environmental claims must be independently verified before publication and regularly reviewed and updated.

How KPMG ESG Advisory Can Help You

KPMG’s ESG Advisory Team is your trusted partner in turning compliance into a competitive edge.

We offer:

Rapid gap analysis of your environmental claims
Independent verification of labels and claims
Training programs for marketing and compliance teams
Strategic integration of sustainability into your core operations

KPMG’s ESG Advisory Team supports companies in building credible, compliant, and opportunity driven sustainability communication.

Client Success Story: European Manufacturing Firm

With KPMG’s support, the company redesigned its environmental claims and introduced a transparent process for verifying them. This allows the firm to communicate sustainability more clearly, accurately, and without greenwashing risks. The project also strengthened internal guidelines to ensure all future claims are consistent and backed by reliable data.

Result: full compliance, stronger customer trust, and higher competitiveness in B2B tenders.

The Challenge of Greenwashing

The challenge of greenwashing: an international regulatory overview

The overview provides a comparative analysis of how different countries and territories are addressing greenwashing, ranging from targeted legislative measures to broader regulatory frameworks and notable enforcement cases.

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