Climate neutral or climate certified: the differences
Climate neutrality and climate certification are two different approaches to combating climate change. While climate-neutral companies ideally reduce their greenhouse gas emissions and offset the remaining emissions, companies with climate certification receive an official certificate that confirms their efforts to reduce greenhouse gas emissions in a transparent and verifiable manner.
Remaining emissions can be offset (compensation measures) through forest protection and reforestation projects or renewable energy projects, for example.
Why the use of the term ‘climate neutral’ is problematic (as of December 2023)
The term ‘climate neutral’ is often considered misleading by critics, as it suggests that there are no negative effects on the climate. Compensation measures (offsetting emissions), in turn, are often controversial if they are not transparent and verifiable. In addition, the focus on climate neutrality may distract from the need to reduce actual emissions.
By using green claims (environmental statements such as climate neutral), many companies may present themselves and their products as more sustainable than they actually are. The problem with green claims is that they often contain vague, misleading or unfounded information. In most cases, this information cannot be verified or checked by the end customer. As a result, any company can describe itself as ‘climate neutral’ and design its own “sustainable” label and claim – without anything being checked. This ‘green image’ is intended to influence consumers' purchasing decisions and thus increase profits. This is exactly what is known as greenwashing.
This lack of uniform guidelines has led to there now being over 230 different sustainability labels in the EU that are not regulated.
However, there is also good news, as in March 2023 the European Commission published a draft EU directive on environmental claim, to reduce greenwashing. Among other things, the directive will only allow sustainability labels that are based on official certification systems or have been introduced by the government. Companies that violate the guidelines will face fines and confiscation of products and income. If everything remains on schedule, all affected companies must have made all adjustments by mid-2027 at the latest.
(As of december 2023)
Green claims and the new EU directive
The vast majority of green claims relate to packaging, the product itself or its ingredients and/or generic company processes – meaning that no product is immune to greenwashing. And this, in turn, means an endless array of greenwashing pitfalls for the end consumer.
This is confirmed by the recently published State of Green Claims 2024 (click here for a free download in german) by House of Change, The Goodwins and Popular Packaging. In December 2023, 163 green claims from 78 brands in the German retail sector were examined – only 3 of them complied with the draft of the new EU directive.
Summary of the draft:
1. Green claim
Among other things, a ban on ‘general statements’ and ‘misleading information about environmental properties’ – such as ‘We live sustainability’ or ‘Packaging made from 94% plant-based materials’.
2. Explanation
The explanation of the green claim must be positioned on the packaging in a clear and prominent manner.
The explanation must contain, in understandable language, how the improvements that are the subject of the green claim are achieved.
3. Proof
Proof of the explanation of the green claim must be placed on the packaging via QR code or link.
The proof must be verifiable on the basis of specific and relevant data.
4. Verification
The verification must be verifiable, specific and independent, preferably through a certificate of conformity from a certified testing body.
If you would like a better overview of the draft, you can click here.
How can you, as an end consumer, protect yourself from greenwashing?
Below, we have listed what to look out for and what you can do if a product appears to be greenwashed:
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- A quick search on the internet will often provide an answer; you can also do this conveniently on your smartphone while in the shop.
- Be wary of words such as ‘organic’ and ‘environmentally friendly’ – for these to be meaningful, they should always be accompanied by an official seal/label.
- The same applies if the packaging is particularly green or made from environmentally friendly material – this does not necessarily mean that the product is actually sustainable.
- It is also often stated that the packaging is made from recycled material. If there is no number here, you should be wary. If a number is given, it must be verified by appropriate proof/seal.
- Be careful with so-called in-house labels. If you discover a sustainability label that only appears in a certain shop, it is best to do some more research.