Climate
Stricter Rules Against Greenwashing: Fines Up to 900,000 Euros
New European EmpCo Directive rules prohibit unsubstantiated environmental claims such as 'climate neutral' or 'ecological,' imposing fines of up to 900,000 euros or 10 percent of annual turnover. The Netherlands Authority for Consumers and Markets (ACM) enforces these regulations, which aim to reduce misleading practices estimated at 42 percent by the European Commission in 2020. Companies must now substantiate sustainability labels with independent verification and transparency. Legal expert Sjoerd Lopik notes that businesses are currently struggling with the practical application of these open norms, expecting the first year to be particularly challenging as firms determine their compliance strategies.
Ozetta summarises; the reporting is the newsroom's