Regulations
Published on
June 27, 2025

Without Green Claims Regulation, Trust Will Depend on Data-Backed Climate Reporting

With the EU set to withdraw its Green Claims Directive, companies now need transparent, verifiable climate data to back up their climate efforts.

When the EU introduced the Green Claims Directive in 2023, it was meant to crack down on vague and misleading sustainability claims. But as of June 2025, the European Commission has announced plans to withdraw the proposal, a move that leaves a significant gap in climate accountability.

For businesses, this decision doesn’t reduce the demand for sustainability, it increases the pressure to prove it.

What is the Green Claims Directive?

Originally proposed in March 2023, the Green Claims Directive was designed to:

  • Prevent greenwashing
  • Set clear standards for sustainability communication
  • Require third-party verification of claims like “climate neutral” or “made from recycled materials”

In essence, it was about protecting consumers from misleading information and helping companies compete fairly on the basis of proven sustainability.

Now, with the withdrawal of the proposal, there’s no standardized EU-wide requirement to prove a product’s green credentials. But that doesn’t mean companies can stop caring about how they report their impact.

Why Trust Still Demands Transparency

Even without legislation, the pressure to communicate transparently remains strong.

  • Consumers are increasingly climate-conscious, and quick to question vague sustainability language.
  • Buyers and partners, particularly in B2B industries are asking for Scope 3 emissions data and full lifecycle impact.
  • Investors and financial institutions expect ESG alignment based on recognized reporting frameworks like CSRD or the GHG Protocol.

In this new environment, companies can’t afford to make empty promises.

The Shift to Verifiable Data: What Matters Now

With the regulatory framework uncertain, data is the only constant.

Sustainability teams and procurement leaders need to turn to science-based, traceable methodologies such as:

🔹 Product Carbon Footprints (PCFs)

A PCF measures the carbon footprint of a product across its lifecycle (cradle-to-gate or cradle-to-grave), providing a clear, quantifiable emissions profile.

🔹 Scope 3 Emissions Calculations

Indirect emissions from upstream suppliers to downstream use often make up the majority of a company’s total footprint. Accurate Scope 3 reporting is essential to meet expectations from value chain partners.

🔹 Life Cycle Assessment (LCA)

A standardized method under ISO 14040 and ISO 14044 for evaluating the environmental impacts of a product or service from raw material extraction to disposal.

These methods aren’t just for compliance they’re also business tools for:

  • Winning tenders that require climate credentials
  • Avoiding reputational risk
  • Demonstrating leadership in the transition to low-carbon operations

ReFlow’s Role in Verifiable Climate Reporting

At ReFlow, we specialize in helping companies deliver clear, trustworthy climate data using:

  • ISO-compliant Life Cycle Assessments
  • Product Carbon Footprint modeling
  • Digital platforms that quantify emissions reporting

Whether or not the Green Claims Directive moves forward, the companies that invest in verifiable carbon data will gain a competitive edge in procurement, brand trust, and long-term sustainability leadership.

Looking Ahead

Green claims may no longer be regulated, but transparency is still rewarded. This is a unique opportunity for forward-thinking companies to stand out by backing every claim with science, not slogans.

FAQ

Why is the Green Claims Directive being withdrawn?

The European Commission cited concerns about complexity and burden on small businesses after political pressure from Parliament.

Does this mean companies no longer need to report emissions?

Not necessarily. Regulations like the CSRD and investor pressure still drive the need for emissions reporting, especially for Scope 3.

How can my company stay credible without regulation?

Use science-based tools like LCA, PCFs, and Scope 3 calculations to communicate your sustainability strategy transparently.

Where does ReFlow come in?

We help businesses calculate and communicate verified climate data using ISO-compliant methods and easy-to-use digital tools.

We provide your CO₂ data

ReFlow was founded to transform environmental performance with data-driven life-cycle analysis, empowering better climate decisions.
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