The European Union recently granted businesses an additional year to prepare for the EUDR legislation focused on deforestation-free products. California also gave companies more time to comply with new climate reporting regulations. While these extensions provide businesses with some breathing space, they also highlight the complexity of these rules, particularly for smaller companies. However, the core message remains clear: tackling climate change requires collective action and collaboration. In this blog, we discuss the sustainability regulations coming into effect in 2025 and how your business can comply while making a positive impact.
As you are aware, the UK Green Claims Code was introduced some time ago. This code provides clear guidelines for businesses to ensure that their environmental claims are accurate, transparent, and not misleading. The code focuses on protecting consumers from false or exaggerated sustainability claims and promoting fair competition. Key principles include being truthful, providing clear and relevant information, considering the full lifecycle of a product, making fair comparisons, and backing claims with robust evidence. Now, a new European regulation—the EU Green Claims Directive—has been introduced, building on similar principles but with a slightly different approach. This directive will also impact UK businesses trading with the EU.
For UK businesses, compliance with the Green Claims Code is essential to maintain consumer trust and avoid legal or reputational risks. If your company is already adhering to the Green Claims Code, you are well on your way. However, it’s crucial to note that the EU Green Claims Directive introduces slight differences, which require you to assess your current practices and make adjustments where necessary.
The EU Green Claims Directive aims to prevent greenwashing by requiring businesses to substantiate their claims with clear, verifiable evidence. Like the UK’s Green Claims Code, this directive ensures transparency in environmental messaging and promotes fair competition. However, the directive introduces additional specificities that UK businesses must prepare for if they wish to trade in the EU market. This directive applies to all companies offering products or services in the EU and is particularly important for UK exporters. For businesses, vague or unfounded sustainability claims could result in fines and reputational damage. However, it also create opportunities: Businesses that communicate their sustainability initiatives clearly and credibly enhance trust in the brand and differentiation. For smaller businesses, this is particularly important as reputational damage has a greater impact compared to larger companies.
The directive aims to prevent greenwashing—falsely portraying a product or service as environmentally friendly. Businesses must:
The law is designed to help consumers make informed choices and create fair competition among businesses.
If your business is already compliant with the UK Green Claims Code, this is a strong foundation to build on. However, the EU Green Claims Directive introduces some nuances you should address to ensure complete alignment.
By adopting these steps, you’ll not only comply with EU requirements but also enhance your brand’s credibility in a market that increasingly prioritises sustainability. This dual compliance will position your business strongly in both the UK and EU markets.
The Regulation on Deforestation-Free Products (EUDR) will take effect on 30 December 2025, significantly impacting companies trading with the EU. This regulation prohibits products contributing to deforestation or forest degradation from entering the European market. Businesses must prove their products and raw materials are not sourced from recently deforested areas. Although small companies have a transition period until June 2026, preparation is crucial. Implementing a due diligence system and thoroughly analysing your supply chain can help avoid fines and trade disruptions. Additionally, it strengthens your sustainable image and ensures continued access to the EU market. Read our blog for a detailed explanation of the EUDR.
Even though the United Kingdom is no longer part of the European Union, the EUDR remains highly relevant for UK companies trading with EU countries. UK businesses exporting raw materials or products to the EU must comply with this regulation to retain access to the European market. Complying with the EUDR is not only about securing market access but also about preparing your business for similar legislation anticipated in the UK. Although the exact timeline for the UK's deforestation-related legislation is not yet confirmed, aligning with the EUDR now allows you to address both EU and potential UK requirements simultaneously. In other words, by preparing for the EUDR, you’re taking proactive steps to ensure compliance with future UK regulations as well—effectively addressing both challenges in one go.
Sustainability is a collective effort, and at Eevery, we are here to guide your business towards a more sustainable future. With our tool, we make it easy for you to enhance your sustainability. Contact us today and discover how we can support your sustainability efforts. Together, we can make a difference!