Authors: Awwal Idris (Environmental Expert, Water Revolution) & Nikos Avlonas (President, Center for Sustainability & Excellence)
It’s increasingly common for buyers to encounter advertisements promoting products as sustainable or eco-friendly. Such claims, often referred to as “green claims,” are being noticed in the yachting industry as well. With numerous producers, manufacturers, and suppliers eager to gain a marketing edge by labeling their products as green or sustainable, the new Green Claims Directive will influence how companies, also in the superyacht and maritime sectors, can communicate about the environmental credentials of their products or services. This new directive seeks to eliminate the deceptive practice known as greenwashing.
Addressing greenwashing with the Green Claims Directive
Greenwashing is a trend where companies deceive consumers with exaggerated or misleading environmental claims to influence their purchasing decisions. To address this issue, the European Union has introduced the Directive on Unfair Commercial Practices (Directive 2005/29/EC). This legal framework aims to safeguard consumers from deceptive green marketing tactics, and would also impact the superyacht industry in a number of ways.
Many EU member states have already integrated the provisions of the Green Claims Directive into their national laws and regulatory frameworks related to consumer protection and advertising standards. However, the extent to which these laws are enforced and the effectiveness of enforcement mechanisms can differ between countries.
How it could impact the superyacht industry
Clarity in Advertising: The directive would require that any environmental claims made by superyacht manufacturers or sellers be clear, accurate, and substantiated. This means that vague or exaggerated claims about a yacht’s environmental friendliness would be prohibited, reducing the potential for greenwashing.
Increased Accountability: Superyacht companies would need to provide evidence to support any environmental claims they make about their products. This could include data on emissions, fuel efficiency, use of sustainable materials, or any other eco-friendly features. This increased level of accountability would prevent companies from engaging in greenwashing.
Consumer Protection: The directive aims to protect consumers from being misled by false or exaggerated environmental claims. Superyacht buyers would have more confidence that the environmental benefits touted by manufacturers are genuine, leading to better informed purchasing decisions.
Reputation Management: Superyacht companies found to be engaging in greenwashing could face damage to their reputation and credibility. With increased scrutiny and regulations in place, companies would be incentivized to ensure their environmental claims are accurate to maintain trust among consumers and stakeholders.
Shift towards Genuine Sustainability: The directive could drive a shift towards genuine sustainability efforts within the superyacht industry. Companies may invest more in environmentally friendly technologies, materials, and practices to differentiate themselves in the market without resorting to greenwashing tactics.
Moving forward
Overall, the Green Claims Directive will likely have a positive impact on reducing greenwashing in the superyacht industry by promoting transparency, accountability, and genuine environmental stewardship. Third-party proofing of claimed sustainability credentials will shape the communication practices of the superyacht industry in 2024 and beyond, and all communication experts in Europe may need to attend courses in order to educate themselves on the legal risks of greenwashing.