Companies throughout the EU have ten days left to justify claims about their products being ‘eco-friendly,’ or face penalties – according to a leaked draft plan addressing inflated environmental credentials across the board. Claims about businesses’ products being ‘sustainable’ have grown in recent years, with an EU survey finding that 53% of environmental product claims were ‘vague, misleading or unfounded.’

These sustainability claims are being slapped on products that don’t fully qualify – just to get them off shelves, as environmental awareness became a selling point. The plan urges transparency, public disclosure of claims, and the enforcement of fines for companies that take part in misleading consumers. The commission expects the draft law to save the equivalent of up to seven million tonnes of CO2 emissions over the next 15 years as companies who are making these claims will now be forced to follow through on them, or stop making misleading products all together.

Not only will companies face penalties and fines for greenwashing, but they also run the risk of missing out on attracting new funding from investment groups that rely on extensive, accurate ESG reporting to guide where they place their funds. Businesses unsure of how to start their net zero journey or seeking guidance on best practices can get help to plan a way to a leaner, cleaner strategy for sustainability with SaveMoneyCutCarbon, Britain’s leading sustainability and money saving platform, who are offering a free 30-minute Carbon Mentor call to to give expert guidance on where to start, what ROI to expect, how to manage budgets and what could be achieved through green initiatives.

The British Chambers of Commerce project that less than half (43%) of UK firms are expecting profitability in the next 12 months, whilst 1-in-3 hospitality and leisure businesses fear closing this year due to the inability to afford energy costs, according to eEnergy. In the wake of this setback, a new study from SaveMoneyCutCarbon has found that over half (51%) of employers in the UK still don’t know where or how to start reducing their carbon emissions. This is supported by research from Ecologi, which found that 42% of SME owners in the UK believe that it’s important to be sustainable, but struggle because of a lack of guidance.