Time to Take Leadership: Trust and Transparency in the Era of the Green Regulation
Five years ago, I co-authored a pioneering book on the role of brand and communications professionals in addressing the climate crisis. While the book was reflective and critical, its tone was optimistic and encouraging. It made the case that private enterprise and the business community, rather than governments or nation-states, were the most effective actors in tackling climate challenges.
Fast forward five years, and two things are clear. We have yet to solve the climate crisis, and instead of free markets leading the charge, the European Union is placing increasing faith in regulation. While markets outside Europe may operate under more relaxed regulatory environments, my recent discussions with partners, clients, and experts in the U.S., Latin America, and China confirm that the EU Green Claims Directive is redefining the rules of engagement. As a top business school professor I talked to in New York poignantly put it, the directive has "the potential to become a world law for all and any business wishing to expand internationally."
Understanding the Green Claims Directive
The EU Green Claims Directive, first proposed in 2023 and adopted as a general approach later that year, gives EU member states 24 months to implement it into national law, with full enforcement set for 36 months. The directive establishes rigorous standards for businesses making environmental claims about their products and services. It demands that statements like “100% biodegradable” or “eco-friendly” be scientifically substantiated and transparently communicated, with all labels verified by an accredited, independent third party. In brief, this it what you and your clients are looking at:
1. Scientific Substantiation of Claims
Businesses can no longer make vague or misleading statements without proof.
2. Transparency and Clear Communication Information on environmental impact must be easily accessible to consumers.
3. Mandatory Third-Party Verification
This eliminates the risk of self-declared, unsubstantiated claims.
4. Alignment with the EU Taxonomy and Standardized Criteria
Environmental claims must adhere to standardized criteria to create a level playing field for businesses.
5. Strict Enforcement and Penalties for Non-Compliance
Member states will enforce the directive through national laws, and businesses that fail to comply will face fines, reputational damage, and potential bans on misleading claims.
Unsurprisingly, most large and many mid-sized companies with professional communication and PR resources are not waiting until 2026. Significant shifts in communication and business practices are already underway. The most active industries include energy, food, fashion, and mobility, though no sector is exempt.
A Fundamental Shift in Communications
As businesses adapt their marketing and storytelling strategies, it has become clear that this exercise is not just about early compliance. It is about rethinking the foundation of sustainability communication—moving away from broad claims and toward narratives rooted in measurable impact, backed by trust and verifiable proof.
This emphasis on trust and transparency coincides with heightened consumer skepticism—not just about sustainability claims but also about broader corporate influence, including the use of AI and other emerging technologies. For PR professionals, this is a defining moment—an opportunity to build credibility through transparency and authenticity.
What Your Clients Will Ask in 2025
1. Your client CEO will ask: How do we turn compliance into a competitive advantage, strengthening our market position while meeting regulatory expectations?
2. Your client Chief Sustainability Officer will ask: How do we align our sustainability initiatives with communication strategies that are both legally compliant and compelling?
3. Your client Chief Customer Officer will ask: How do we ensure our brand narrative remains compelling while avoiding greenwashing risks?
4. Your client Chief Legal Counsel will ask: What frameworks and verifications are necessary to mitigate regulatory risks and legal challenges?
5. Your primary client contact will ask: What does the Green Claims Directive mean for our communication strategy, and how should we prepare for increased scrutiny?
The Path Forward
The Green Claims Directive is more than a regulatory milestone—it provides a framework to measure, manage, and ultimately, inspire trust in ways that go beyond compliance. Now more than ever, PR professionals must lead the way in ensuring that sustainability narratives are both impactful and rooted in truth.
As we move forward, let’s remember: studies show trust is not built on perfection—it is built on integrity and accountability. And there, we as communications professionals are best positioned to help.
Petteri Lillberg is a seasoned leader in strategy, communications, and management consulting, with a track record of guiding organizations through complex transformations. His expertise spans advising publicly listed companies, global brands, ministries, and government agencies, helping them innovate, break new ground, and integrate sustainability into core business strategy to drive lasting impact. Currently, Petteri serves as the Director for Sustainable Business at Knowit, a leading Nordic management and technology consultancy, where he helps organizations navigate the evolving sustainability landscape with data-driven strategies and regulatory foresight.
Article published as part of Global Alliance´s Responsible Communication: Ethics First Month 2025.
Any thoughts or opinions expressed are that of the authors and not of Global Alliance.