DairyReporter informs that the consultancy firm Leatherhead Food Research has warned that food companies need to take action now to ensure that their sustainability claims can withstand scrutiny from EU regulatory authorities if a draft directive comes into effect in 2024.

Eliminating unsubstantiated claims

The European Commission's directive on environmental claims aims to eliminate unsubstantiated claims on labels that may mislead consumers, giving a false impression of a company's environmental impact or benefits - a practice known as "greenwashing" - from credible and trustworthy environmental labels.

Leatherhead Food Research, a consultancy company that provides scientific and regulatory guidance to the global food and beverage industry, stated that businesses operating in the EU should act now to avoid potential reputational damage.

Meanwhile, operations in the UK have been told that the Competition and Markets Authority is already enforcing its own Code on environmental claims and announced in January 2023 that household products, including food and beverages, will be subject to scrutiny.

A profitable differentiator

The consultancy firm conducted research in Denmark, France, Germany, Greece, Italy, Spain, Turkey, and the UK among 10,234 adults to assess consumer attitudes towards environmental claims.

The results showed that 37% of adults purchased food products because of their environmental claims, while 34% said they chose a different brand due to environmental claims, and 30% chose a product that costs more than alternatives perceived as less environmentally friendly.

Mariko Kubo, Head of Scientific and Regulatory Affairs at the consultancy, stated to DairyReporter:

"Environmental claims are voluntary in the UK and the EU, so in some cases, the easiest option may be not to make any environmental claims until the legislation (especially in the EU) is clearer. Where environmental claims are made, they need to be presented in a specific, precise, and unambiguous manner, without omitting key information.

Scientific evidence

"All operators in the food sector, including dairy product manufacturers, will need credible scientific evidence to support their environmental claims and should be prepared to share this in a clear and understandable format if the claim is challenged.

"They should also ensure that the claims are backed by validated data where appropriate. A common pitfall, especially for environmental claims used in advertising but also relevant to label claims, is the failure to consider the entire life cycle of a product/food when making the statement.

Asked about the EU directive, Kubo said, "The EU directive is still in draft form, so we don't yet know what the final version will look like. However, there are common themes between the EU and the UK, namely that claims should be clear, not misleading, and supported by evidence.

"There is also a parallel with the proposed amendment to the EU Unfair Commercial Practices Directive and the UK Code on Environmental Claims - environmental characteristics or benefits that are actually legal requirements should not be the subject of advertising claims."