Green Claims Directive

A proposed EU directive to combat greenwashing. It requires companies to substantiate their environmental claims with clear, science-based evidence, verified by a third party. Vague terms like 'eco-friendly' without proof will be banned. Violations can lead to penalties up to 4% of annual turnover, posing major financial and reputational risks.

In Enterprise Risk Management (ERM), the directive represents a significant compliance and operational risk. Companies must establish robust internal controls to verify all green claims. Failure to comply can result in legal penalties, financial losses, and reputational damage. ERM strategies should include dedicated oversight, employee training, and supply chain due diligence to mitigate these risks.

Taiwanese exporters to the EU face challenges in data collection and verification. Many SMEs lack resources for methodologies like Life Cycle Assessment (LCA). Finding accredited verifiers is another hurdle. Solutions include investing in data management systems, seeking expert consultation, and collaborating with supply chain partners to build a compliant data trail.

Winners Consulting specializes in Green Claims Directive for Taiwan enterprises, helping build compliant systems within 90 days.