New EU legislation – the Corporate Sustainability Reporting Directive (CSRD) and the EU Green Claims Directive – is to tighten sustainability reporting and combat greenwashing.
The purpose of the legislation is to enhance transparency, accountability and sustainability in business practices. All UK businesses with operations or a market presence in the EU are affected.
The Cleaning & Hygiene Suppliers Association (CHSA) has published a Fact Sheet explaining the legislation and its implications for manufacturers and distributors in the cleaning and hygiene industry.
The CSRD increases transparency, mandating detailed reporting on sustainability risks, opportunities and impacts using a double materials approach. This means it considers the impact on the company and its external effects on society and the environment. The CSRD is to be implemented in phases, the final group – listed small and medium-sized enterprises – needing to comply from 1 January 2026. The penalties for non-compliance, which will vary by member state, will include fines, reputationally-damaging public disclosure and civil liability for damages.
The EU Green Claims Directive is aimed at ensuring environmental claims made by businesses are accurate, verifiable and transparent. To be compliant, companies must use clear, evidence-based criteria to substantiate their environmental claims. Environmental claims must be verified by independent, accredited third-party organisations before they can be made public. There must be transparency in labelling and new rules to ensure both public and private environmental labelling schemes are solid transparent and reliable.
For more information, you can review the CHSA’s new Fact Sheet on its website.
