How do companies need to change to meet the Green Claims Directive? - A study about eco-labels in the chocolate industry

Abstract

Sustainability has become an increasingly important issue for businesses, since the consumers demand a greater transparency of their sustainability practices. In order to avoid companies' use of greenwashing, the European Union has proposed the Green Claims Directive, which aims to regulate companies use of environmental claims and eco-labels. This study investigates how companies in the chocolate industry, Marabou, Fazer and Lindt & Sprüngli, use eco-labels and if their current practices measure up to the upcoming requirements in the Green Claims Directive. In the study a qualitative gap analysis is performed to examine the companies sustainability reports and labelling schemes in relation to the Directive’s requirements. The result shows a difference between self-created labels, such as Cocoa life and the Lindt & Sprüngli Farming Program, and third-party certified labels like Rainforest Alliance and Fairtrade. The third-party certified labels are most likely to comply with the Directive while the company-created labels are lacking in transparency and full third-party certification. This suggests that without adjustments the companies risk noncompliance with the Directive and accusations of greenwashing. Hence, transparent, trustworthy and verifiable labelling is essential to meet the Green Claims Directive.