The European Commission’s proposed Green Claims Directive will benefit consumers but bring additional work for businesses

At the seminar of the University of Tartu’s Disinformation Cooperation Platform, the topics of greenwashing and sustainability were discussed from the perspectives of scientific research, European regulations, and business practice. Helen Poltimäe, lecturer at the University of Tartu School of Economics and Business Administration, and Viire Viss, ESG lead at Sportland and the FIFAA Group, explained the choices and challenges faced by companies operating in a business environment that increasingly seeks to account for environmental change.

According to Helen Poltimäe, lecturer at the University of Tartu School of Economics and Business Administration, the shift toward responsible business practices was already initiated in the 1960s. Awareness of the importance of sustainability principles has steadily grown, and many companies strive to act in a more environmentally friendly manner. It is common for products to carry labels intended to inform consumers about their environmental friendliness. However, when looking at the wide variety of labels on the market, it becomes apparent that in trying to assist consumers, companies may, in fact, confuse them. In addition to responsible producers, there are also those who refer or allude to the environmental friendliness of their products, even though they do not actually follow sustainability principles.

Poltimäe pointed out that so-called greenwashing, or the presentation of misleading environmental claims, has become one of the major communication problems, as companies’ desire to appear environmentally friendly is often greater than the actions they actually take. “Greenwashing does not necessarily mean making a false statement. It can also involve simply creating a background for one’s logos or websites—for example, using green colours or natural imagery on packaging to give the impression of an environmentally friendly product,” said Poltimäe.

According to European Commission studies, more than half of the environmental claims reviewed in online stores are misleading or unfounded. Therefore, the Commission has moved toward sustainability certification and standardisation, in order to establish uniform criteria for preventing greenwashing. Although negotiations on the directive have been postponed, the Empowerment of Consumers Directive has already entered into force, prohibiting the presentation of unsubstantiated environmental claims.

Viire Viss, ESG lead at Sportland and the FIFAA Group, explained how consideration of environmental impact and social expectations affects the daily operations of a retail company. She emphasised that consumers increasingly expect transparency, while companies must undertake thorough work in presenting and verifying information. “The most important thing is that communication should be based on facts, not emotions. If we claim to use renewable energy or reduce greenhouse gas emissions, there must be verifiable evidence for that,” stressed Viss.

Viss also pointed out practical challenges related to the presentation of product-specific environmental claims. For a company like Sportland, it is a challenge to verify the environmental claims of all the brands it sells and to highlight the best ones. “We receive a myriad of tables with information on the products of various brands, which are not standardised at all. Nor do we have access to all the environmental certification labels of global brands, of which there may be several in a product’s supply chain.” Viss hopes that the different brands whose products Sportland sells will make information more easily accessible in the future, while she expects consumers, in turn, to be conscious and make informed choices.

The seminar “Green Claims: Where Is the Line Between Useful Information and Greenwashing?” took place on 8 October 2025. The event was organised by the University of Tartu Institute of Social Studies in cooperation with the School of Economics and Business Administration.

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