Better Cotton has called on the European Union for clarity on new laws requiring companies to prove environmental claims to show they aren’t greenwashing.
In a document submitted to the EU this week, Better Cotton said it supports the directive, issued in March, which requires companies to make verifiable information available on their sustainability credentials.
This is in response to legislative proposals introduced by the EU that directly address the widely acknowledged negative environmental impacts of the textile industry. The proposed laws are designed to protect consumers and businesses in the face of a rise in deceptive practices that have caused consumers to question sustainability claims and hindered them from making informed purchasing decisions.
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Better Cotton, the world’s largest cotton sustainability initiative, also addressed the Green Claims Directive in its feedback to the EU, asking that it align with the Directive on Empowering Consumers for the Green Transition (Empowering Consumers Directive), also introduced in March. One issue in question is whether labels would be required to comply only with the Empowering Consumers Directive or if they would be covered by the Green Claims Directive.
Better Cotton said it supports the EU’s decision not to limit claim substantiation to one standard, like the Product Environmental Footprint (PEF) or Life Cycle Assessment (LCA). It said that to do so would fail to cover every aspect of cotton production and compromise a company’s ability to make claims about its commitment to more sustainable cotton.
Lisa Ventura, Better Cotton’s public affairs manager, noted how flexibility will be needed to adapt the rules to so many categories and work situations.
“Maintaining flexibility is the only way to favor a just transition across the world and enhance sustainable livelihood,” she said.
Better Cotton added that it supports the need for strict guidance on how sustainability claims are made to the public. The organization provides its own standards through the Claims Framework, part of its Cotton Standard System, established by consensus among eligible members. It allows those members to accurately and coherently inform consumers about their investment in Better Cotton, which in turn strengthens their commitment to grassroots programs to improve environmental, social and economic situations for cotton farmers and their communities.
Better Cotton is gearing up for coming changes in EU reporting regulations announced two years ago. When the Corporate Sustainability Reporting Directive (CSRD) takes effect, all companies selling goods in the European market will be subject to EU-wide Sustainability Reporting Standards (ESRS). The stringent non-financial reporting rules center on Environment, Social and Governance (ESG) issues and align with the Paris climate agreement. They will also be reporting on water and chemical usage, worker wages and gender pay gaps.
