Regulators are tightening their grip on misleading environmental claims. Fast-fashion giant Shein has been fined €1m by Italy’s competition authority (AGCM) for “vague, generic, or misleading” sustainability messaging. The penalty comes just weeks after a €40m fine from France for similar deceptive commercial practices. Greenwashing risk is increasing as companies move towards meeting consumer preferences for sustainable products.
In this article we explore how companies can ensure they use verified information to market their products and reduce the risks of being accused of greenwashing.
Greenwashing
Environmental messaging is no longer just a marketing activity, it is a legal risk. Businesses continue to make high-level sustainability claims that are poorly defined or lack evidence. Regulators now see this as a systemic trust issue.
In Shein’s case, claims about circularity, recycling, and sustainable materials were found to be overstated or false, creating the impression that products were more environmentally friendly than they actually were. The investigation highlights a shift where generic language is no longer tolerated, and unsubstantiated claims are being penalised.
New instruments such as the EU Green Claims Directive and Ecodesign for Sustainable Products Regulation are setting a higher bar. They require that claims about a product’s environmental impact be specific, accurate, verifiable, and not misleading.
Shein is not an outlier. Businesses across industries, including apparel, food, beauty, and electronics, face increasing legal and reputational risk. Vague claims like “eco-friendly”, “sustainable”, or “responsibly made” are now regulatory red flags unless fully substantiated.
Risk Management
Managing greenwashing risk requires more than cautious language. It demands robust governance, evidence-based processes, and cross-functional alignment. This is now a board-level issue with exposure across legal, regulatory, reputational, and commercial dimensions.
Key areas of focus are:
Cross-functional governance – Legal, sustainability, compliance, and marketing must work together. All environmental claims should be subject to a defined internal approval process.
Evidence-based claims – No claim should be made without verifiable, traceable data. This includes life cycle assessments, third-party certifications, or product-level emissions data.
Audit trail of claims – Maintain a central record of every claim made, supported by the data and approvals used to justify it. This is critical if regulators investigate.
Scenario testing and risk reviews – Regularly test claims against current regulatory expectations, particularly when entering new markets or launching new products.
Training and internal awareness – Equip marketing and product teams to understand where creative messaging ends and regulatory risk begins.
Horizon scanning – Monitor developments in the Green Claims Directive, Ecodesign Regulation, and UK CMA guidance to ensure compliance is forward-looking, not reactive.
Addressing these areas requires investment in systems, data, skills, and leadership. Companies that fail to adapt risk penalties, consumer backlash, and damaged brand equity.
How Jordisk can help
At Jordisk, we help businesses to manage greenwashing risk by integrating sustainability into product strategy and communications. We focus on building a strong foundation of data, governance, and compliance.
We support our clients by:
Auditing green claims to ensure they are specific, verifiable, and aligned with current regulations.
Establishing data and reporting systems to support product-level environmental claims.
Running eco-design programmes that align R&D with sustainability goals.
Advising on enabling technologies such as Digital Product Passports for traceability and compliance.
Ensuring product and marketing strategies are future-proofed against EU and UK regulatory shifts.
In a market where environmental claims are under increasing scrutiny, Jordisk helps you stay ahead by turning compliance into competitive advantage.
