EU Green Deal Compliance & Testing

The EU Green Deal places a strong emphasis on social justice. For businesses, this means protecting workers throughout supply chains. On a broader level, it's about improving living conditions and access to healthy environments - both in and outside the workplace.

To protect workers, suppliers must follow ethical labor practices including fair wages, safe working conditions and no forced or child labor.

To protect communities, companies must assess their environmental impact and take action to mitigate environmental harm. This means reducing carbon emissions, cutting waste, avoiding harmful chemicals in products and improving resource efficiency throughout their operations and supply chains. 

Companies should prepare to comply with CSDDD rules by 2028.

The Eco-Design regulation requires companies to make products that are more sustainable, durable and recyclable. It also puts a new restriction on the treatment of unsold products.

Requirements include adopting innovative recycling techniques, reusing materials and designing products that minimize environmental impact throughout their lifecycle. Brands and suppliers will also need to invest in new green technologies (e.g. waterless dyeing).

Carbon emissions have a price. The CBAM aims to prevent evasion of EU environmental regulations (e.g. through offshoring). It will tax high-carbon imports, making unsustainable production more costly.

Suppliers in and outside the EU must meet EU environmental standards, such as limiting water use and reducing emissions.

• As of 2023, importers must report greenhouse gas emissions embedded in their goods
• By 2026, importers must purchase CBAM certificates to offset those carbon emissions

Manufacturers can lower their supply chain's carbon footprint by adopting renewable energy and cleaner technologies.

A key part of the EU Green Deal is switching to a circular economy and phasing out single-use products. Products must be reusable, repairable and recyclable, with minimal impacts on the environment — throughout their life cycles. 

Waste Management:

Legal developments like the 2021 Waste Framework Directive (WFD) have prioritized waste prevention, making it essential to consider circularity at the design stage.

Extended Producer Responsibility laws (EPRs) make brands financially responsible for the collection, sorting and recycling of garments. The laws vary by country and fall under the Waste Directive Framework and EU Strategy for Sustainable and Circular Textiles. Compliance requires companies to improve their waste management systems so more materials are repurposed rather than discarded.

To push for more circular product design, a proposed amendment to the WFD could force producers to pay for textile waste management. Approval of this proposal is expected by 2026.

The EU Green Deal encourages sustainable consumption through shared responsibility between businesses and consumers. Transparency is key to making this partnership work.

Accurate, verifiable information enables consumers to make more sustainable choices and reduce environmental impact.

The Empowering Consumers for the Green Transition Directive (EmpCo Directive) bans vague or misleading environmental claims in marketing, promoting greater trust in verified sustainability information.

Misleading consumers by overstating environmental benefits diverts attention and resources from genuine sustainability progress. This slows meaningful improvement and allows harmful practices to persist.

EmpCo Directive Timeline:

• Adopted by EU Commission: February 28, 2024
• Deadline for adoption by EU member states: March 27, 2026
• Requirements become enforceable: September 27, 2026

To build trust, prevent greenwashing and support informed purchase decisions, companies must provide credible evidence of their sustainability claims. Required disclosures include:

• Where materials come from
• How products are made
• What happens to products at end of life

Product labels, such as Digital Product Passports (DPPs), will further enhance transparency by providing clear information on materials, origin, repair options and recyclability.

The EU Chemicals Strategy prioritizes responsible chemical management with a plan to reduce toxic impacts on people and the environment while driving innovation in safer, more sustainable chemistries.

By 2030, chemical production restrictions are expected to double, including expanded bans and limitations on hazardous substances used in dyeing, processing and finished products.