Sustainability and consumer protection as part of corporate brand identity and trademark selection – avoid greenwashing pitfalls and earn customer trust

Sustainability, climate issues, and the circular economy are gaining momentum among both consumers and businesses. Companies are actively striving to incorporate environmental, social, and good governance considerations into all aspects of their business operations and strategies. Increasingly stringent requirements regarding sustainability and consumer protection are also being introduced through legislation. In Europe, several legislative initiatives are under way, requiring companies to provide increasingly strict reporting on their activities and their environmental impact. Additionally, consumer protection efforts are being strengthened against misleading environmental claims. All of this impacts corporate communications, brand messaging, and ultimately, trademark selection.

A strong trademark distinguishes from competitors and builds customer trust

More and more consumers consider the environmental and ethical aspects of products and services when making purchasing decisions. Similarly, in business-to-business relationships, sustainability reports are increasingly expected. Companies are now striving to stand out in the market by creating brands that reflect their values and emphasize sustainability. For instance, brands may use green colors or terms suggesting sustainability and ethics, such as BIO, ECO, or RE-, to highlight eco-friendliness and recycling efforts.

However, when choosing a trademark, it is essential to remember that its primary function is to distinguish a product from competitors' offerings. A trademark should not be overly descriptive or misleading. A strong trademark is memorable and distinctive, and a well-crafted brand story enhances brand recognition. Successful examples include Patagonia and Globe Hope, both of which have built strong brand narratives around sustainability.

Stricter regulations against greenwashing

The EmpCo Directive (Empowering Consumers for the Green Transition) and the Green Claims Directive are both part of the EU’s broader strategy to enhance consumer protection and ensure reliable environmental claims, as outlined in the European Green Deal. The EmpCo Directive came into force on 26 March 2024, and it amended the Unfair Commercial Practices Directive to address misleading environmental claims. Companies should already be complying its requirements. The Green Claims Directive, which was approved by the European Parliament in January 2024, will apply to consumer trade and particularly to environmental claims used in marketing. In Finland, these regulations are also covered by the Consumer Protection Act.

Companies that excel in responsible communication earn deeper trust from their customers. A strong brand and a distinctive trademark support effective sustainability messaging.

Key takeaways from regulations concerning environmental claims and consumer protection

• Companies must provide scientifically backed and reliable evidence for environmental claims.
• Environmental claims and labels must be verified by an independent and accredited assessor.
• Consumers must receive adequate information on product durability and reparability before making purchasing decisions.
• The Green Claims Directive prohibits claims that lack scientific proof, such as stating carbon neutrality without proper evidence.
• Labels related to product sustainability must be based on certification systems or official approvals.
• Businesses must provide information on product durability and recyclability.

What does this mean for your business?

• Identify the environmental claims used in your company’s communications.
• Consider how your target audience perceives your brand message.
• Do you have evidence to support your claims?
• Assess the significance of your "green" trademarks and document their environmental impact.
• Be cautious when building a sustainability-focused brand.
• Integrate sustainability naturally into your communication, marketing, and IP strategy.
• Educate your employees and inform your stakeholders.
• Seek expert guidance, especially if your brand has international reach.

Sustainability is no longer just a passing trend—it has become an essential part of successful corporate identity. Businesses must ensure that their brand, visual identity, and trademarks do not create a misleading image of their social sustainability or environmental efforts. Misleading claims are often short-lived. By choosing a trustworthy trademark and crafting a compelling brand story, companies can gain a competitive edge, strengthen their responsible brand identity, and increase the desirability of their products.

About the author

Our expert Paula Sailas is an active lecturer on sustainability regulations, including in the Marketing Finland Academy’s Sustainable Marketing and Communication Certificate Program.

This blog post is published in collaboration with Marketing Finland. Berggren is a recommended legal partner of Marketing Finland.