ES|EN|日本語|DE
In recent months, various headlines have brought the issue of “greenwashing” into the spotlight—a practice consisting of conveying to the public an image of environmental responsibility that does not correspond to the company’s actual behaviour. Recent cases such as the multi-million-euro fine imposed on Shein in Italy, as well as the actions taken by French authorities against an energy company for unfounded environmental claims, illustrate the increasingly forceful regulatory response to these practices. These episodes are neither isolated nor limited to a specific sector; instead, they reflect a widespread trend within the European Union and its Member States to strengthen oversight of environmental claims and require objective, transparent, and regulated evidence to prevent consumer confusion and unfair competition.
Greenwashing
Greenwashing has become a major concern not only from the perspective of advertising and consumer protection but also within the field of corporate sustainability and green taxation. Recent studies have revealed that companies of all sizes, both large corporations and SMEs, are falling behind in meeting science-based and internationally agreed emissions-reduction targets, while ambiguous, poorly substantiated, or outright misleading environmental statements continue to proliferate. In response, regulators have tightened rules and oversight, establishing that environmental claims must be based on clear, verifiable, and publicly available commitments, and eliminating the use of generic green labels, badges, or statements without technical support.
Recent regulatory developments at the European level include the adoption of Directive (EU) 2024/825 on empowering consumers for the green transition, whose main objective is to prohibit unverified environmental claims and provide consumers with mechanisms to identify and report greenwashing practices. This Directive is accompanied by significant sanctions and applies to major companies as well, covering any misleading statement on sustainability, the presentation of environmental quality seals not backed by recognized certification systems, or the omission of relevant information regarding the actual environmental impact of products and services. Public disclosure of sanctions and the identity of offenders is also a distinctive measure under the new legislative framework, as it contributes to special prevention by deterring other companies in the sector and protecting consumer rights.
Greenhushing
Parallel to greenwashing, an opposite yet equally concerning phenomenon has emerged: “greenhushing.” This term refers to the tendency of some companies to deliberately silence or downplay communication about their sustainability initiatives and goals for fear of being accused of greenwashing or of failing to fully meet regulatory standards. Although greenhushing may appear to be a cautious strategy in light of stricter rules, it actually limits transparency and hinders the exchange of best practices in sustainability. It may also generate distrust among consumers and investors, who may perceive it as a lack of commitment or accountability. For this reason, experts stress the need to strike a balance: communicating environmental progress rigorously and verifiably, avoiding both exaggeration and strategic silence.
Sanctioning Response
The tightening of sanctions is not limited to the advertising sphere. Complementary regulations concerning eco-labeling, competition law, and sector-specific rules —such as those applicable to the energy market — establish a framework of infringements and penalties that may reach millions of euros, include bans on contracting with public authorities, or lead to the suspension of permits and licenses. Thus, greenwashing may constitute not only a serious or very serious administrative offense but also, in certain cases, a criminal offense or grounds for civil or commercial liability for damages caused to consumers, competitors, and the environment.
The case of Shein in Italy, sanctioned for practices deemed as greenwashing, joins other recent decisions in which the Italian regulatory authority required the withdrawal of unfounded environmental claims and the restoration of truthful information in the market. Similarly, in France, a substantial fine has been imposed on an energy-sector company for falsifying the ecological characteristics of its products, illustrating a common approach that is gradually permeating throughout the European Union: companies must not only ensure the accuracy of their environmental information but also guarantee that sustainability commitments are accessible, public, assessable, and verifiable by independent bodies.
Practical Recommendations for Companies
For companies, these developments impose a series of clear and unavoidable lessons: sustainability cannot be merely a marketing argument but must be a verifiable reality aligned with the corporate strategy and business model. The adoption of environmental compliance programs, the implementation of independent management and audit systems (such as EMAS III or ISO 14000 certifications), and the review and documentary substantiation of all environmental claims made to the public or included in advertising are now essential measures to prevent legal, economic, and reputational risks associated with greenwashing. It is also important to remember that repeated or systematic infringements may increase penalties and lead to disqualification from contracting with public authorities, restitution of illicit gains, and public exposure of the offending company.
These requirements are now reinforced in Spain by the framework established under Royal Decree 214/2025, which strengthens the obligations of traceability, transparency, and verification for all environmental communication. Among other obligations, the Royal Decree establishes reinforced controls over the use of environmental labels and badges and requires companies to have internal systems for periodic monitoring to ensure consistency between public communications and actual environmental performance. Strict compliance with these measures not only facilitates the objective verification of the company’s sustainable actions and commitments, but also helps avoid potential greenwashing sanctions by providing a transparent and verifiable basis for all environmental claims.
Conclusion
In conclusion, the European and Spanish regulatory and sanctioning framework not only requires companies to strictly ensure the truthfulness of their environmental claims, but also to develop a genuine culture of responsibility, transparency, and oversight in sustainability matters. Greenwashing can now lead to severe and far-reaching consequences, both in terms of fines and in terms of market confusion and loss of consumer and investor trust. It is therefore advisable to carry out ongoing, preventive reviews of internal procedures and public messaging related to the company’s environmental policy.
Shameem Hanif Truszkowska
Vilá Abogados
For more information, please contact va@vila.es
21st of November, 2025
