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7 Keys to understanding Greenwashing regulations

Updated on
October 19, 2025

These are the 7 keys to understanding greenwashing regulations:

  1. Transparency is no longer optional
  2. Data is the central piece
  3. Statements must have traceability
  4. Not everything goes: messages must be specific
  5. Sustainability is a strategic lever
  6. Automation is the key to compliance without friction
  7. Measuring is the first step to compete

In recent years, greenwashing regulations have completely changed the way companies communicate their environmental, social, and governance performance.

It is becoming increasingly clear that it is not enough to say that a company acts responsibly, it must prove it with objective and verifiable data.

This demand is turning sustainability into a matter of both compliance and competitiveness.

Governments and markets are sending the same message: only what can be proven counts.

Vague statements or unsupported commitments are no longer valid. Today, what differentiates a company is its ability to measure its real impact, control its ESG information, and report it with transparency and consistency to regulators, investors, and clients.

Each new regulation aims to strengthen the credibility of companies that work with solid data. That is why sustainability is no longer just a matter of reputation but has become a strategic lever.

Those who know how to manage their ESG information will be ready to adapt to new regulatory frameworks and seize emerging opportunities.

In this article, we will explore what greenwashing regulations entail, how they affect companies, and what practical steps can be taken to comply efficiently, with a data-driven approach.

These are the 7 keys to understanding greenwashing regulations

1. Transparency is no longer optional

Today, transparency has become a basic requirement. New regulations demand that every environmental or social claim be backed by verifiable data.

It is not only about communicating good intentions, but about showing concrete evidence of how the company manages its real impact.

Complying with this principle is not just a legal matter; it is also a way to build trust and differentiate from competitors that still operate without a solid data foundation.

2. Data is the central piece

The fight against greenwashing revolves around one key idea: without data, there is no credibility. For this reason, organizations must collect and structure all their ESG information systematically.

From invoices, consumption, suppliers, or business travel, to data about employees or materials, everything counts.

With a centralized ESG database, we can measure, analyze, and reuse information across different frameworks: EINF, CSRD, Taxonomy, SBTi, or ISO standards.

3. Statements must have traceability

Every claim we make about our impact must be traceable back to the data source.

Current regulations demand coherence, consistency, and documentation, which means having a clear flow between what we measure and what we communicate.

This avoids inconsistencies between reports and public statements, something that authorities are now monitoring closely.

In practice, this means having internal verification processes and quality controls that ensure the accuracy of results.

4. Not everything goes: messages must be specific

Generic or absolute messages are no longer acceptable. Current regulations aim to eliminate vague expressions or promises that are difficult to verify. It is essential to define the scope of each message and show the context of the results.

Instead of communicating broad commitments, we should focus on concrete, measurable facts.

This improves understanding and prevents misinterpretations that can lead to fines or reputational damage.

5. Sustainability is a strategic lever

More and more companies understand that measuring their ESG impact is not just a formality, but a competitive advantage.

Clients, investors, and supply chains value real data and measurable evidence.

Those who neither measure nor manage their ESG information will be left out of the market, because sustainability is now a key factor of competitiveness.

Integrating ESG management into corporate strategy allows companies to anticipate regulation and adapt without friction.

6. Automation is the key to compliance without friction

Complying with new regulatory frameworks does not have to mean slow or complex processes.

Today, it is possible to automate the collection, analysis, and distribution of ESG data to reduce errors and accelerate reporting.

From our perspective, we are not auditors or consultants, but a solution designed for companies to measure and manage their impact with agility and precision. With a well-built data infrastructure, complying with any regulation stops being a burden and becomes a continuous, controlled process.

7. Measuring is the first step to compete

Greenwashing regulations are not intended to punish, but to promote an economy based on real, comparable information.

Those who measure rigorously will be in a position to demonstrate their value and participate in tenders, supply chains, and European funding programs.

In short, measuring, verifying, and communicating with ESG data is the foundation for both compliance and competitiveness.

Companies that adopt this approach will be ready for any regulatory change and will be able to turn sustainability into a true strategic advantage.

Let’s be clear: why greenwashing regulations are gaining strength

What is greenwashing and how to identify it in companies

When we talk about greenwashing, we refer to those practices where a company tries to project an image of sustainability without having data to back it up.

In other words, it communicates more than it actually does.

This happens when messages or promises are made without verifiable information, such as impact reductions that cannot be measured or future commitments without a clear methodological basis.

The problem is not just reputational. These practices distort competition and create distrust among clients, investors, and regulators.

That is why new laws are tightening the requirements on how environmental and social claims must be justified.

Identifying greenwashing within an organization begins with a simple question:
Can we prove, with real data, everything we say?

If the answer is no, it is time to structure the ESG information and turn assumptions into metrics.

Companies that do so gain control, visibility, and credibility.

Those that do not will face an increasingly demanding scenario, where only transparency and traceable data guarantee trust.

Why new regulations aim to curb misleading environmental claims

The new greenwashing regulations did not appear by chance.

They respond to a reality: for years, many organizations have communicated environmental goals without evidence, without measurement systems, and without data quality control.

Now, regulation demands something as simple as it is logical: if you communicate, prove it. Every statement about impact, reduction, or neutrality must be supported by recognized methods and verifiable data.

It is not about adding bureaucracy, but about ensuring that all companies measure by the same rules.

This shift has a positive effect across the market.

Companies with well-structured ESG data can comply with regulations efficiently, anticipate audits, and generate valid reports for different regulatory frameworks such as CSRD, SBTi, EINF, Taxonomy, or ISO certifications.

This is where we come in. We are not auditors or consultants, but a solution for companies that need to manage their ESG data reliably, automatically, and at scale.

Our approach starts from the data: we collect all relevant information and transform it into metrics that can be used in any context, without duplicating efforts or processes.

Ultimately, these regulations are gaining strength because the market needs trust, traceability, and consistency.

Sustainability is no longer measured by promises, but by results, and that is only possible if we have a solid data foundation to support every decision and communication.

4 Main European and Global Regulations Against Greenwashing (CSRD, CSDDD, Green Claims Directive, etc.)

Greenwashing regulations are marking a before and after in how companies must manage and communicate their ESG information.

Good intentions are no longer enough; European and global institutions now demand verifiable data, traceability, and consistency between what is measured and what is communicated.

The goal of this new regulatory framework is clear: to standardize the way companies report their environmental, social, and governance performance.

All companies, regardless of size or sector, must now adapt to a system based on evidence, not declarations.

1. CSRD: the new European standard for transparency

The CSRD (Corporate Sustainability Reporting Directive) is the central piece of European regulation.

It requires companies to measure, manage, and report their ESG information with the same level of rigor used for their financial statements.

This directive introduces the concept of double materiality, meaning that companies must analyze both how they affect the environment and how ESG factors affect their business.

To comply, it is essential to have well-structured data and methodologies aligned with recognized standards, such as ESRS norms or applicable ISO frameworks.

2. CSDDD: Due diligence and traceability across the entire value chain

The CSDDD (Corporate Sustainability Due Diligence Directive) extends companies’ responsibilities beyond their own operations.

Its purpose is to ensure that social and environmental impacts are also controlled throughout the supply chain, from suppliers to distribution.

This means that it is no longer enough to simply report internal emissions or corporate sustainability policies.

Companies must prove that they assess and mitigate ESG risks at every stage of their activity, ensuring that the data used are coherent, up to date, and verifiable.

3. Green Claims Directive: control of public environmental statements

Although still in the process of consolidation, the Green Claims Directive has a clear objective: to eliminate misleading environmental statements.

This regulation will require companies to justify every environmental claim with measurable evidence, verified by third parties, and accessible to the public.

In practice, this means that expressions like “carbon neutral” or “sustainable product” can only be used if there are auditable data and recognized methodologies to support them.

Penalties for non-compliance will become increasingly severe, making ESG data traceability a strategic priority.

4. The global framework: convergence toward ESG data transparency

Outside Europe, frameworks such as ISSB, GRI standards, or TCFD recommendations are advancing toward a common principle: standardization and verification of ESG data.

Everything points to a global convergence, where sustainability reports will be comparable, consistent, and based on quantitative evidence.

In this context, the collection and management of ESG data is no longer an administrative exercise but a strategic tool for demonstrating compliance, anticipating risks, and maintaining competitiveness.

From our perspective, we are not auditors or consultants but a technological solution designed to help companies measure, structure, and report their ESG data under any regulatory framework.

We automate information gathering and adapt it to different standards such as CSRD, CSDDD, SBTi, ISO, or the European Taxonomy, avoiding duplication and simplifying the entire process.

In short, the main greenwashing regulations are driving a profound transformation: sustainability is no longer a narrative, but a management system based on real data.

Those who measure and manage their information properly will be prepared to comply with any regulation and take advantage of opportunities emerging from this new data-driven economy.

How these regulations affect companies’ ESG communication and reporting

Greenwashing regulations are completely transforming the way companies communicate their sustainability performance.

It is no longer about drafting an attractive report, but about building a narrative based on real, verifiable, and traceable data.

Today, every statement related to environmental, social, or governance impact must be proven with evidence.

This means that ESG reporting can no longer be an isolated document, but the result of a continuous process of data collection, analysis, and verification.

These regulations force companies to connect information that was previously scattered: from Carbon Footprint and energy consumption to social and governance indicators.

Everything must be structured and backed by specific sources, something that requires a cultural and technological change within organizations.

From now on, companies without solid ESG management systems will be at a disadvantage.

Without reliable data, it will be impossible to comply with reporting frameworks required by regulations such as CSRD or CSDDD, and they will not be able to respond to clients, investors, or tenders demanding clear and verifiable information.

On the other hand, those adopting a data-driven approach will be able to report consistently, generate reports in multiple formats, and comply with several regulatory frameworks from a single source of information.

This efficiency is key to gaining agility and reducing compliance costs.

From our experience, we are not auditors or consultants; we are a technological solution designed so that companies can automatically gather all their ESG information without duplicating efforts.

Our goal is to ensure that every data point has a purpose and can be used in any context, whether for a CSRD report, an SBTi plan, an ISO certification, or a European Taxonomy assessment.

In short, these new regulations are pushing us toward more rigorous, coherent, and evidence-based communication.

It is not a change in form but in substance: companies that manage their ESG data properly will be able to communicate with credibility and turn sustainability into a true competitive advantage.

4 Challenges and Opportunities Created by Greenwashing Regulations

1. Regulatory pressure as a driver to improve data management

The first major challenge is regulatory complexity. European directives are raising the bar, and adapting requires both time and precision.

But this challenge also brings an opportunity: companies that centralize and automate their ESG data will not only comply with the law but also gain efficiency and control over their information.

Having a unified database allows for measurement, updates, and reporting without duplication, reducing errors and validation times. It is the logical step toward smarter and more competitive management.

2. Greater public exposure and demand for consistency

Transparency has become a standard. Companies can no longer say one thing in marketing and another in their reports.

Greenwashing regulations demand total consistency between what is said and what is proven.

This may seem like a burden, but it is also an opportunity to reinforce credibility. Companies that communicate using accurate data will be better positioned before clients, investors, and authorities.

3. Automation as a competitive advantage

One of the biggest challenges is the manual management of ESG information, which creates inconsistencies and delays in reporting processes.

Automation allows data to be collected from multiple sources and transformed into useful, real-time information.

This is where our proposal comes in: we are not auditors or consultants, but a solution designed to simplify ESG management for any company.

We collect all relevant data and distribute it automatically according to business needs, EINF, CSRD, SBTi, ISO, or the European Taxonomy.

Thanks to this structure, compliance stops being a one-off exercise and becomes a continuous process, integrated into the company’s daily operations.

4. From obligation to strategic value

The last major change is a shift in mindset. Regulations should no longer be seen as a legal burden, but as a strategic lever.

Complying with them means being ready to access new business, funding, and partnership opportunities.

Companies that measure and manage their ESG impact rigorously will be in a better position to compete in demanding markets, anticipate regulatory changes, and show that their sustainability is based on facts, not claims.

In summary, greenwashing regulations are not an obstacle but an opportunity to professionalize ESG management.

Those adopting a data-driven approach will take a step forward toward measurable, efficient, and competitive sustainability.

The role of ESG data in transparency and verification of sustainable claims

Greenwashing regulations have made one thing clear: transparency is no longer optional. Any company that communicates its impact today must be able to prove it with reliable, traceable data.

The difference between a credible statement and an empty one lies in the quality and consistency of the information behind it.

ESG data are the core of this transparency. They allow us to understand precisely what is happening in every part of the business, from energy consumption to indirect emissions or social and governance indicators.

Without a solid data foundation, any message loses weight and can become a reputational or regulatory risk.

Moreover, new regulatory frameworks require not only to communicate results, but also to verify and justify every published figure.

This means having systems that collect information from multiple sources, normalize it, and validate it to ensure reliability.

At this point, traceability stops being a technical concept and becomes a strategic requirement.

When a company has consistent and verifiable data, it can report confidently and adapt the same information to different regulations such as CSRD, SBTi, European Taxonomy, or ISO certifications.

The key is not to create more reports, but to leverage a single data foundation to cover multiple use cases without duplicating efforts.

Having such a system allows companies to move from a reactive model,where measurement happens only for an audit or tender, to a proactive model, where ESG information is integrated into decision-making and updated in real time.

That is what truly means to demonstrate transparency and commitment: managing with data, not with statements.

To successfully navigate this transition, many organizations are aligning their internal reporting systems with sustainable finance frameworks that integrate ESG performance into broader investment and compliance strategies. 

These frameworks not only facilitate alignment with European directives but also help companies attract responsible investors and enhance transparency across the entire value chain.

Technology as a tool to ensure and demonstrate ESG transparency

Technology is now the key factor that determines whether a company can comply with regulation or be left behind.

Digital tools make it possible to automate ESG data collection, reduce errors, and increase traceability for every indicator.

Thanks to automation, we can integrate both internal and external sources, billing, energy consumption, business travel, materials, or suppliers, without relying on manual processes or scattered spreadsheets.

This allows companies to move from data chaos to an organized, auditable, and reusable system.

Digitalization also makes quality control and continuous verification much easier.

Every piece of data is linked to its origin, date, and category, which makes it simple to prove its validity during any review or audit.

Moreover, data analysis algorithms help detect inconsistencies, improve estimates, and keep ESG information up to date in real time.

In our case, we offer a solution that simplifies this entire process. We are not auditors or consultants; we are a platform that connects, analyses, and transforms ESG data into ready-to-report information.

Our focus is clear: a single source of truth for all regulatory frameworks.

The combination of accurate data and advanced technology enables companies to comply with regulations without friction, gain efficiency, and communicate with credibility.

Transparency stops being an obligation and becomes a competitive advantage, because whoever measures and proves with data is always one step ahead.

Dcycle: the ESG solution to guarantee data reliability and avoid greenwashing

In an environment where greenwashing regulations demand rigor and traceability, companies need tools that allow them to manage their ESG data precisely and easily.

In our case, we understand that the key is not to add more processes but to automate the collection, verification, and use of ESG information so that every data point matters.

We are not auditors or consultants; we are a technological solution designed for any company to measure, manage, and communicate its ESG impact reliably.

Our platform gathers all relevant information, from consumption, invoices, or business travel, to social or governance indicators, and turns it into structured data, ready for any use case.

The real value lies in reliability and consistency.

With a single source of information, companies can adapt their data to different regulatory frameworks without duplicating efforts or wasting time on manual adjustments.

Whether it is a CSRD report, an EINF, an ISO certification, a European Taxonomy assessment, or an SBTi plan, the data are automatically distributed according to the format and requirements of each regulation.

Moreover, our approach focuses on data control.

Each piece of information that enters the system is verified, classified, and internally audited to prevent errors, omissions, or double counting.

This ensures that the results reported are traceable and defensible in any regulatory review or external audit.

With this model, companies not only comply, but also gain independence, agility, and credibility.

Having verified data allows them to communicate with confidence, avoid reputational risks, and anticipate regulatory changes.

Ultimately, we measure what matters, so that every company can prove its ESG performance with facts, not claims.

Our vision: transparency and verified data as a competitive advantage

We firmly believe that data-based transparency will define the most competitive companies of the coming years.

The ability to prove, not just claim, will mark the difference between organizations that lead and those that fall behind.

Our vision stems from a simple idea: sustainability can only be managed if it is measured with real data.

That is why we promote a model in which ESG information is not treated as an annual report, but as a strategic asset that adds value to the business.

When a company has its ESG data centralized, verified, and ready to use, it can respond quickly to clients, investors, and regulators, and also make informed decisions about efficiency, impact, and compliance.

That ability to act based on information is what turns sustainability into a lever of competitiveness, not just a legal obligation.

Our goal is to ensure that every organization has full control of its ESG information. From Dcycle, we help make measurement, reporting, and compliance stop being complex processes and become natural, automated, and useful for business.

Because in a market that demands rigor and transparency, data reliability is not only a matter of compliance but a true competitive advantage.

Frequently Asked Questions (FAQs)

What is considered greenwashing under the new regulations?

The new greenwashing regulations consider misleading any message or statement that cannot be demonstrated with verifiable data.

This includes generic sustainability claims, objectives without methodological support, or comparisons without context.

In essence, the goal is to avoid communicating more than can actually be proven, ensuring that all information is based on measurable and traceable evidence.

The objective is not to penalize communication, but to ensure that companies speak with data, not promises.

That is why having a solid ESG data foundation is essential to support any message or public commitment.

Which European regulations govern companies’ environmental claims?

The main rules regulating ESG communication in Europe are the CSRD (Corporate Sustainability Reporting Directive), the CSDDD (Corporate Sustainability Due Diligence Directive), and the Green Claims Directive.

All of them share a core idea: strengthening transparency and verification of ESG information.

These laws require companies to measure and report their impact using recognized, consistent methodologies, and to ensure that every environmental statement is supported by auditable data.

Together, they make up the new European framework for responsible reporting and communication, which aims to eliminate misleading claims and raise the quality standard of corporate data.

How can a company demonstrate the accuracy of its ESG data?

To demonstrate the accuracy of ESG data, companies must collect information from its origin, maintain clear traceability, and use standardized methodologies.

Each data point must have a well-defined source, period, and category.

The process involves structuring information in a way that allows it to be reused across different regulatory frameworks, without needing to recalculate or rebuild reports.

When data are properly organized, companies can easily show the evidence behind each indicator and respond confidently to clients, investors, or regulators.

What role do external audits or verifications play in the fight against greenwashing?

External verifications are an important complement within the new regulatory framework.

Their role is to ensure independence and reliability of the reported data, confirming that the applied methodologies are correct and that the results are consistent.

However, the first step must always be internal: having data that are structured and validated from the start.

Audits only add value when the information is already organized and backed by evidence.

That is why the main challenge is not passing the audit itself, but building a solid, traceable data system that makes it possible.

How can an ESG platform ensure compliance with greenwashing regulations?

An ESG platform helps companies centralize, automate, and verify all their environmental, social, and governance information from a single place.

By structuring data consistently, it allows the generation of reports aligned with multiple regulations, CSRD, CSDDD, ISO, SBTi, or the European Taxonomy, without duplicating work or losing precision.

In our case, we are not auditors or consultants; we are a solution for companies that need to measure and manage their ESG impact with rigor and efficiency.

We collect all data, apply automatic quality controls, and transform them into ready-to-report information that companies can communicate with confidence.

In this way, we help transform compliance from a reactive process into a continuous management system based on reliable data.

Complying with greenwashing regulations thus becomes simpler, while also allowing companies to demonstrate transparency, reduce risks, and gain competitiveness in the market.

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Frequently Asked Questions (FAQs)

How Can You Calculate a Product’s Carbon Footprint?

Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.

The most recognized methodologies are:

  • Life Cycle Assessment (LCA)
  • ISO 14067
  • PAS 2050

Digital tools like Dcycle simplify the process, providing accurate and actionable insights.

What Are the Most Recognized Certifications?
  • ISO 14067 – Defines carbon footprint measurement for products.
  • EPD (Environmental Product Declaration) – Environmental impact based on LCA.
  • Cradle to Cradle (C2C) – Evaluates sustainability and circularity.
  • LEED & BREEAM – Certifications for sustainable buildings.
Which Industries Have the Highest Carbon Footprint?
  • Construction – High emissions from cement and steel.
  • Textile – Intense water usage and fiber production emissions.
  • Food Industry – Large-scale agriculture and transportation impact.
  • Transportation – Fossil fuel dependency in vehicles and aviation.
How Can Companies Reduce Product Carbon Footprints?
  • Use recycled or low-emission materials.
  • Optimize production processes to cut energy use.
  • Shift to renewable energy sources.
  • Improve transportation and logistics to reduce emissions.
Is Carbon Reduction Expensive?

Some strategies require initial investment, but long-term benefits outweigh costs.

  • Energy efficiency lowers operational expenses.
  • Material reuse and recycling reduces procurement costs.
  • Sustainability certifications open new business opportunities.

Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.