The use of generic environmental and climate claims which are not based on fact and supported by evidence will be banned in the EU by 2026 and added to the list of unfair commercial practice, under new legislation agreed by EU legislators.

EU legislators have agreed on a new piece of draft legislation that imposes a due diligence obligation on company directors to assess, identify, and evaluate risks, and implement mitigation strategies in respect to human rights and environmental supply chain issues. Negotiators of the EU Parliament and European Council, two key legislative bodies of the EU, reached agreement of the text, making it almost certain that the requirements will become law throughout the EU.