ESG Reforms for Product Companies

Recent months saw the introduction of various ESG guidelines for products and its allied packaging. In September 2024, we saw the introduction of the Ecomark Rules, followed by the Prevention of Greenwashing Guidelines in October 2024 and the Extended Producer Responsibility Rules (EPR) for Packaging in December 2024. If you are part of or have invested in a product company – here’s all you need to know about these three guidelines:

1. ECOMARK RULES, 2024

Just as a green dot encased in a square indicates that a product is Vegetarian, an Ecomark is an equivalent mark that can help recognise a product as ‘Environmentally Friendly’ or rather ‘Environmentally Certified’. An Ecomark is a voluntary certification mark that indicates a product has been assessed for its environmental impact and meets specific criteria. It helps consumers identify environmentally friendly products and promotes sustainable practices and consumer awareness.

The Ministry of Environment, Forest, and Climate Change (MoEF&CC) introduced the Ecomark Rules, 2024 which came into force on 26th September 2024. These guidelines add to the Ecomark Certification Rules, 2023, enforced on 11th October, 2023. The Ecomark Scheme is administered by The Bureau of Indian Standards (BIS); however companies must apply to the Central Pollution Control Board for grant of the Ecomark Certificate.

Criteria for the grant of an Ecomark requires products to:

• Reduce pollution by minimizing or eliminating the generation of waste and environmental emissions;

• Be recyclable or made from recycled material or both;

• Reduce the use of non-renewable resources, including non-renewable energy sources and natural resources; and

• Reduce the use of any material which harms the environment.

The guidelines currently extend to the following product categories - architectural paints and powder coating, cosmetics, batteries, lubrication oils, soaps and detergents, paper, food items/additives, packing material, electronic goods, wood substitutes, plastic products, textiles, fire extinguishers, leather goods, and coir products.

Global Parallel: The World Trade Organisation had launched a similar initiative called the ‘Ecomark Global Framework Initiative’ last year with the aim to establish internationally recognized and cost-effective standards for sustainable products. The COP 28 Presidency (UAE) actively supported the promotion of the framework and even encouraged its widespread adoption among global MSMEs and emerging nations. In this context, an Indian Ecomark demonstrates the country’s stewardship on sustainable practices, by devising the guidelines early on.

2. GUIDELINES FOR PREVENTION AND REGULATION OF GREENWASHING OR MISLEADING ENVIRONMENTAL CLAIMS, 2024

Source: Design Theory

Skepticism arises when advertisements and promotions seem exaggerated. While a company may not intentionally set out to 'deceive' consumers, boarding the marketing hype that oversells ESG initiatives isn't viable.

The Central Consumer Protection Authority (CCPA) issued guidelines on October 15 to prevent greenwashing and curb false claims of environmental benefits arising from products and services. The latest Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims 2024 replaces the Guidelines for Prevention of Misleading Advertisement Endorsements for Misleading Advertisements 2022 and establishes clear definitions for ‘Environmental Claim’ and ‘Greenwashing’.

Environmental Claim "means any representation in any form regarding:

a. any goods, either in its entity or as a competent, the manufacturing process, packaging, manner of use or its disposal, or

b. any service or the process involved in providing services

 suggesting environmentally friendly attributes aimed to convey a sense of environmental friendliness or eco-friendliness.”

This includes claims such as:

• Having a neutral or positive impact on the environment or contributing to sustainability;

• Casing less harm to the environment as compared to a previous version of the product or service;

• Causing less harm to the environment as compared to competing goods or services; and

• Being more beneficial to the environment or possessing specific environmental advantages.

Greenwashing "means

a. Any deceptive or misleading practices, which includes concealing, omitting, or hiding relevant information, by exaggerating, making vague, false or unsubstantiated environmental claims, or

b. Use of misleading words, symbols or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes.”

For example, a company states in its mission statement that “its growth will be based on sustainable practices.” This will not be treated as an environmental claim. However, if “and all its products are manufactured sustainably” is added to the statement, it shall be examined for greenwashing.

Source: Pick Ethical

Substantiation of Environmental Claims

• Generic terms such as ‘clean’, ‘green’, ‘eco-friendly’, ‘carbon-neutral’, etc. shall not be used without accurate, accessible qualifications and adequate disclosures;

• Consumer-friendly language must be used to explain the meaning or implication of technical terms such as ‘Greenhouse Gas Emissions’, ‘Ecological Impact Assessment’, etc; and

• All Environmental claims shall be supported by accessible verified evidence such as independent studies or third-party certifications.

Here is an example of how Cocokind, a skincare brand, disclosed its sustainability facts in its product packaging. Instead of claiming that its packaging is recyclable, the Company divided the packaging into its three constituents: bottle, sprayer and box, and assigned a recyclability percentage. This way it clarified that while its bottle and box were 100% recyclable, its spray was not.

Source: Cocokind Product Label

 Adequate Disclosures

• All material information in relevant advertisements or communications must be disclosed by inserting a QR Code or URL;

• While disclosing, data should not be specifically selected to highlight only favorable observations while obscuring the unfavorable; and

• Comparative claims must disclose exactly which specific aspects of one product are being compared to another;

• Disclosures must be easily accessible to the consumer and not contradict the relevant environmental claim.

Coming from the CCPA, these guidelines provide consumers the right to seek compensation for any damages or losses incurred due to dubious environmental claims. The Act provides penalties ranging from INR 50,000 to INR 1 crore in case of violations.

3. ENVIROMENT PROTECTION (EPR FOR PACKAGING MADE FROM PAPER, GLASS AND METAL AS WELL AS SANITARY PRODUCTS) RULES, 2024

Source: Europen

EPR rules are the cornerstone of modern India’s waste management story. Propagating the 'You Introduced It, You Manage It' policy, these rules hold producers, importers and brand owners accountable for what happens after their products are used. While EPR for plastic and e-waste are already in implementation, these draft regulations extend to packaging waste from paper, glass and metal and are expected to come into force from 1st April 2026.

Much like the other EPR guidelines, these guidelines are exempt for MSMEs, and provide for phased implementation with targets increasing every year.

The rules introduce targets for the following three aspects of glass, metal and paper waste:

1. Collection of packaging waste;

2. Minimum amount of recycling of collected waste;

3. Use of recycled materials in inputs; and

The rules also introduce targets for sanitary waste which has seen increasing contribution to total waste to landfill in the recent years.

1. EPR Targets for Collection (as a percentage of total packaging waste)

Particulars	2026-27	2027-28	2028-29	2029-30 & onwards
Paper, Glass & Metal	70%	85%	100%	100%

2. EPR Targets for Minimum Recycling of Packaging Waste (as a percentage of total packaging waste)

Particulars	2026-27	2027-28	2028-29	2029-30 & onwards
Paper, Glass & Metal	50%	60%	70%	80%

3. EPR Targets for Minimum use of Recycled Content in Making of Packaging Product/Material (as a percentage of total packaging waste)

Particulars	2026-27	2027-28	2028-29	2029-30 & onwards
Paper	40%	50%	60%	70%
Glass	20%	30%	40%	50%
Metal	50%	60%	70%	80%

In conclusion, the above three guidelines - Ecomark Rules, Prevention of Greenwashing guidelines and the EPR for Packaging - are critical pedestals in the sustainable product story of India🚀- for the following two reasons:

1. driving enterprises to environment consciousness for the products they make or market, and

2. providing a genuine method and remedy for consumers to make sustainable choices.

We only hope these legislations go beyond their form to achieve the substance behind them.

Co-authors: Manyaa Dixit, Disha Veera.

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