New rules tighten requirements for sustainability claims in the real estate sector

Terms such as “sustainable”, “green” or “environmentally friendly” are frequently used today. However, following the transposition of a European Directive into Belgian law, their use will no longer be as unrestricted. Any business making such a claim will have to be able to substantiate it with concrete and verifiable evidence. A sustainable feature of one part of a building, for example, cannot be used to present an entire real estate project as sustainable.

From broad slogans to specific claims

The stricter European rules therefore require a different approach to communication, including in the real estate sector. A favourable Energy Performance Certificate (EPC), for example, may provide useful information about a property’s energy performance, but it does not automatically demonstrate that the building is sustainable. Similarly, the installation of solar panels or other energy-efficient measures is not sufficient to qualify a real estate development as climate-neutral.

The key principle is that any claim must be proportionate to what can actually be demonstrated. Property developers, estate agents and other real estate professionals offering houses, apartments or other properties to consumers should therefore ask themselves: What exactly are we claiming? What does the claim relate to? Can we objectively substantiate it? The more specific the claim, the lower the risk of promising more than can be demonstrated.

Sustainability labels also require particular attention. A self-developed green logo or label cannot simply be used without proper justification. Moreover, merely complying with statutory environmental standards cannot be presented as a particular sustainability advantage where those standards apply to all comparable projects.

No long-term promises without a concrete plan

Ambitious commitments for the future are also subject to increased scrutiny. Any business claiming today that a project or its operations will be climate-neutral by 2030 must be able to support that claim with a concrete and realistic action plan. Targets must be measurable, with clear deadlines and the necessary resources in place, while progress must be monitored and independently verified. Sustainability ambitions are legitimate, but they cannot be limited to general marketing statements. Every future commitment must be backed by a plan that consumers can also verify.

Communications relating to carbon offsetting projects also require particular caution. It is prohibited to claim that a project has a neutral, reduced or positive impact on the climate on the basis of greenhouse gas emissions offsetting. Offsetting measures may be communicated separately, but they cannot be used to present the project itself as, for example, climate-neutral.

Communications under scrutiny

For property developers and estate agents, the main priority is therefore to critically review their current communications, both online and offline. Brochures, websites, social media, advertising boards and even sales pitches may contain sustainability claims that are too broadly worded.

Andersen in Belgium recommends that businesses systematically review their communications and ask three questions for each claim: What exactly are we claiming? Can we substantiate it? Does the supporting evidence relate to the entire project or only to a specific part of it? This is not solely a matter for the legal department. Marketing, sales, property development and sustainability teams should work together to assess these claims. The greatest risks often arise not from misleading intentions, but from overly enthusiastic communications that go beyond what can actually be demonstrated.

The new rules primarily target business-to-consumer (B2C) communications. Nevertheless, it is advisable to apply the same level of scrutiny to business-to-business (B2B) relationships. Although the rules on greenwashing directly concern B2C relationships, the issue is also attracting increasing attention in a professional context. It is entirely conceivable that these rules could eventually be invoked in cases of alleged greenwashing in B2B relationships.