Sustainability claims and greenwashing in Turkiye

• New criteria for the Turkish Ecolabel which is recognised by GEN
• Enhancement of potential consumer claims due to greenwashing
• Turkey publishes draft climate change law

What are the top 3 developments in your territory concerning green claims and the associated risk of greenwashing? 

In parallel with the steps being taken worldwide to achieve sustainability goals, a significant increase in awareness can be observed in Turkey, both among companies and individuals. While companies are attempting to adapt their businesses to contribute to a greener world with the aim of becoming sustainable businesses fit for the future, regulators are developing the principles of sustainability by issuing regulations and monitoring companies' activities. As consumer preferences are significantly influenced by sustainability practices, green claims and the associated risk of greenwashing are expected to increase in the near future. 

We have identified the following 3 recent developments in Turkey to help prevent greenwashing: 

1. New criteria for the Turkish Ecolabel which is recognised by GEN 

In 2018, Turkey introduced a new regulation, namely the “Environmental Label Regulation” (“Regulation”), that governs ecolabels in line with the EU Ecolabel Regulation 66/2010/EC, with the aim of "incentivising products and services with minor environmental impact, providing the consumers with accurate and scientifically supported flow of information for the objective of a sustainable environment". 

Ecolabels are awarded on the basis of attentive assessments of the environmental performance, action plan and compliance with strict criteria for the product or service in question. Accordingly, ecolabels provide consumers with credible information on environmental impacts and allow them to make an informed choice without having to question the actual actions of the company offering the label, as one of the main principles of ecolabels is transparency in environmental information. 

In October 2020, the Turkish Ecolabel was recognised by GEN, a non-profit association of leading ecolabelling organisations worldwide that aims to contribute to environmental protection by improving, promoting and developing ecolabels for environmentally friendly products and sustainable services. 

Turkey has published 9 lists of criteria for various products, including self-care products and cosmetics, textiles and glassware. In March 2022, Turkey published the latest set of criteria that govern the requirements for the ecolabel for dishwashing detergents. These criteria give Turkish consumers the opportunity to make informed choices based on credible information about the environmental impacts of the products and services they consume. 

Under the Regulation, the Ministry of Environment, Urbanization and Climate Change (the “Ministry”) shall carry out market supervision and surveillance of the usage of ecolabels in an inter-institutional manner. In case of any complaints regarding a product or a service with an ecolabel, the Ministry shall notify the user of the ecolabel and request its response to the complaint within 7 days. 

If the Ministry determines that the products or services bearing the ecolabel do not comply with the determined criteria or that the ecolabel is not used in accordance with the provisions of the Regulation, the ecolabel user shall be prohibited from using the ecolabel. The Ministry may also announce the prohibition decision on its website or by any other appropriate means. In this respect, the Ministry is given a proactive role with respect to greenwashing implementations. 

As there are no restraints, limitations or specifications regarding complaints related to ecolabels, considering the proactive role attributed to the Ministry, it is possible for all relevant parties to direct such complaints. 

2. Enhancement of potential consumer claims due to greenwashing 

Currently, there are only a few examples of lawsuits based on green claims in Turkey. However, in parallel with the significant increase in consumer awareness, we may see a considerable increase in the number of lawsuits in the future where consumers make claims related to greenwashing. 

The main legislation that allows claims based on greenwashing practices are the Consumer Protection Law No. 6502 (Tüketicinin Korunması Hakkında Kanun, the “Consumer Law”), the Turkish Commercial Code No. 6102 (Türk Ticaret Kanunu, the “Commercial Code”), the Regulation and the Environmental Law No. 2872 (Çevre Kanunu, the “Environmental Law”). In addition, several secondary pieces of legislation could also affect greenwashing claims, such as the Corporate Governance Communique and the Framework for Compliance with Sustainability Principles of the Capital Markets Board. 

Under the Consumer Law, consumers have the right to claim damages if the advertised goods do not have the characteristics indicated by the seller or do not have the characteristics indicated on the packaging, advertising and label, under the concept of “defective goods”. In addition, the Consumer Law provides for sanctions and fines in cases of non-compliance with prohibitions related to advertising, in particular those relating to the prohibition of misleading consumer advertising  and to the prohibition of misleading practices that are considered unfair commercial practices. 

On the other hand, the Commercial Code stipulates that misleading statements about goods, business products, activities and business relationships can constitute unfair competition, which entails both civil and criminal liability, including claims for damages. 

In general, Turkish governmental authorities tend to adopt strict and tight measures with respect to sensitive matters such as renewable energy, public health and food safety. Such matters are usually connected with ESG principles and could also be subject to greenwashing implementations. Especially in recent years, food security and nutrition have become major consumer preference criteria and therefore the risk of greenwashing in these fields has been exposed. 

3. Turkey publishes draft climate change law 

In 2022, the Ministry of Environment, Urbanization and Climate Change published a draft “Climate Change Law” (“the Draft Law”).  

The purpose of the Draft Law is to limit the increase in global average temperature, to establish the necessary legal and institutional framework for the gradual reduction of greenhouse gas emissions and adaptation to climate change. Its aim is to ensure that current and future generations are protected from the adverse effects of climate change in line with the principle of sustainable development.  

The Draft Law aims to contribute to limiting the global average temperature increase below 1.5°C, determine the relevant technical and financial requirements and the procedures and principles necessary for the transition to a low-carbon economy and the realisation of country-wide greenhouse gas reduction targets. The Draft Law aims to ensure resilience and adaptation to climate change based on scientific knowledge, by taking into account environmental, social and economic benefits and encouraging the use of renewable energy resources, energy efficiency and renewable energy investments. 

The Draft Law proposes to introduce several new concepts such as “Emission Trade System” and “Energy Efficiency Certificate Trade”.  

Under the Draft Law, an “Emission Trade System” is a system that directly or indirectly limits and/or encourages the limitation of greenhouse gas emissions and activities that cause greenhouse gases by buying and selling greenhouse gas emission allowances based on the principle of upper limit emission. To the extent that they relate to climate change and the emission trade system, emission reduction certificates, energy efficiency certificates (white certificates) and renewable energy certificates (green certificates) are proposed to be introduced by the Draft Law. 

The Draft Law is also expected to contribute to the range of potential legal grounds of green claims and ensure a tightly regulated emission control system which allows transparency and accountability. 

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