Basic Principles

Description

Example

Truthfulness

Contents, expressions, and methods of environmental labeling and advertising shall be based on facts and should be clear and accurate enough so that there is no risk of deceiving or misleading the public directly or indirectly.

Clarity of expression

Contents, expressions, and methods of advertisements – such as phrases (slogans), designs, location, and the size and color of fonts – shall be accurate and clear. In addition, such contents should not be likely to deceive or mislead the public directly or indirectly.

[Bad example] “No. 1 company in the industry recognized for sustainability by Newspaper X”
→ It is necessary to provide a detailed and clear explanation on the criteria used for the ranking.

Specificity of the subject

The labeling/advertising shall be indicated in a detailed manner so that the public can clearly recognize whether the label/advertisement pertains to all or part of the company (or whether the label/advertisement pertains to all or some of the company’s products).

[Bad example] “Introduction of eco-friendly fuel”
→ A company must label or advertise in a detailed manner such as “[XX]% of raw materials come from eco-friendly sources.”

Substantiation

The environmental claims used in corporate image advertising shall not be exaggerated beyond the actual degree of improvement in environmental friendliness, and the level of environmental improvement shall be presented to the public based on detailed grounds that are numerically meaningful.

[Bad example] “Water use and wastewater reduction by 2030”
→ It is necessary to present specific goals based on grounds that are numerically meaningful, such as “reduction of 50% by 2040 from the 2020 level.”

Voluntariness

Labeling/advertising shall not indicate that a company voluntarily made an environmental improvement when such environmental improvement was mandatory under applicable laws.

[Bad example] “Enhanced eco-friendly management by reducing air pollutants”
→ When emitting carbon dioxide at the given cap, a company’s labeling or advertisements should truthfully indicate, for instance, that “discharging emissions in line with the standards prescribed by applicable laws.” However, if the company emits less than the cap, its labeling or advertisements may refer to the specific amount of carbon reduction.

Completeness of information

There should be no risk of directly or indirectly misleading the public by omitting, concealing, or downsizing important information that is necessary for the public’s judgment.

[Bad example] “Group X is reborn as an environmentally-conscious company by expanding R&D and investment in eco-friendly businesses”
→ A company must disclose the ratio of investment expansion compared to the base year, as well as the amount of investment, etc.

Relevance

Labels/advertisements shall be made without misleading the public with regard to improvements in environmental impacts that are unlikely to occur; also, labels/advertisements shall be directly related to a company’s business activities.

[Bad example] “Corporate activity to reduce plastic by introducing paper straws at a café in the company”
→ If the amount of plastic that is reduced due to the introduction of paper straws is insignificant in light of the overall amount of plastic waste generated by the company, such an advertisement may be misunderstood as contributing greatly to the improvement of environmental impacts. Therefore, to the company’s advertisement on the reduction of plastic waste should instead cover (i) the company’s production processes that generate a large amount of plastic waste or (ii) the company’s decision to switch away from plastic-heavy raw materials.

Verifiability

Labels/advertisements shall be verifiable based on the latest objective and scientific evidence that is accurate and reproducible.

Type

Key Details

Example

Labels/advertisements with regard to the intent to operate a business in an eco-friendly manner

• When labeling/advertising with the intent to operate a business in an eco-friendly manner (such as setting an environmental management policy and goals), a company should specify the timing of each milestone and present a specific plan for each period or stage to achieve the goals.

• A company’s future goals and commitment must be proportional to the company’s substantial efforts, and substantiating materials (a declaration, detailed implementation plan, roadmap, etc.) are necessary to support such commitment.

[Bad example] “50% reduction in greenhouse gas emissions by 2030” (there is a risk of violating truthfulness, specificity, completeness, and verifiability principles)

[Good example] “50% reduction in greenhouse gas emissions by 2030 from the 2020 level: 20% by 2024 → 30% by 2026 → 50% by 2030”

[Good example] “We are increasing the share of ESG investment (climate change, renewable energy, etc.) by X%* every year for sustainable management”
*{(Annual investment in ESG business)*100}/(Annual investment in business)

Labels/advertisements on the acquisition of environment-related certifications, etc.

• Environment-related certifications, selections, patents, awards, etc., shall be indicated/advertised as they are, including the facts (details) of acquisition and the scope (value) of recognition. In addition, such details must be accompanied by the name of the entity that granted such certifications, selections, patents, awards, etc.

• A certification/patent for a limited duration shall be labelled/advertised only during its valid period.

[Bad example] “Since obtaining the Eco-Friendly Hotel Service Certificate in 2013 for the first time among hotels in Korea, we have been actively taking the lead in eco-friendly activities at our hotels through continuous renewal” (there is a risk of violating truthfulness, completeness, and verifiability principles).

[Good example] “Resort X obtained the Zero Waste to Landfill (“ZWTL”)* certification (gold grade) in 2022 by achieving a 95% workplace recycling rate”
*ZWTL certification ratings: Silver (recycling rate 90-94%), Gold (95-99%), Platinum (100%)

Labels/advertisements about reduction of greenhouse gas emissions

• When labeling or advertising a future plan to reduce greenhouse gas emissions, the future plan shall be presented along with the amount of greenhouse gas emissions, the target reduction amount, the target year for reduction (short-term, medium-term, and long-term), etc.

• Companies eligible for the allocation of mandatory greenhouse gas reduction targets shall label/advertise based on their greenhouse gas emission reductions.

[Bad example] “We will reduce greenhouse gas emissions by 68 million tonnes throughout the entire process (materials-production-transportation-use-recycling/disposal) by achieving carbon reduction certification by 2050” (there is a risk of violating truthfulness, specificity, reasonableness, completeness, and verifiability principles).

[Good example] “Achievement of GHG emission allocated (70,000tCO₂-eq)” in the case of complying with legal obligations, and “Achievement of emission reduction (65,000tCO₂-eq), which represents 7.1% more reduction than the GHG emission reduction target” in the case of voluntary environmental improvement.

[Good example] “Company X will try to reduce greenhouse gas emissions by 75% by 2050 for the Earth”
- GHG emission reduction target years: (i) Base Year: 2018; (ii) Mid-term Goal: 2030; and (iii) Final (Long-term) Goal: 2050.
- GHG emission reduction target: Achieve 75% reduction in greenhouse gas emissions by 2050 from the 2018 level.
- Verification: The relevant label/advertisement has been verified by a third-party (specialized) verification agency, Y.

Labels/advertisements about Carbon Neutrality Claims

• A company shall provide accurate information as to whether carbon neutrality claims are based on carbon emissions reduction (direct and indirect) or offsets.

• A company shall provide information on a reliable scientific offset framework for claims based on offsets.

[Bad example] “Company X plans to announce a 2040 carbon neutrality vision to focus on reducing greenhouse gas emissions through process efficiency in the short term. Company X aims to realize complete carbon neutrality by developing innovative technologies and expanding eco-friendly business in the mid- to long-term” (there is a risk of violating truthfulness, specificity, completeness, and verifiability principles).

[Good example] “Compensation for reduction in CO₂ emissions: 1.2 million tonnes of carbon emitted during flights (Gimpo-Jeju in 2023) will be offset by Project Y (third party verification has been completed and relevant information can be found on our website)”

Labels/advertisements regarding the expansion of the use of new and renewable energy

• A company shall present the share of new and renewable energy in the company’s total energy consumption (instead of presenting only the total amount of new and renewable energy used).

[Bad example] “Company X to switch to renewable energy sources for workplace electricity” (there is a risk of violating truthfulness, specificity, reasonableness, and verifiability principles)

[Good example] “Company X is gradually expanding the ratio of new and renewable energy to improve energy efficiency”
※ Share of new and renewable energy in total energy consumption: 5% in 2020 → 9% in 2021 → 20% in 2022

Labels/advertisements with regard to the reduction in use of raw and subsidiary materials and water

• A company shall provide specific figures along with significant results relating to the impact of business activities on the environment (such as water resource protection activities) by reducing water use and reducing the use of raw and subsidiary materials through recycling.

[Bad example] “Production of packaging materials using the XX process reduces the use of ink by up to 1,600 tons a year” (there is a risk of violating truthfulness, specificity, reasonableness, and verifiability principles)

[Good example] “20% reduction in the use of raw and subsidiary materials in the production of the same quantity of products in 2021 compared to 2020”

Labels/advertisements relating to the reduction of waste generation

• The base year to be compared must be specified in detail, and labeling/advertising shall be made by including specific numerical figures (KRW in consideration of organizational characteristics such as production volume, sales revenue, etc.) that are calculated based on the same standard so as that they can be reasonably compared to those of the base year.

[Bad example] “Plan to reduce waste generation by 80% by introducing new facilities to realize eco-friendly plants” (there is a risk of violating truthfulness, specificity, reasonableness, relevance, and verifiability principles)

[Good example] “For the environment, we strive to maintain a recycling waste rate of 30% or higher every year”
※ Ratio of waste recycling to production (2022) target 30% / performance 34% Ratio of waste recycling to production (2023) target 35% / performance 40%

Labels/advertisements with regard to support for subcontractors’ environmental management

• A company must clearly label and advertise its efforts to support its subcontractors’ environmental management (e.g., by providing education, technical, financial, and facility support)

[Bad example] “Company X has strengthened its commitment to win-win cooperation by promising to provide KRW 50 billion in subsidies for water management of its subcontractors” (there is a risk of violating truthfulness, specificity, completeness, and verifiability principles).

[Good example] Company X’s Public Transportation Campaign: “We are seeking to reduce greenhouse gas emissions through public transportation campaigns; these campaigns will promote our employees and subcontractors’ employees to ride public transportation three times a week. We will provide reward points to those who certify riding public transportation three times a week”