Sustainability is increasingly becoming a cornerstone of business operations, but how is it reshaping branding and marketing strategies? Over the past several years, the importance of ensuring that manufacturing and consumption practices are sustainable has gained prominence among firms and consumers alike. This shift has prompted businesses to focus on the sustainability of their products and services, along with a growing desire to communicate this commitment to consumers. This evolution has given rise to "sustainable branding," a movement where environmental and social responsibility become key elements of a brand's identity and messaging. More specifically, sustainability branding is the process of focusing and integrating identified environmental, economic and social issues into the operations of a business.
EUIPO filings for green trade marks
From an intellectual property (IP) perspective and among other things, sustainable branding can be supported by the use of “green trade marks”. The phrase is used here to mean trade marks related to environmental protection and sustainable development. According to data made available by the European Union Intellectual Property Office (EUIPO), filings of green trade marks have continuously increased in absolute numbers and as a share of total EU trade mark (EUTM) applications since 1996. Between 1996 and 2022, green EUTMs accounted for 11% of all EUTM filings, with EU-based firms contributing to over 60% of these applications. Germany leads among EU member states in registering green trade marks, followed by Italy, France, and Spain. Outside the EU, China is the leading country in this area. This resilience of green trade marks underscores the growing importance of sustainability in branding and the European market's commitment to environmental issues.
While going “green” is certainly good, what are the “red” flags to look out for when adopting and seeking to register a mark as part of your sustainable branding? Applicants must remember that the signs they register should not mislead or deceive the public. A trade mark that falsely suggests environmental friendliness could be denied registration or even revoked later if it ends up misleading people. It is equally important to recall that it is not possible to register trade marks that do not function as indicators of commercial origin (in other words: trade marks that lack distinctiveness) or are descriptive. For example, the General Court of the EU recently upheld the decision of the EUIPO not to register the trade mark “Sustainability through quality” because consumers would not perceive it as an indicator of commercial origin.
Sustainable branding beyond trade marks
Of course, the topic of sustainable branding is much broader than what discussed so far and other IP rights also do play a role as part of a comprehensive strategy. For instance, green patents are crucial for protecting innovations that help reduce environmental impact. A mention is also due to geographical indications (GIs). GIs can help strengthen the links between a product and other local activities such as cultural activities, tourism, and art, as well as supporting broader societal goals like sustainability.
Design can also be a pivotal part of sustainable branding. It allows companies to create products that are not only environmentally friendly but also visually appealing to consumers, which – together with trade mark protection – enhance brand recognition and loyalty among those who prioritize sustainability. Design protection, in turn, enables companies to legally safeguard their unique eco-friendly product designs. This not only differentiates their design in a crowded market but also reinforces their commitment to sustainability, attracting consumers who value environmental responsibility.
The EUIPO's DesignEuropa Awards have showcased some of Europe's leading sustainable designers over the years. Indeed, sustainability and environmental impact serve as key criteria for evaluating nominees and selecting winners. It is also worth recalling that the recipient of the 2023 DesignEuropa Lifetime Achievement, Swedish designer Maria Benktzon, devoted her career to creating designs for all, also driven by awareness that universal designs create better environments for all of us.
Greenwashing
When it comes to using trade marks on the market as part of sustainable branding, undue claims of “greenness” and sustainability – or “greenwashing*”* – may be also repressed. Recently, the EU legislature adopted the Directive on empowering consumers for the green transition, which is aimed at harmonizing the laws of EU Member States in this area. Another directive, the Green Claims Directive, is still being negotiated at the time of writing.
Both directives contain measures to contrast any untruthful messages or representation which state or imply that a product or trader has a positive or no impact on the environment or is less damaging to the environment than other products or traders, respectively, or has improved their impact over time. The Green Claims Directive, in particular, will introduce measures against greenwashing and misleading environmental claims for the benefit of consumers.
Sustainability as an imbedded practice
With the effects of climate change being visible to and felt by all of us, together with the resulting societal inequalities, sustainability cannot be simply a vague aspiration or a “slogan”: it needs to be a reality. In this sense, it is clear that IP – together with an integrated IP strategy – can also play a pivotal role in ensuring that firms’ sustainable branding strategies reflect the reality of a commitment that needs to be embraced by society at large.