CFA Institute Sustainable-Investing Question Answer
The European Union (EU) Ecolabel:
Is a mandatory label for companies that apply sustainability labels on their products
Certifies products that have a guaranteed, independently verified, low environmental impact
Contains a list of six key principles designed to prevent businesses from making misleading environmental claims
TheEU Ecolabelis avoluntary certificationthat identifies products and services withlow environmental impactover their lifecycle. Products awarded theEU Ecolabelmeet strict environmentalstandards verified by independent audits.
It isnot mandatory (A)and does not primarily focus on greenwashing prevention (C), although it contributes to reducing misleading claims.
TESTED 01 Jan 2026
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