If you do business in the European Union, you need to pay attention to the EU Empowering Consumers Directive (EmpCo). As concerns about greenwashing grow, EmpCo is introducing stricter rules for how companies communicate sustainability claims and use environmental labels.
EmpCo targets B2C communication and strengthens consumer protection. The directive is designed to give consumers clearer, more reliable information about the environmental and social impacts of the products they buy. At the same time, it creates a more level playing field for brands making credible sustainability commitments.
The directive covers all consumer-facing commercial practices, meaning it applies not only to packaging but also to websites, marketing materials, and other communications. Claims must not be made to consumers in reference to an entire product if they only apply to a specific aspect of the product, such as the packaging.
What’s Changing?
EU member states had to transpose EmpCo into national law by March 2026. The directive—which will go into effect on September 27, 2026—amends the Unfair Commercial Practices Directive to ban a range of practices related to two crucial areas:
- Display of sustainability labels: The directive bans the use of sustainability labels that are not based on an eligible certification scheme or have not been established by public authorities. It also clearly defines what a certification scheme is—and what criteria must be met—such as third-party verification.
- Making sustainability claims: The directive bans vague or generic and misleading environmental claims, including claims that misrepresent the scope or overall environmental impact of a company or product. Words or phrases to watch: “eco-friendly”, “sustainable,” “green,” “ecological.” Images, symbols, icons, colors, or brand names also constitute environmental claims within the meaning of EmpCo if they suggest an environmental impact.
The directive covers all consumer-facing commercial practices, meaning it applies not only to packaging but also to websites, marketing materials, and other communications. Before buying a product, consumers will receive better and more harmonized information on its durability and reparability. Consumers will also be better informed about their legal rights. In addition, vague environmental claims will be forbidden, meaning that companies will no longer be able to declare that they are “green” or “environmentally friendly” if they cannot demonstrate that they are. It will also be forbidden to display unreliable voluntary sustainability logos. In addition, unfair commercial practices linked to early obsolescence will be prohibited, such as false claims about the sustainability of an asset.
The Directive amends two existing consumer law Directives: the Consumer Rights Directive and the Unfair Commercial Practices Directive. It will make EU horizonal consumer law better fit for the green transition and will support the changes needed in consumer behavior to achieve climate and environmental objectives under the European Green Deal. The proposal was announced in the New Consumer Agenda and the Circular Economy Action Plan.
Environmental Claims & Labels
The following principles outline what to consider when using claims or labels:
- Future-oriented claims (e.g. “climate neutral by 2030”) require a credible implementation plan.
- Generic terms like “eco-friendly” or “green” can only be used if substantiated and verifiable.
- Labels and seals must be independent, transparent, and traceable.
- Offset-based claims can’t be used if they rely on offsets outside the value chain. Transparent climate action communication focuses on the reduction and decarbonization process rather than presenting “climate neutrality through offsetting” as a supposed end state. Companies can still advertise their investments in climate projects (including the purchase of carbon credits), but without making neutrality claims.
In short, companies wanting to use environmental claims need to prove them. While the definition of an “environmental claim” is broad, here’s a basic checklist of dos and don’ts for compliance:
- Do: Map claims to evidence, publish target plans, and provide third-party verification for any future-tense claims.
- Do: Audit labels; keep only credible or certified schemes.
- Don’t: Use vague green terms without top-tier, recognized performance.
- Don’t: Market offset-based products; focus claims on actual lifecycle impacts.
Robust evidence should be available for every environmental claim used. Thorough documentation facilitates internal approvals and reduces risks in the event of external audits or inquiries.
The European Commission proposed EmpCo after a 2020 consumer study found that “53.3 percent of the claims examined were vague, misleading or unfounded, and 40 percent were completely unsubstantiated.”
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