EmpCo & Green Claims Directive

“The EmpCo rewards companies that are serious about the transition and are actively shaping it.”

With the Empowering Consumers for the Green Transition Directive (EmpCo) and the Green Claims Directive (GCD), the EU has established two sets of regulations to combat greenwashing. Although the GCD has been in the spotlight for years, the EmpCo is currently more relevant for companies: unlike the GCD, it has already been adopted at the EU level and will take effect in September 2026. For companies, this means creating transparency, providing evidence, and seizing the opportunity to position themselves credibly.

What is the EmpCo?

The EmpCo Directive (EU 2024/825) was adopted in March 2024 and must be transposed into national law by member states by March 27, 2026. The German Bundestag passed the draft bill on December 19, 2025, which introduces amendments to the Unfair Competition Act (UWG). Specifically, it clarifies provisions in Sections 5 and 3 of the UWG to prevent misleading environmental and sustainability claims.

The EmpCo applies across all industries to any company that markets products or services in the EU and requires them to base their sustainability communications on verifiable facts. The directive does not distinguish between B2B and B2C companies. As soon as a statement is included in communications with end customers, it falls under the EmpCo.

The key points of the EmpCo:

• Prohibition of blanket statements and vague terms such as “environmentally friendly” or “climate-neutral” if no clear evidence is available
• Proprietary, non-certified environmental labels will no longer be permitted
• Statements about the future must be backed by an implementation plan with interim goals and publicly accessible commitments
• Expansion of consumer protection to include essential product characteristics such as durability, repairability, and recyclability

The goal of the EmpCo:
A key objective of the EmpCo is to empower consumers and prevent greenwashing. As the EU states: “Consumers must be able to make informed purchasing decisions and thus contribute to more sustainable consumption patterns,” citing Commission studies that show the majority of environmental claims are vague, misleading, or unsubstantiated. The resulting loss of trust among consumers hinders the transition, as genuinely sustainable innovations become harder to identify.

What Is the Difference Between EmpCo and the Green Claims Directive?

The GCD supplements EmpCo by establishing technical requirements for the substantiation and verifiability of environmental claims. However, it was put on hold for the time being in June 2025 due to overly strict requirements. Among other things, it provided for an ex-ante review. This means that every environmental claim would have had to be validated by external experts prior to publication. It is currently unclear whether and when the GCD will be back on the agenda.

Common goals of both directives:

• Protecting consumers from misleading communication
• Preventing greenwashing
• ·Strengthening transparency and trust in environmental and sustainability claims as well as in labels

What companies can do now

1. Systematically review existing environmental and sustainability claims: Claims, images, graphic elements, and symbols that imply sustainability must be reviewed for compliance and verifiability.
2. Secure, document, and supplement evidence with communication: This also includes new mandatory disclosures regarding the durability, reparability, and recyclability of products.
3. Define processes: Raising awareness and establishing clearly defined approval processes between legal, marketing, and sustainability departments are becoming increasingly essential.
4. Invest in recognized certifications: Independent certifications strengthen a company’s credibility and help ensure that the required evidence is stored in a structured and verifiable manner.

With the EmpCo, the requirements for data and methods are increasing. Companies can use this data to further develop products and business models. In addition, the required data quality and transparency serve as an optimal foundation for (product) communication.

Benefits:

• Differentiation from competitors’ misleading claims
• Strengthening reputation and building trust
• Contributing to fair competition and sustainable change