EmpCo Directive

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

With the Directive on Empowering Consumers for the Green Transition, or EmpCo for short, the EU has introduced clear requirements for environmental and sustainability claims. Since 27 September 2026, the new rules have also applied in Germany. They were implemented into national law through amendments to the German Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb, UWG).

For companies, this means that environmental and sustainability communication must be specific, understandable and substantiated. Vague claims, unverified sustainability labels or climate neutrality claims based solely on offsetting may entail legal risks.

At the same time, EmpCo also creates an opportunity: companies that can substantiate their sustainability performance and communicate it transparently can build trust and position themselves credibly in the market.

What is the EmpCo?

The EmpCo Directive (EU) 2024/825 was adopted on 28 February 2024 and published in the Official Journal of the European Union on 6 March 2024. Member States were required to transpose it into national law by 27 March 2026. Since 27 September 2026, the corresponding national provisions have been applicable.

In Germany, implementation took place primarily through amendments to the UWG. These amendments introduced, among other things, new definitions, clarified the provisions on misleading commercial practices and expanded the so-called “blacklist” of commercial practices that are prohibited in all circumstances.

The primary focus is the protection of consumers. The rules cover commercial practices and claims that are directed at end consumers or may influence their purchasing decisions.

These include, for example:

• corporate and product websites,
• online shops,
• product packaging and labels,
• advertisements and brochures,
• social media posts,
• sustainability labels, graphics and symbols,
• product names and other elements of commercial communication.

Companies with a predominantly B2B-oriented business model may also be affected if their environmental or sustainability claims are used in communication directed at consumers.

Key aspects of EmpCo

• A ban on broad and generic environmental and social claims and vague terms such as “environmentally friendly” or “climate neutral” where there is no clear supporting evidence.
• Products may no longer be advertised as “climate neutral” or “CO₂-neutral”. Companies may, however, continue to communicate transparently about their support for climate protection projects. In doing so, they must clearly distinguish between actual emissions reductions and the financing of external climate protection measures.
• Proprietary environmental labels that are not certified will no longer be permitted.
• Claims relating to future environmental performance must be supported by an implementation plan with interim targets and publicly accessible commitments.
• Consumer protection is extended to include essential product characteristics such as durability, repairability and recyclability.

Objective of EmpCo

The central objective of EmpCo is to protect consumers from misleading commercial practices and enable them to make informed purchasing decisions. Companies are expected to provide clear, relevant and reliable information.

This is intended to make it easier to distinguish credible sustainability performance from unsubstantiated or misleading claims. At the same time, the Directive strengthens fair conditions of competition for companies that demonstrably invest in more sustainable products, processes and business models.

What companies can do now

Since 27 September 2026, the focus is no longer on preparing for EmpCo, but on consistently implementing its requirements in ongoing communication.

• Systematically review and immediately update existing and future environmental and sustainability claims: Websites, claims, images, visual elements and symbols that imply sustainability should be reviewed for compliance and substantiation.
• Secure, document and supplement supporting evidence in communications: This also includes new mandatory information relating to the durability, repairability and recyclability of products.
• Define processes: Awareness-building and clearly defined approval processes between legal, marketing and sustainability teams are becoming increasingly essential.
• Invest in recognised certifications: Independent certifications strengthen credibility and help ensure that the required evidence is documented in a structured and verifiable manner.
• Substantiate future claims: Targets and commitments relating to future environmental performance should be backed by a realistic implementation plan, clear interim targets, specific measures and transparent monitoring.
• Handle existing stock carefully: In principle, EmpCo also applies to existing product and packaging stock. However, for goods that were already placed on the market before 27 September 2026, Section 15b of the UWG, as adopted in Germany, provides for a specific proportionality assessment for injunctive claims over a period of two years. Factors that may be taken into account include the severity of the infringement, measures already taken to make adjustments, the resulting costs and potential environmental impacts associated with destroying goods. However, this does not constitute a general transitional period or sell-off period and does not remove the need for companies to take action.

From compliance to better communication

EmpCo raises the requirements for data and methodologies. Companies can use this data to further develop their products and business models. In addition, the required level of data quality and transparency provides a strong foundation for product and corporate communication.

Benefits of EmpCo-compliant communication:

• Differentiation from misleading or unfair claims made by competitors
• Strengthening reputation and customer trust
• Contributing to fair competitive conditions and credible sustainable transformation