What EmpCo and the Swiss Unfair Competition Act (UWG) Mean for Companies

Anyone advertising sustainability, climate neutrality, or CO₂ reduction in the DACH region is operating in an increasingly regulated environment. In the EU, the EmpCo Directive will take effect on September 27, 2026; in Switzerland, explicit rules against unsubstantiated climate-related claims have been in effect since January 1, 2025. Both sets of regulations pursue the same goal: to prevent greenwashing and make sustainability communications more verifiable.

What the EmpCo Directive Regulates in the EU

The directive is incorporated into national law against unfair competition—the UWG—in member states such as Germany and Austria and will take effect on September 27, 2026. It is primarily aimed at broad or insufficiently substantiated environmental and sustainability claims made to consumers. It covers not only text but also images, symbols, seals, brand names, and product names if they create the impression of a positive, neutral, or improved environmental impact.

Five points are particularly relevant:

1. General environmental claims are becoming riskier. Terms such as “environmentally friendly,” “green,” “climate-friendly,” or “biodegradable” must not be used in a blanket manner if no recognized outstanding environmental performance can be demonstrated. Demonstrability is crucial.
2. Claims must not be overstated. A claim about the entire product or company is problematic if it actually refers to only a single aspect.
3. Compensation-based product claims are prohibited. Claims based on compensation measures that assert a product or company has a neutral, reduced, or positive climate impact are considered unfair business practices.
4. Sustainability labels are subject to stricter regulations. Voluntary labels must be based on a certification system or have been awarded by a government agency. Self-created labels are therefore no longer permitted.
5. Promises for the future must be backed by substance. Statements to consumers such as “Net Zero by 2035” or “climate-positive by 2030” require clear, objective, publicly accessible, and verifiable commitments, as well as a realistic implementation plan with measurable and time-bound goals.

What Applies in Switzerland

As a non-EU country, Switzerland is not subject to the EmpCo Directive. Nevertheless, since January 1, 2025, Article 3(1)(x) of the Unfair Competition Act (UWG) has provided its own legal framework against greenwashing. This covers statements about the company itself as well as about goods, works, or services. The decisive factor is whether the statement can be substantiated by objective and verifiable evidence. The Swiss regulation focuses more narrowly on climate-related statements. Terms such as “climate-neutral,” “CO₂-neutral,” “climate-friendly,” “low-emission,” “net zero,” or “CO₂-reduced” are particularly relevant. However, even non-specific terms such as “environmentally friendly” may, depending on the context, have an implicit climate-related connotation and thus fall under the general prohibition against misleading advertising in the UWG. Ultimately, however, each case must be assessed individually.

The Key Differences Between EmpCo and the Swiss UWG

In terms of content, the EU requirements go beyond the Swiss UWG in several respects:
The scope of EmpCo is broader. The EU regulation addresses not only environmental claims but also social characteristics and other sustainability information, such as durability, reparability, or recyclability. The Swiss regulation, by contrast, focuses on climate-related claims, supplemented by the general provisions on misleading advertising in the UWG.

Offset-based climate neutrality claims are subject to stricter regulations. Specifically, the EmpCo prohibits offset-based climate neutrality claims at the product and company levels if they are based on offsets outside the company’s own value chain. In contrast, Switzerland does not generally prohibit such claims in corporate advertising provided they are clearly and comprehensibly contextualized, but rather requires clear, understandable, and verifiable contextualization.

Specific requirements for sustainability labels. Labels without a certification system or government issuance are prohibited. The Swiss UWG does not contain a comparably specific provision regarding sustainability labels, but it can address misleading labels or label claims through the general principles of the UWG.

What Companies Should Do Now

Companies that market their products in Germany, Austria, and Switzerland should not develop green claims in isolation within their marketing departments. Sustainability claims belong at the intersection of marketing, sustainability, product management, and legal affairs.

Existing claims should be systematically reviewed: What exactly is being claimed? Does the statement refer to a product, packaging, a location, or the entire company? What data and methods support the statement? Which parameters or supply chain components are included? And is the explanation easy for customers to understand?

Statements regarding climate neutrality, CO₂ reduction, offsetting, net zero, recyclability, and sustainability labels are particularly critical. Internal documentation for each green claim is essential, which means that approved wording should always be accompanied by supporting evidence, limitations of the statement, and country-specific notes.