EmpCo Directive protects against greenwashing

Stricter requirements for environmental and sustainability claims

With the EmpCo Directive (“Empowering Consumers for the Green Transition”), the European Union has taken a significant step to protect consumers from misleading environmental and sustainability promises. The directive is part of the European sustainability strategy and aims to promote sustainable consumption and more effectively curb greenwashing.

For companies – particularly in retail, the food industry, and the consumer goods sector – this means that claims about environmental benefits, climate impact, or sustainable production in advertising, online shops, and product labeling must be formulated even more carefully and supported by solid evidence in the future.

Growing importance of environmental advertising – and increasing risk

In recent years, advertising with an environmental focus has significantly increased. Terms such as “climate-neutral,” “environmentally friendly,” “sustainable,” or “green” can be found on numerous products and marketing materials. At the same time, EU investigations have repeatedly criticized that many of these claims are too general, unclear, or not sufficiently substantiated. Consumers often cannot discern what the promise is concretely based on – such as measurable emissions reductions, certain production standards, or merely compensation measures.

The EmpCo Directive aims to contribute to more transparency here and sharpen boundaries for misleading environmental advertising.

Reference to fairness law: Unfair business practices in focus

Legally, the EmpCo Directive builds on the EU framework for protection against unfair business practices (particularly Directive 2005/29/EC). The EmpCo Directive expands this framework by explicitly regulating certain environmental and sustainability claims more strictly. This increases the risk that imprecise or unsubstantiated environmental claims are classified as misleading and therefore inadmissible.

General statements are particularly in focus. Claims like “environmentally friendly,” “sustainable,” “green,” or “climate-neutral” should in the future only be used when

• it is clearly explained to which specific aspects of the product or service the statement refers (e.g., material, packaging, transport, production, usage phase), and
• the statement is supported by comprehensible, verifiable evidence (e.g., reliable data, recognized methods, transparent calculations).

In practice, this means that general “feel-good” formulations without substance become legally riskier – especially if the overall impression to the consumer suggests a much higher environmental level than can actually be substantiated.

Climate neutrality promises: Compensation must not replace reduction

A central point concerns so-called climate neutrality promises (“CO₂-neutral,” “climate-neutral”). In the past, such claims often relied on compensation, for example, through the purchase of certificates or the promotion of climate protection projects, without substantial emission reductions in their own value chain.

The EmpCo Directive clarifies that companies must make clear what the statement is based on in such cases. Above all, it must not give the impression that a product causes no emissions when emissions do occur and are merely offset. Transparency is therefore crucial – for example, through clear information on whether and to what extent emissions have been reduced and what role compensation measures play.

Sustainability seals and environmental labels: More clarity instead of a flood of labels

Consumers are faced with a multitude of sustainability seals and environmental labels, whose significance is often difficult to assess. In addition to established systems, there are company-specific signs or labels with unclear criteria.

The EmpCo Directive addresses this: Sustainability seals should generally only be permissible if they are based on a governmental system or on a system that is verified by an independent body. Labels without comprehensible criteria and without independent control thus become more legally vulnerable.

For companies, this means: Anyone working with seals should know and document their basis, testing methodology, and independence – and ensure that the depiction does not give consumers a false impression about the scope and rigor of the examination.

New information requirements: Durability, repairability, and updates

The EmpCo Directive also includes new information obligations intended to support consumers in making sustainable purchasing decisions. The EU aims to accelerate the transition to a resource-efficient circular economy.

Companies should provide more transparent information about sustainability-related product characteristics, particularly about:

• Durability and lifespan,
• Repairability and any repair restrictions,
• Aspects of the usage duration for digital products, e.g., available software updates and their impact on functionality.

Especially for digital products, the update policy can be a crucial criterion for the actual lifespan. Unclear or promotional statements without substantial information can quickly become a legal risk – for instance, if a “long usage duration” is suggested, but essential updates are only provided for a short time.

Practical implications: Marketing, product communication, and evidence

There are significant practical implications for companies. Sustainability and environmental claims should be checked before publication – not only for linguistic clarity but especially for verifiability and transparency. It is particularly recommended:

• specific, limited claims instead of general promises,
• internal documentation of the data basis and calculation methods,
• clear consumer information (e.g., via link/QR code) on criteria, system boundaries, and assumptions,
• verification whether the overall impression of the advertisement (images, colors, seal appearance) suggests a stronger environmental impact than substantiated.

Competition law risk: warnings and cease-and-desist claims

The topic is also gaining importance in terms of fairness law. Misleading environmental advertising can lead to cease-and-desist claims and warnings from competitors or qualified associations. Additionally, depending on national implementation and individual cases, official measures and sanctions may be considered.

Companies should therefore critically review existing advertising statements, packaging texts, online product pages, and social media campaigns and adapt them if necessary. An early review is often economically more sensible than a later confrontation with the effort of cease-and-desist, recall, or adjustment.

Important note on implementation in national law

EU directives do not generally apply directly to companies but must be implemented into national law by the member states. Even though the EmpCo Directive provides the framework, the specific obligations, deadlines, and enforcement mechanisms are decisive in the national implementation. Companies with cross-border marketing should therefore ensure that statements in various EU markets are consistent and legally compliant in each case.

MTR Legal Attorneys advise on competition law.

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Editorial note: This article serves general informational purposes and does not constitute individual advice. For the assessment of specific advertising claims, the circumstances of the individual case and the respective applicable national implementation are always decisive.