New EU Greenwashing Rules: What Companies Need to Know

The EU's Empowering Consumers for the Green Transition Directive (Directive (EU) 2024/825, EmpCo Directive) amends the Unfair Commercial Practices Directive (UCPD) and the Consumer Rights Directive (CRD) to tackle greenwashing and misleading sustainability claims. Member States were required to transpose the EmpCo Directive into national law by 27 March 2026, with the implementing measures to be applied from 27 September 2026. Key changes to the UCPD include, among other things, per se bans on generic environmental claims, stricter requirements for forward-looking environmental commitments and new controls on sustainability labels.

The EmpCo Directive applies to any business-to-consumer (B2C) commercial practice – catching any company that markets goods or services to consumers using environmental or sustainability-related messaging. This includes consumer goods, packaging, energy, manufacturing, as well as services (e.g. healthcare, banking and finance). Compliance with sector-specific regulations does not automatically satisfy these new requirements when other voluntary statements are being made. Some Member States have also implemented the new regulations to apply B2B.

What you need to know

• New per se bans: The EmpCo Directive prohibits a range of greenwashing practices outright. These include making generic environmental claims (such as "green", "eco-friendly" or "climate friendly") without demonstrating recognised excellent environmental performance, and claiming that a product has a neutral, reduced or positive climate impact based on offsetting greenhouse gas emissions.
• Stricter rules for forward-looking claims: Environmental claims about future performance (such as net-zero commitments) must be backed by clear, objective, publicly available and verifiable commitments in a detailed implementation plan. An independent third-party expert must verify that plan regularly.
• Sustainability label controls: Sustainability labels may only be displayed if they are based on a certification scheme established by public authorities or which otherwise meets specified transparency and third-party monitoring criteria.
• Broad scope beyond consumer goods: The EmpCo Directive applies to all B2C commercial practices concerning a "product" i.e. a "good or service". This captures not only consumer goods but all range of services, e.g. tourism, hospitality, transport, energy, rental, banking and finance, healthcare etc.

The EmpCo Directive is a key part of the EU’s efforts to combat greenwashing – the practice of making false or misleading claims about the sustainability credentials of a product or service. It aims to empower consumers for the green transition by ensuring they receive reliable information and are protected against unfair commercial practices.

Member States were required to transpose the EmpCo Directive into national law by 27 March 2026 and must apply the implementing measures from 27 September 2026. As of September 2026, sixteen Member States have transposed the Directive, while eleven have not yet done so. The European Commission published a Q&A on the EmpCo Directive in June 2026, which provides further interpretive guidance on several provisions.

Who is in scope and which claims are covered

The EmpCo Directive has a broad reach. It applies to any B2C "commercial practice", as defined under the UCPD – any act, omission, course of conduct, commercial communication or marketing by a "trader" that is directly connected with the promotion, sale or supply of a product to a consumer. A "consumer" is any natural person acting for purposes outside their trade, business, craft or profession. In some Member States (such as Italy), micro-enterprises receive the same protections. A "product" covers any good or service. In practice, most consumer-facing commercial services can potentially fall within the new rules, including tourism, hospitality, transport, financial services, digital services, professional services, utilities, leisure, etc.

This means that any company making environmental or sustainability-related claims in communications directed at consumers falls within scope – whether those claims relate to consumer goods and packaging, energy, manufacturing, financial services or any other sector. Even in highly regulated sectors, voluntary marketing communications that draw on regulatory disclosures are also caught.

The EmpCo Directive primarily targets B2C communications. However, if a B2B communication is made accessible to consumers (such as through a consumer-facing website) or is voluntarily referred to in consumer-facing materials, it may also fall within scope. As noted above, some Member States have gone further and have extended the rules to B2B representations, particularly where such communications may form part of a commercial practice affecting consumers.

Brand names and product names are not exempt, even where they are protected by intellectual property rights. If terms such as "green", "eco" or "natural" appear in a brand or product name in a way that is likely to create an environmental association for the average consumer, this may constitute an environmental claim requiring substantiation. The European Commission's Q&A confirms that national authorities should be able to take action against traders using brand names that constitute misleading claims, without being hindered by existing intellectual property rights.

Corporate sustainability reporting (such as annual sustainability reports or disclosures required under the Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464)) typically falls outside the scope of the UCPD, because such reports are often mandatory and are addressed to investors rather than consumers. This will also apply to the new provisions introduced by the EmpCo Directive. However, if a company uses information from its sustainability report in voluntary advertising or marketing directed at consumers, that communication may fall within scope.

Key definitions

The EmpCo Directive introduces a set of key definitions into the UCPD that underpin the new prohibitions and disclosure requirements. The most important are:

What the EmpCo Directive changes…

…in the UCPD

The UCPD is the EU's primary horizontal framework for regulating unfair business-to-consumer commercial practices. It includes general prohibitions against: (i) commercial practices that are contrary to professional diligence and materially distort (or are likely to distort) the economic behaviour of the average consumer; (ii) misleading commercial practices and (iii) aggressive commercial practices. It also includes a blacklist of practices that are unfair in all circumstances.

The EmpCo Directive makes three sets of changes:

First, it expands the scope of misleading practices that can be assessed on a case-by-case basis to include specific environmental factors. The list of product characteristics about which consumers must not be misled under Article 6(1) UCPD now includes environmental and social characteristics and circularity aspects such as durability, reparability and recyclability. This confirms that claims about a product's environmental or social credentials – whether on a food label, or a consumer electronics product page – may be assessed as misleading following an individual assessment.

Second, two new categories of potentially misleading practices are added to Article 6(2) UCPD:

• Unsubstantiated future environmental claims: Environmental claims about future performance (such as a commitment to reach net zero by a certain date) are prohibited where they are not backed by clear, objective and publicly available commitments set out in a detailed and realistic implementation plan. These commitments must be regularly verified by an independent third-party expert whose findings are made available to consumers.
• Irrelevant benefit claims: Advertising benefits to consumers that are both irrelevant and do not result from any feature of the product or business is prohibited – for example, claiming that bottled water is "gluten-free" or that paper sheets do not contain plastic. Both conditions must be met: the benefit must be irrelevant and must not result from any specific feature of the product. By contrast, advertising “nickel-free” jewellery could be compliant, because some jewellery does contain nickel and consumers may actively seek to avoid it.

Third, where a trader provides a comparison service relating to the environmental, social or circularity aspects of products, the method of comparison, the products compared, their suppliers and the measures to keep the information current must be disclosed as material information under a new Article 7(7) UCPD. The European Commission's Q&A clarifies that the method of comparison must be explained to ensure that it can be fully understood by the average consumer.

…in the CRD

The CRD is the EU's framework for pre-contractual information requirements in consumer transactions, covering both on-premises and distance contracts. It requires traders to provide specified information to consumers before the contract is concluded.

The EmpCo Directive amends the CRD to add new pre-contractual information requirements focused on durability, reparability and software updates. Traders must now provide consumers, before concluding the contract, with the following additional information:

• the existence of a producer's commercial guarantee of durability (where applicable and of more than two years' duration), using a harmonised label;
• the minimum period during which software updates will be provided for goods with digital elements, digital content and digital services;
• where applicable, the reparability score or other repair-related information; and
• a reminder of the legal guarantee of conformity, using a harmonised notice.

These CRD changes are primarily relevant for traders selling goods (including digital content). The reparability score requirement currently applies only to smartphones and tablets (since 20 June 2025), with other product groups expected to follow as implementing measures are developed under the Ecodesign for Sustainable Products Regulation. The broader principle – enhanced pre-contractual transparency on sustainability and durability characteristics – signals the direction of travel for consumer-facing disclosures across sectors.

The new greenwashing blacklist

The EmpCo Directive adds several practices to the Annex I blacklist of commercial practices prohibited in all circumstances. Unlike case-by-case assessments, these per se prohibitions apply without needing to demonstrate that the practice was likely to cause the average consumer to take a different transactional decision. The key additions are:

• Generic environmental claims: Making generic claims such as "eco-friendly", "green", "climate friendly", "biodegradable" or "energy efficient" is prohibited unless the company can demonstrate recognised excellent environmental performance relevant to the claim. Where the claim’s specification appears in clear and prominent terms on the same medium, it is not considered generic. The specification must appear next to or as part of the claim – if there is insufficient space to specify the claim, the claim should not be made at all. The European Commission's Q&A gives the example of "100% of energy used to produce this packaging comes from renewable sources" as a specific claim that would not fall under the prohibition.
• Offsetting-based neutrality claims: Claiming, based on the offsetting of greenhouse gas emissions, that a product has a neutral, reduced or positive impact on the environment is prohibited. The European Commission's Q&A gives examples of prohibited claims, including "climate neutral", "CO2 neutral certified", "carbon positive", "climate net zero", "climate compensated”, "reduced climate impact" and "limited CO2 footprint". Such claims are permitted only when based on the actual life cycle impact of the product, not on carbon credits outside the product's value chain. Companies may still communicate investments in environmental initiatives, including carbon credit projects, if the information is not misleading and is not linked to product-level neutrality claims.
• Partial claims presented as whole: Making an environmental claim about an entire product or business when it relates only to a certain aspect of the product or a specific activity is prohibited – for example, marketing a product as "made with recycled material" when only the packaging is recycled.
• Unsubstantiated sustainability labels: Displaying a sustainability label that is not based on a qualifying certification scheme or established by public authorities is prohibited. Voluntary market-based and public standards for green and sustainable bonds are expressly excluded from the definition of "sustainability label", as they are subject to specific laws and do not primarily target retail investors. The European Commission's Q&A clarifies that the sustainability label prohibition applies only to labels established by EU public authorities; labels established by non-EU public authorities are prohibited unless they are based on a qualifying certification scheme.
• Legal requirements as distinctive features: Presenting requirements imposed by law on all products in a category as a distinctive feature of a trader's offer is prohibited – for example, advertising that a product does not contain a chemical substance when that substance is already banned for all products in that category.

Several additional prohibitions target misrepresentations relating to planned obsolescence and durability of the good, including withholding information about software updates that impair functionality, presenting software updates as necessary when they only enhance features, and falsely claiming that a good has a certain durability.

The prohibition on offsetting-based claims in Annex I point 4c applies specifically at product level. Company-level offsetting claims remain subject to other UCPD provisions (including the general rules on misleading practices), but they are not covered by the banned practice. Companies may still communicate their investments in carbon credit projects if the information is not misleading and is not linked to product-level neutrality claims.

The European Commission's Q&A also clarifies that sector-specific EU rules take precedence where they regulate a particular issue. For example, food labelling under the EU Organic Regulation (Regulation (EU) 2018/848) may still use the term “organic”, even though it could otherwise be considered a generic environmental claim.

Where companies should pay attention

The EmpCo Directive has broad implications for consumer-facing businesses across sectors. The sections below highlight the key practical considerations for businesses.

• Substantiation of environmental claims: Every environmental claim must be specific, precise and capable of independent verification. Companies should maintain a robust evidence file for each environmental claim before publication, which should be updated as required. Vague or unsubstantiated claims – including aspirational language such as "committed to sustainability" – risk falling within the prohibition on generic environmental claims.
• Forward-looking commitments: Net-zero pledges, carbon-neutrality targets and similar forward-looking claims require a detailed and realistic implementation plan with measurable, time-bound targets, allocated resources and regular independent third-party verification. Aspirational language ("committed to", "aims to", "on track to") without a substantiated plan will not suffice. The European Commission's Q&A confirms that the third-party expert may be a private auditor or consultancy (not necessarily a public authority), provided that they are independent, free from conflicts of interest and competent in environmental issues. The EmpCo Directive does not prescribe a specific verification methodology or interval, but suggests regular (such as annual or biennial) reviews. The expert's findings must be made available to consumers, for example via a QR code on product packaging or marketing materials.
• Carbon offsetting: Product-level neutrality claims based on carbon offsetting are banned outright. Companies should distinguish between corporate-level offsetting activities and product-level environmental performance in all communications.
• Sustainability labels and imagery: Self-created logos, "green badges" or designs resembling a label are prohibited unless based on a qualifying certification scheme. Companies should also be aware that imagery (such as green leaves, nature graphics and planet icons) combined with written or oral text may constitute a generic environmental claim. Imagery alone, without accompanying text, cannot constitute a generic environmental claim – but may still be assessed as an environmental claim on a case-by-case basis.
• Scope of claims: Claims must accurately reflect their scope – a company should not claim its entire business or product is "green" when only one component or activity qualifies.
• Distribution channels: Companies should ensure that third-party distributors, agents and platforms do not make unauthorised sustainability claims about their products.

What to do now

Member States are required to implement the new rules by 27 September 2026. Key steps companies should take to ensure compliance include:

• Audit consumer-facing materials: Review all marketing materials, product packaging, advertising, webpages, social media and promotional content for environmental and sustainability-related claims.
• Build evidence files: Maintain a robust evidence file for each environmental claim, containing underlying data, methodology and any third-party assurance.
• Substantiate or replace generic claims: Assess whether any generic environmental claims can be backed by recognised excellent environmental performance, and replace unsubstantiated claims with specific, verifiable statements.
• Stress-test forward-looking commitments: Ensure any forward-looking claims are supported by a detailed and realistic implementation plan that is independently verified.
• Remove offsetting-based neutrality claims: Remove any product-level claims of climate neutrality or carbon neutrality that rely on the offsetting of greenhouse gas emissions outside the product's value chain.
• Check sustainability labels: Verify that any sustainability labels, ESG certifications or quality marks displayed in marketing materials are based on qualifying certification schemes meeting the EmpCo Directive's criteria.
• Review distribution and third-party channels: Ensure that distributors, agents and platforms do not make unauthorised sustainability claims about your products or services.
• Map regulatory overlaps: For example, financial services firms should consider the interaction between the EmpCo Directive and existing SFDR, Taxonomy Regulation and MiFID II suitability and product governance requirements.
• Monitor national transposition: Track national transposition timelines and any divergences in implementation across relevant jurisdictions. Treating compliance as an ongoing exercise rather than a one-off project will help companies respond to regulatory developments and maintain defensible claims over time.
• Address existing products and "old stock": The new rules apply to products or packaging already manufactured, distributed or placed on shelves before 27 September 2026. There is no transition period. Where environmental claims or sustainability labels on existing packaging do not comply, traders have practical options such as covering or correcting claims with stickers, or adding supplementary information at the point of sale. The national authorities of the Consumer Protection Cooperation Network have developed a Common Understanding on how to handle such situations to ensure a smooth transition.
• Establish governance arrangements: Set up clear internal approval workflows for new claims, with sign-off from legal, compliance, sustainability and marketing functions before any consumer-facing communication is published. Engage suppliers to secure primary data, certifications and traceability needed to substantiate claims, and consider updating supplier contracts to include representations, audit rights and indemnities relating to environmental information.

Authors: Gabriele Accardo, Partner; Sergej Bräuer, Partner; Christopher Eberhardt, Partner; Giulia Carnazza, Counsel; Isabella Hunt, Associate; Dimitra Karakioulaki, Associate and Sarah Schaible, Transaction Lawyer.