EmpCo Directive: Everything You Need to Know Now

Sustainability promises in communication and advertising are facing a transformation. With the Empowering Consumers for the Green Transition (EmpCo) Directive, the EU is drawing a sharp sword against greenwashing. The EmpCo Directive has been in force across the EU since March 2024 and must be transposed into national law by 2026. Small and medium-sized enterprises (SMEs) in particular should not underestimate the scope of these new rules. The EmpCo aims to empower consumers by prohibiting misleading environmental and sustainability claims and promoting informed purchasing decisions. In the future, companies may only make "green" promises if they are clear, comprehensible, and verifiable.

We show what specific requirements the EmpCo Directive entails, how it differs from the Act Against Unfair Competition (UWG) and the planned Green Claims Directive, which typical errors in sustainability communication are now becoming dangerous, and how SMEs can now prepare their communication for the new rules.

EmpCo at a glance

What companies should do now

1. Purpose: Empowering Consumers and Stopping Greenwashing

The official name of the EmpCo Directive ("Directive on Empowering Consumers for the Green Transition") already reveals its goal: consumers are to be empowered to make more sustainable purchasing decisions and protected from misleading environmental advertising. The EmpCo is part of the EU Green Deal and responds to a market flooded with vague and hardly verifiable sustainability claims as well as homemade eco-labels. New transparency and information obligations aim to build trust, and practices that hinder sustainable consumption are to be stopped.

In short: The EU wants to make real ecological progress visible and consistently penalize corporate greenwashing as well as social washing. For companies, this initially means more regulation on top of CSRD, ESRS, CSDDD and others. In the long term it also means fairer competitive conditions and more credibility in sustainability communication.

2. Strict Requirements for Green Claims: What the EmpCo Directive Regulates

The EmpCo Directive introduces specific prohibitions and obligations for environmental advertising claims that go beyond existing unfair competition law. These regulatory requirements will be implemented in Germany primarily through amendments to the Act Against Unfair Competition (UWG). Here is an overview of the most important new rules.

2.1 Prohibition of Vague Environmental Terms

General keywords such as "eco-friendly", "environmentally sound", "green", "ecological", "climate-friendly", "environmentally compatible", "CO₂-neutral", or "biodegradable" may no longer be used without comment from the entry into force of EmpCo. Such blanket claims are only permissible if either a recognized excellent environmental performance exists or the statement is clearly and explicitly specified (e.g., directly on the product packaging).

Example: A mere "sustainable" on packaging will be prohibited unless it can be proven that the product is exceptionally environmentally friendly. Not every green phrase is automatically prohibited, but it is only allowed if its substantive content is immediately recognizable to consumers and scientifically substantiated.

2.2 Obligation to Substantiate Environmental Claims

In the future, sustainability claims must be supported by robust evidence. Companies need hard data, facts, and, if applicable, certificates to substantiate their green claims. The EmpCo Directive mandates a uniform definition of terms: an "environmental claim" is any voluntary statement in communication, whether text, image, label, brand, or company name, that expresses or implies that a product, brand, or the company as a whole has positive or reduced environmental impacts. Such statements must not be misleading. The essential characteristics of a product now also include everything relevant to sustainability, from composition to ecological or social characteristics to circularity aspects such as durability, reparability, or recyclability.

Anyone advertising with green promises must be able to substantiate them completely and truthfully, otherwise there is a risk of misleading consumers under the UWG.

2.3 "Cherry-Picking" is Prohibited

It is expressly prohibited to make an environmental claim about a product or the entire company if it actually applies only to a partial aspect. This practice highlights individual positive environmental attributes while ignoring the rest.

Example: A manufacturer heavily advertises their item as "made with recycled material," even though only the packaging actually consists of recycled material. This will be impermissible in the future. Companies may not deceive consumers with clever partial truths about a product's overall environmental profile.

2.4 No Own Eco-Labels Without Genuine Certification

The flood of colorful environmental and sustainability labels will be curbed. Self-created labels by a company will be prohibited in the future, unless an independent certification system stands behind them. Self-created labels are only permissible if they are based on a certification system with independent monitoring. Without such a system or without state regulation, their application is per se impermissible. SMEs should therefore review their label strategy: self-praise labels must either be replaced by genuine certifications or abolished.

2.5 No Climate Neutrality Claims Through Offsetting

This prohibition forces companies to focus more on actual emission avoidance and reduction, rather than relying solely on offsetting measures.

2.6 Stricter Requirements for Future-Oriented Claims

Future-related environmental claims such as "climate-neutral by 2030" or "100% plastic-free by 2025" are considered misleading according to the new UWG draft, if made without a clear, objective, and verifiable implementation plan. Companies communicating climate-related goals or similar future promises must in the future disclose a detailed roadmap with measurable interim targets, which is regularly audited by independent experts. Otherwise, such announcements are impermissible. This change aims to prevent empty PR promises and ensure that statements about future sustainability performance are genuine and verifiable.

2.7 Transparency in Durability and Reparability

The EmpCo Directive also extends consumer protection to product information on longevity. In the future, companies may only make durability claims (e.g., "lasts 20 years") if these are truly realistic and verifiable under normal conditions of use.

The same applies to reparability claims: advertising a product as "repair-friendly" is prohibited if it falls short in reality, for example because spare parts are not available or special tools would be required. Manufacturers must also proactively indicate how long updates (e.g., for software) will be offered and what repair options products provide. This information should be clearly visible, e.g., on packaging.

2.8 No Artificial Shortening of Service Life

It will be prohibited to urge consumers to replace consumables unnecessarily early. Well-known cases where printers demand ink cartridge replacement very early, even though ink is still present, will be considered an unfair practice in the future. Such tricks contradict the idea of sustainability and will be prohibited. Companies must therefore check their products and instructions to see if they encourage wasteful replacement anywhere.

2.9 Irrelevant Benefits and "Obvious Facts"

Some "green" statements sound good but do not provide real added value or merely describe what is already legally required. Precisely this will be considered unfair in the future. Typical examples include "X-free" claims when X is already prohibited, or highlighting minimum standards as a special feature. Common examples: "CFC-free" for sprays/aerosols (forbidden for years) or "cruelty-free" for cosmetics in the EU (not allowed anyway).

What this means in practice

The EmpCo Directive and its implementation in the UWG compel companies to examine every green advertising promise for honesty and relevance. Anyone who continues to advertise with vague eco-messages or self-invented labels risks warnings, fines, and a massive loss of customer trust from 2026 onwards.

Sustainable advertising remains possible, provided it is transparent, specific, and truthful. Companies can and should continue to highlight environmental benefits, but without greenwashing, and instead with verifiable facts.

3. EmpCo Directive vs. UWG vs. Green Claims Directive: How Do the Laws Interact?

Many companies are wondering how the EmpCo Directive fits into the existing regulatory framework, especially in relation to the German Act Against Unfair Competition (UWG) and the separately planned Green Claims Directive (GCD) of the EU.

In short: EmpCo and UWG merge, and the Green Claims Directive completes the picture if it comes.

3.1 UWG and EmpCo

Even under the current UWG, environmental advertising claims are impermissible if they are misleading or withhold essential information. Until now, lawsuits against greenwashing were mostly based on the UWG. For example, the Federal Court of Justice has ruled that the term "climate-neutral" as a product characteristic must be explained concretely and unambiguously so as not to mislead.

The EmpCo Directive now explicitly specifies these general principles of fair competition for sustainability claims. It will be transposed into German law by March 2026 through amendments to the UWG. The federal government's draft bill has been presented since early September 2025. In practice, the UWG will in the future contain defined terms (e.g., "environmental claim," "general environmental claim," "sustainability label") and an expanded black list of unfair commercial practices, in which the prohibitions described above are enshrined.

EmpCo and UWG work hand in hand: the UWG already provides the framework, and the EmpCo rules specifically tailor this framework to sustainability communication.

3.2 EmpCo vs. Green Claims Directive

At first glance, the EmpCo Directive and the planned Green Claims Directive are similar: both aim for more reliable environmental information and less greenwashing. The decisive difference lies in the approach. The EmpCo Directive focuses on prohibitions and general information obligations, while the Green Claims Directive (GCD) specifically provides detailed requirements for voluntary environmental claims.

The EmpCo Directive has already been adopted and must be transposed into national law by 27 March 2026, becoming binding from September 2026. The GCD, however, is still in the legislative process as of 2025 and could even be completely scrapped.

EmpCo prohibits vague terms, self-made labels, and compensation claims and extends the UWG with corresponding clauses. It also obliges companies to provide certain sustainability information easily accessible in advertising (e.g., durability statements on the product). The GCD, on the other hand, would have primarily introduced that every voluntary environmental claim must be preceded by a standardized pre-assessment by independent bodies, including life cycle analyses and a uniform verification methodology.

EmpCo sets the broad framework (what may no longer be said and what information must be disclosed), while the GCD was intended to delve deep into the how of substantiation.

3.3 Complementary Rather Than Redundant

The EmpCo Directive and the GCD pursue the same goal through different paths. If the GCD were to come as planned, it would complement the EmpCo by establishing an EU-wide uniform verification system for the specific green claims that are still permitted. Should the GCD fail or be delayed, the EmpCo alone will remain decisive.

Regardless of the GCD, companies must adapt to the EmpCo. Even without mandatory pre-certification from 2026 onwards: no more vague or misleading claims, but sound data, transparent criteria, and, if in doubt, external confirmations. Anyone who relies on continuing with soft eco-phrases risks legal consequences, even if the Green Claims Directive never comes. The EmpCo alone already ensures that greenwashing can become expensive in the future. Companies will need robust evidence for their sustainability claims, and preferably sooner rather than later.

4. Examples of Permissible vs. Impermissible Advertising Claims

For a better understanding of which green claims will be allowed in the future and which will not, here are some example pairs.

Every advertisement is individual. In case of doubt, companies should seek expert advice on whether a specific statement complies with the EmpCo. Generally, the more concrete, truthful, and verifiable a sustainability claim, the more likely it is to be permissible.

5. Recommendations for SMEs

For small and medium-sized enterprises, the EmpCo directive may initially seem like another hurdle. With timely preparation, the transition can be mastered. SMEs, in particular, should now address the following steps.

5.1 Inventory of all sustainability statements

Get an overview of wherever your company advertises with environmental or sustainability claims. Check every statement for its permissibility and verifiability. Anything vague or unsubstantiated should be revised or deleted. Scrutinize particularly frequently used keywords ("sustainable" etc.) and proprietary labels. Create a list of all statements and immediately note which evidence is available or missing.

5.2 Collect and Document Evidence

Create an "evidence folder" for each sustainability claim. It should contain everything that supports the statement: studies, technical data, certificates, test results, calculations, etc. The rule going forward is: no green claim without robust evidence. Ensure that these documents are up-to-date, complete, and, if necessary, publicly presentable. Where gaps still exist, decide whether you can specify and conduct follow-up measurements for the statement or if it should be removed. Also plan to involve independent third parties where it is mandatory or sensible.

5.3 Adapt Communication Materials

Start early to update packaging designs, package inserts, and online product pages so that transparent information about lifespan and service can be provided by 2026. Avoid imprints like "durable" without explanation; instead, a "Durability and Warranty" field can be added where specific years or usage cycles are indicated. Similarly for repairs: state whether spare parts are available and for how long. Also check whether old stock with problematic claims is in circulation, and if necessary, plan for transitional stickers or inserts to ensure legal certainty until new packaging material is available.

5.4 Clarify Internal Responsibilities and Processes

Make sustainability communication a top priority for the team. Green claims should no longer arise spontaneously in the marketing department without being checked. Establish an approval process, ideally involving marketing, sustainability officers, and the legal department or external legal experts. Determine who technically reviews new environmental claims and who legally approves them. Train the marketing team on the EmpCo requirements so that only permissible formulations are consciously chosen during content creation. If necessary, set up an internal guideline for green communication that summarizes do's and don'ts. This ensures that everyone in the company speaks the same language, one that both convinces customers and withstands legal scrutiny.

5.5 Reconsider Label and Brand Strategy

Check which sustainability seals or logos are currently being used. Own creations without a certification system with independent monitoring should be immediately abolished or replaced. Look early for recognized alternatives that fit the product and comply with EmpCo. Perhaps it is worthwhile to strive for a certification according to an established standard (e.g., organic seal, Blue Angel, B Corp, CSE, etc.) to continue advertising with a seal, but on a robust basis. Also, brand names and logos with green connotations need to be scrutinized: if the company name or product name has an environmental reference (e.g., "Eco" in the name), you should assess whether this could be considered a general environmental statement. Keep an eye on legal developments: if the Green Claims Directive does come, further tightening may have to be planned.

5.6 Realign Climate Strategy

Use the upcoming ban on offsetting claims as an opportunity to become truly more sustainable. Reduce the CO₂ footprint at the source and communicate concrete emission reduction targets and successes instead of vague neutrality promises. A company that discloses "We have reduced our CO₂ emissions by 40% since 2019" and explains how it achieved this is seen more positively by consumers than one that merely calls itself "neutral" through certificates. While the EmpCo forces more honest communication, it also rewards those who can demonstrate real progress. Start now to collect climate data and implement emission reduction measures. Then, by 2026, the company can tell stories that are both compliant and convincing.

5.7 Don't Wait, Act Now

While the EmpCo will only come legally in 2026, informed customers already expect transparency and honesty today. Those who show early that they voluntarily comply with tomorrow's rules can positively distinguish themselves from the competition.

6. Conclusion: Set the Course Now for Honest Sustainability Advertising

The EmpCo directive will fundamentally change sustainability communication for the better. Greenwashing will be significantly more difficult and sanctioned in the future. At the same time, consumers will receive more reliable information to distinguish truly sustainable offers from merely seemingly sustainable ones. For companies, and especially SMEs, this initially means adjustment efforts. In the long term it also means equal opportunities and trust. Those who report honestly and precisely about their environmental performance do not have to fear the new rules; on the contrary, they will have an advantage over black sheep.

Our recommendation: do not wait until 2026 to clean up all green claims. Use the time to sharpen brand messages, achieve real sustainability progress, and communicate them clearly and with evidence. This way, the company avoids legal risks and possible fines, and strengthens the trust of customers and business partners in the brand. Communicating sustainability is not a minefield if one adheres to a few basic rules: truth, clarity, relevance. The EmpCo directive provides the new regulatory framework for this. Companies must fill it with credible content.

Important Sources

Federal Government's Draft Bill to Amend the Act Against Unfair Competition

EU Proposal for a Directive on Empowering Consumers for the Green Transition

Frequently asked questions about the EmpCo Directive