Green claims: checklist for avoiding greenwashing
The EmpCo rules have applied under the German UWG since 27 September 2026. Which green claims are allowed, which are banned, and what became of the GCD.
- The decisive legal framework for green claims today is the EmpCo Directive (EU) 2024/825: in Germany it has applied through the amended UWG (Federal Law Gazette 2026 I No. 43) since 27 September 2026.
- 53% of green claims are potentially misleading and 40% lack any verifiable evidence, according to EU research. Only specific, accurate and substantiated claims are allowed.
- Banned per se are, among others, generic environmental claims without recognised excellent environmental performance, neutrality claims for products based on offsetting, and self-created labels without a certification scheme.
- The Green Claims Directive has not been adopted: the European Commission announced its withdrawal in June 2025, and the procedure is blocked. Ex-ante verification, the micro-enterprise exemption and maximum fines of at least 4% of turnover were only proposed.
- A structured checklist helps you review your environmental claims before they become a legal risk.
Environmental claims, known as green claims, are under increased scrutiny. For a long time, the European Commission's Green Claims Directive (GCD) was seen as the key future rulebook against greenwashing. What actually applies today, however, is the EmpCo Directive: in Germany it has applied through the Act Against Unfair Competition (UWG) since 27 September 2026. Both initiatives are part of the EU Green Deal, which also includes the Corporate Sustainability Reporting Directive (CSRD) and the EU taxonomy.
Sustainability has become a decisive criterion for consumers. Companies are faced with the challenge of making their environmental claims sound and verifiable. This article shows you which green claims are allowed, which are banned, what became of the Green Claims Directive, and how to review your environmental claims in a structured way.
The Green Claims Directive has not been adopted. On 20 June 2025, the European Commission announced its intention to withdraw the proposal. Formally it is still pending, but the procedure is blocked. This has nothing to do with the Omnibus package. What applies instead are the rules of the EmpCo Directive, implemented in Germany by the Third Act Amending the UWG and in force since 27 September 2026. To review your own claims, it is worth looking at our overview of EmpCo tools.
Green claims and the legal framework
What are green claims?
Green claims are environmental statements made by companies indicating the environmental friendliness of their products, services or business practices. These claims are now ubiquitous, from "climate-neutral products" to "environmentally friendly packaging". But how reliable are they really?
According to a study conducted by the EU, 53% of environmental claims are potentially misleading and 40% of claims are not based on any verifiable evidence. This is where the EU rules come in: the EmpCo Directive expressly prohibits certain claims, while the Green Claims Directive would additionally have set out in detail how environmental claims must be substantiated and verified.
Why rules against greenwashing are necessary
It is often difficult for consumers to distinguish credible environmental claims from unfounded ones. The rules aim to stop greenwashing, where companies make unsubstantiated or false environmental claims to appear environmentally friendly. Consumers should be able to access reliable information so they can make informed decisions.
This protects both consumers and companies that are making honest claims.
What has applied under the UWG since 27 September 2026
With the transposition of the EmpCo Directive, the blacklist in the annex to the UWG contains new prohibitions that apply without a case-by-case assessment:
- Generic environmental claims such as "environmentally friendly" or "green" without recognised excellent environmental performance (Annex No. 4a UWG).
- Claims about the whole product or company that only concern a part of it (Annex No. 4b UWG).
- Neutrality claims based on offsetting, such as "climate-neutral" or "CO₂-reduced" through purchased credits. They are banned per se, regardless of how transparently the offsetting is explained (Annex No. 4c UWG).
- Sustainability labels that are neither based on a certification scheme nor established by public authorities (Annex No. 2a UWG).
- Presenting legal requirements as a distinctive feature (Annex No. 10a UWG).
Claims about future environmental performance such as "climate-neutral by 2035" are only permitted if there is a detailed, realistic implementation plan that is regularly verified by an independent expert (Section 5(3) UWG). There is no statutory transition period. For old stock such as already printed packaging, the European Commission and consumer protection authorities apply proportionate enforcement; online claims must be adjusted immediately.
Which environmental statements are permitted?
Environmental claims are permitted if they are specific, accurate and substantiated and clearly relate to the part of the product or activity to which they apply. Document the evidence before the claim is published.
Permitted claims
- "This product is made from 100% recycled plastic" - allowed if the claim applies to the whole product and the company can prove the material is genuinely recycled, for example through supplier evidence or a certification.
- "The transport emissions of our supply chain have fallen by 30% since 2021 thanks to switching to rail" - allowed if the reduction is based on actually measured or calculated emissions, the base year and scope are clearly stated, and the calculation is documented. Offsetting plays no role in this claim.
Prohibited claims
- "Environmentally friendly" - a generic environmental claim; prohibited without recognised excellent environmental performance (e.g. the EU Ecolabel).
- "Climate-neutral thanks to CO2 compensation" or "CO2-neutral supply chain through climate projects" - banned per se since 27 September 2026, even if the offsetting is documented transparently and in detail. You may only communicate offsetting as a separate climate contribution, without attributing a neutral, reduced or positive climate impact to the product.
- A self-created "eco" label without a certification scheme with independent monitoring - prohibited.
The Green Claims Checklist
We have created a checklist that companies can use to review their environmental claims systematically.
We created this checklist in 2024 based on the proposal for the Green Claims Directive. The checkpoints on evidence, life-cycle perspective and the relevant part of the product remain useful. Important: neutrality claims based on offsetting have been banned per se since 27 September 2026, even with transparent reporting on the offsetting. There is no general legal requirement for third-party verification; the UWG does, however, require independent checks for future-performance claims and sustainability labels.
What this means for companies
The new rules mean greater responsibility and transparency in how you communicate environmental statements.
Five steps to compliant green claims
- Build up in-house expertise on the EmpCo rules in the UWG
- Collect and review all existing advertising for environmental statements
- Check each environmental statement against the regulatory requirements
- Adapt any non-compliant claims, online claims immediately
- Develop internal rules and approval processes for future claims
Companies must ensure that claims are accurate, substantiated and do not conceal significant environmental impacts of the product or service. The proposal for the Green Claims Directive also provided for environmental claims to be verified in advance by an independent body and reviewed at least every five years. As the directive has not been adopted, this obligation does not apply.
Be careful with earlier best-practice examples
Many examples that were considered exemplary before 2026 no longer meet the new rules. This applies in particular to claims such as "climate-neutral" or "environmentally neutral" that are explained on the back of the packaging with a reference to offsetting: even with a transparent explanation, they have been banned per se since 27 September 2026.
Already reporting under the CSRD? Our ESRS data points template helps you structure and document the sustainability data that can serve as evidence for your environmental claims.
The link to the CSRD
While the EmpCo rules focus on specific environmental claims made to consumers, the CSRD requires holistic sustainability reporting. Following Omnibus I, only companies with more than 1,000 employees and more than €450 million in net turnover are subject to reporting, starting with financial year 2027. The European Sustainability Reporting Standards (ESRS) centre on double materiality, which considers both the impact of a company on the environment and society (inside-out) and the impact of environmental factors on the company (outside-in).
Sustainability reporting collects and makes transparent large volumes of data, much of which can serve as evidence for the environmental statements you make. According to the European Commission's FAQ, the CSRD report itself generally does not fall under EmpCo, but consumer advertising that reuses its content does.
Conclusion: a must for responsible companies
With the EmpCo rules in the UWG, the framework against greenwashing has been binding since 27 September 2026, even without a Green Claims Directive. Companies must ensure that their environmental claims are specific, accurate and substantiated and can withstand scrutiny.
For companies that take sustainability seriously, the rules are also an opportunity to differentiate from competitors and build trust with customers.
Reviewing and adjusting your claims now means fewer legal risks and a stronger market position.
Frequently asked questions about green claims and greenwashing
What is the Green Claims Directive and does it apply?
The Green Claims Directive is a proposal by the European Commission from 2023. It provided for companies to substantiate their environmental claims scientifically and have them verified in advance by independent bodies. The directive has not been adopted: the Commission announced its withdrawal on 20 June 2025; formally the proposal is still pending, but the procedure is blocked. What applies instead are the EmpCo rules in the UWG.
Which companies are affected by the new rules?
Since 27 September 2026, the EmpCo rules in the UWG have applied to all companies that advertise to consumers with environmental claims, regardless of their size. An exemption for micro-enterprises (fewer than 10 employees and no more than €2 million turnover) was only included in the proposal for the Green Claims Directive. In purely B2B communication, the new blacklist does not apply directly, but the general prohibition of misleading practices under the UWG still does.
Do I have to have my green claims verified in advance?
There is no general obligation to have claims verified in advance; this was only foreseen in the GCD proposal, with costs estimated at around €500 to €8,000 depending on the type of claim and the number of products. For claims about future environmental performance, however, the UWG requires regular verification by an independent expert.
What penalties apply if companies do not comply?
Under the UWG, the main consequences are warning letters as well as injunctive relief and damage claims. The GCD proposal provided for fines with a maximum of at least 4% of annual turnover; as the directive has not been adopted, these do not apply. The reputational damage from a public greenwashing finding can be substantial beyond any financial consequences.
How do green claims relate to CSRD reporting?
The two are complementary. The CSRD requires companies in scope to report holistic ESG data under the ESRS. That same data, especially environmental performance figures, can substantiate the green claims you make. The CSRD report itself generally does not fall under EmpCo; if you reuse its content in consumer advertising, however, the EmpCo rules apply to those claims.
