The End of Vague Sustainability Marketing: Get Ready for the New Anti-Greenwashing Law.
The EmpCo Directive stands for Empowering Consumers for the Green Transition (EU Directive 2024/825). It is a new European law that protects consumers and mandates transparency in sustainability marketing. The law was officially adopted in early 2024, and the transition period ends on September 27, 2026. As of that date, enforcement will be fully in effect in all EU member states.
Which sustainability terms will you no longer be allowed to use?
Terms such as “eco,” “green,” “sustainable,” or “climate-friendly” are prohibited unless a company can precisely demonstrate, using a recognized method (such as a life cycle assessment), that the entire product possesses that characteristic. The same applies to claims such as “CO₂-neutral flying” or “climate-neutral delivery.” These will no longer be permitted if the claim is based solely on offsetting emissions by planting trees. Companies must reduce their own emissions; offsetting may only be mentioned as additional background information, not as a sustainability label.
What will you need to disclose about your product’s reparability?
Companies must provide honest information about a product’s repairability and how long software updates are guaranteed. This is where the EmpCo Directive and the Right to Repair Directive converge: the Right to Repair legislation gives consumers the right to have products repaired that are technically repairable (such as washing machines, smartphones, laptops, and vacuum cleaners). The EmpCo Directive then ensures that, starting September 27, 2026, this information is communicated clearly and honestly in all marketing communications directed at consumers.
What is the connection between greenwashing and the EmpCo Directive?
Greenwashing is when companies give the impression that they operate more sustainably than they actually do. And this may be even more common than you might initially think. 58% of companies engage in greenwashing. The EmpCo Directive reduces this percentage by requiring companies to substantiate their sustainability claims precisely, for example, through a life-cycle analysis.
And that’s important. Imagine: you’re a reseller and you’re adding a product to your lineup. The manufacturer claims it’s a sustainable choice, and you sell it to your customers with that same message. If it later turns out that those claims were exaggerated or misleading, it could damage your reputation and credibility.
In addition, greenwashing can lead to companies that are genuinely committed to sustainability being unfairly called into question. Their efforts are taken less seriously because trust has been damaged by previous deception.
Why does the EmpCo Directive focus solely on consumers (B2C)?
The EmpCo Directive is officially a piece of consumer legislation. The European Union drafted this law as a direct amendment to theexisting Unfair Commercial Practices Directive. What are the reasons behind the EU’s decision to focus on consumers? A consumer at the supermarket doesn’t have time to check whether packaging is truly biodegradable. There is a knowledge gap. The EU wants to protect individual citizens from misleading marketing claims.
In the Business-to-Business (B2B) world, the situation is different. Business buyers conduct extensive background research on a product before making a purchase, with official certificates and concrete product specifications being the standard. In addition, the CSRD (Corporate Sustainability Reporting Directive) plays a major role. This directive requires larger companies to report transparently on their impact on people, the environment, and society, resulting in much greater openness regarding sustainability in the business market.
Although the EmpCo directive formally targets only consumers, B2B companies will feel the impact. If a consumer brand (B2C) wants to state on its products starting September 27 that the ingredients are “100% climate-neutral,” it must be able to prove it. This brand will immediately request this evidence and data from its B2B suppliers in order to make those claims. If you’re a B2B company supplying raw materials, packaging, or semi-finished products and cannot provide concrete sustainability data, this will have consequences: consumer brands will immediately prioritize B2B suppliers who can provide such proof.
What happens if companies fail to comply with the EmpCo Directive as of September 27, 2026?
If companies fail to comply with the EmpCo Directive as of September 27, 2026, they risk a fine. A base fine can amount to up to €900,000 per violation. In the case of major or systemic violations, the EU requires member states to impose fines of at least 4% of the company’s annual revenue in that country. If revenue figures are not available, the fine can amount to at least 2 million euros.
How does the EmpCo Directive contribute to the circular economy?
The goal of a circular economy is to stop throwing away products and raw materials and instead reuse and repair them as much as possible. The EmpCo Directive contributes to this by providing consumers with the right information to make informed, circular choices. In a circular economy, repair is the norm. From now on, companies are required to provide honest information prior to purchase regarding the availability of replacement parts, the existence of repair manuals, and any associated costs.
In addition, the law promotes the circular economy at the back end of the supply chain. Companies that collaborate with major consumer brands (B2B) and cannot substantiate their sustainability claims with data will immediately feel the consequences; after all , starting September 27, 2026 , consumer brands will no longer be allowed to simply print those claims on their packaging. They will therefore actively seek out reliable suppliers who do meet all requirements and can provide the correct environmental data. The EmpCo Directive thus compels the entire supply chain to adopt circular practices.
How do you demonstrate that your sustainability claims are truly accurate?
The life cycle assessment (LCA) was briefly discussed earlier in this article. But how does an LCA specifically help your organization comply with the EmpCo directive? A life cycle assessment supports your sustainability claims with scientific data. In addition, it provides immediate insight into which effective measures you can take to reduce your product’s environmental impact. An LCA maps out the entire supply chain: from the extraction of raw materials to final waste disposal.
Want to learn more about life cycle assessment?
Discover how it can help your organisation stay compliant from 27 September onwards
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