BDO: New EU Regulations Tighten Requirements for Environmental Marketing Claims
The new EU Empowering Consumers (EmpCo) Directive and German "Law Against Unfair Competition" (UWG) reform introduce stricter rules for companies' environmental marketing claims, effective September 2026.
New European Union regulations are set to significantly impact how companies communicate their environmental credentials to consumers. The Empowering Consumers (EmpCo) Directive (EU/2024/825), alongside Germany's reform of its "Law Against Unfair Competition" (UWG), introduces stricter demands on environmental and sustainability claims, with mandatory application from September 27, 2026.
The EmpCo directive replaces previous legislation on unfair commercial practices, establishing uniform, EU-wide definitions for environmental claims, sustainability labels, and "recognised excellent environmental performance." Germany's implementation through the UWG reform adds specific prohibited practices for misleading environmental advertising to its existing "black list."
A core requirement is the need for substantiation. General environmental claims such as "climate neutral," "sustainable," or "eco-friendly" will be prohibited unless supported by recognised excellent environmental performance, evidenced by certifications like the EU Ecolabel or ISO 14024. Claims of product climate neutrality based solely on carbon offsetting will be banned. Furthermore, self-developed sustainability labels lacking official recognition or independent third-party verification will be disallowed.
These rules apply to all companies marketing products or services to EU consumers and making related environmental or sustainability statements. Companies must review their advertising, packaging, and online content for compliance before the September 27 deadline. Non-compliance can lead to civil lawsuits and, for cross-border violations, fines of up to 4% of annual turnover.
BDO advises companies to immediately conduct a comprehensive inventory of all environmental and sustainability-related claims across all communication channels. This should include a legal classification of each claim, gathering supporting evidence, rectifying any deficiencies, and securing compliance for future labelling and pledges. Claims about future environmental performance will require detailed, publicly accessible, and verified implementation plans.