Source: ESG News, 23 September 2026; original article. This article also summarizes the European Commission's explanation and Directive (EU) 2024/825. It is an industry analysis, not legal advice. For compliance, consult the official EU and Member State legislation applicable to the specific case.
Background: unsupported sustainability claims face tighter rules
Vague environmental slogans, unsubstantiated labels and greenwashing make it harder for consumers to assess products and expose businesses to legal and reputational risk.
The EU Empowering Consumers for the Green Transition Directive (EmpCo, EU 2024/825) amends existing consumer-protection rules. Member States had to transpose it by 27 March 2026, and the measures apply from 27 September 2026. Brands and retailers selling to EU consumers should review the national rules that apply in each market and assess their marketing practices.
EmpCo is also an opportunity to rebuild consumer trust and differentiate products, provided sustainability communications are clear and supported by evidence.
Main restrictions and compliance risks
- Broad environmental claims are restricted. General terms such as “environmentally friendly” or “green” must not be used without the “recognized excellent environmental performance” relevant to the claim under the Directive. General research or a company’s own data do not automatically meet this condition. Broad claims such as “sustainable” may also imply social performance and cannot necessarily be substantiated by a single environmental indicator.
- Product climate claims based on offsetting are prohibited. A trader must not claim that a product has a neutral, reduced or positive greenhouse-gas impact when the claim is based on offsetting emissions. Combining offsets with some real reductions does not automatically remove the restriction. Businesses may still communicate actual reductions or climate investments clearly and in accordance with the applicable rules.
- A limited improvement cannot represent the whole. Claims must be limited to the product feature or activity supported by evidence. An improvement in one stage cannot be presented as the environmental performance of the entire product or company.
- Sustainability labels need a qualifying basis. A label cannot simply be created by the trader; it must be based on a compliant certification scheme or established by a public authority.
Potential consequences
Authorities may require a business to stop or correct marketing, and businesses may face penalties under national law, consumer remedies and reputational harm. The applicable country’s implementing law and the facts determine the fine, calculation basis and remedies. Figures such as “at least EUR 10,000” or a “4% turnover cap” should not be treated as a uniform EmpCo penalty across the EU.
Greenwashing and greenhushing
Some businesses may stop communicating environmental progress altogether to avoid breaching stricter rules. This “greenhushing” can make genuine progress invisible to consumers. Clear, specific communications can continue, but each claim should have suitable evidence and meet the legal conditions for that type of claim.
Technical and data preparation
The following are practical tools to select according to the product and claim. They are not a document list that EmpCo requires every business to produce.
- Supply-chain data quality: Seek supplier primary data relevant to the claim first. Assess the representativeness, scope and limitations of secondary data.
- Lifecycle assessment and product carbon footprint: Where the claim requires it, plan an LCA or product carbon footprint (PCF) using an appropriate method such as ISO 14040/14044, ISO 14067 or the GHG Protocol. Explain the boundary, assumptions and data quality.
- Environmental Product Declaration (EPD): Consider an EPD where the product category and market require or benefit from one. An EPD provides environmental information; it does not prove that a product is better than another, nor does it automatically authorize a broad green claim.
- Traceable evidence: Retain the wording of the claim, data sources, method, version, review records and period of validity for internal review and access by competent authorities.
Time needed for packaging changes, supplier data collection and an LCA depends on product count, data maturity and scope. A business may plan a longer preparation period, such as 12–18 months, but this is not a statutory deadline or a fixed project duration. For existing stock, check the enforcement arrangements in each country and the European Commission's common principles for legacy stock.
Establish a sustainability-claims governance framework
A cross-functional process can connect marketing language with technical evidence. The following modules are recommendations; roles and procedures should fit the organization.
- Diagnostic review: Inventory product pages, in-store displays, packaging, brochures and advertising. Flag high-risk broad wording and product claims based on offsets.
- Data integration: Connect procurement, supplier management and sustainability data. Use original indicators to verify material origin, recycled content and product-emissions data.
- Cross-functional approval: Before publishing an environmental claim, have legal/compliance, sustainability/ESG and marketing/communications review its accuracy, supporting evidence and legal conditions.
- Verified-claims library: Keep approved wording, its scope and supporting evidence in an internal library for marketing use; periodically review and update it.
EmpCo support from Captain International
We support consumer-goods, retail and brand businesses selling into EU business-to-consumer markets. Support can cover claim inventory, data and process development, governance and training to help reduce green-claims compliance risk.
Services
- Gap assessment: Review websites, packaging, advertising and product descriptions; identify higher-risk environmental wording and claims; prepare a gap report and prioritized improvement list against EmpCo.
- Claims-governance procedures: Develop an environmental-claims management procedure, cross-functional approval flow and internal library template; define the responsibilities of marketing, ESG and legal teams.
- Supply-chain data and LCA/PCF/EPD advice: Develop supplier questionnaires and primary Scope 3 data collection; plan an LCA or product-carbon-footprint route; and explain EPD verification and declaration considerations.
- Internal training: Brief senior leaders on EmpCo risk and the business implications of greenwashing and greenhushing; train marketing and brand teams on permitted and prohibited claims; and train ESG, procurement and legal teams on evidence review, approval and common findings.
- Mock review and legal updates: Review claims from an enforcement perspective and monitor Member State transposition and implementing measures for follow-up support.
Who may benefit
- Consumer-goods brands and retailers selling products in the EU, including fashion and textiles, food, home goods and consumer electronics.
- Businesses whose marketing or packaging makes frequent environmental or sustainability claims.
- Organizations developing LCA, product carbon footprints or Environmental Product Declarations.
Contact
Call us or submit an inquiry through the website to arrange an initial discussion with a specialist.