EmpCo Directive: sustainability claims under scrutiny
New rules on sustainability claims and labels aimed at consumers have been in force since 27 September 2026. The Empowering Consumers (EmpCo) Directive (EU) 2024/825 aims to curb greenwashing and imposes stricter requirements on consumer claims. The Directive also covers the reparability, lifespan and software updates of certain products. This alert focuses primarily on sustainability claims.
In practice, many businesses will need to critically reassess their sustainability claims – particularly environmental claims on packaging, online and in marketing communications – or have them reassessed, insofar as this has not already been done by 27 September 2026. The Directive supplements the existing ban on misleading commercial practices with specific prohibitions and information requirements.
Below, we set out the most important new rules.
Generic environmental claims and new prohibitions
The EmpCo Directive prohibits the use of generic environmental claims. These are environmental claims without a sufficiently clear specification directly accompanying the claim (on the same medium). Examples include the use of words such as ‘green’, ‘environmentally friendly’ or ‘climate-friendly’, without further substantiation as to why the product or service deserves that qualification. The only exception to this ban applies if the company can demonstrate that it has ‘recognised outstanding environmental performance’ relevant to the claim, such as the EU Ecolabel or an officially recognised EN ISO 14024 Type I environmental label. Irrespective of this, every environmental claim must, of course, be substantiated.
A claim is not generic if the specification is provided in clear and prominent terms on the same medium, for example on the same packaging, in the same advertisement or on the same online sales interface.
In addition, the following prohibitions, amongst others, have been added to the blacklist. For instance, it is prohibited to make an environmental claim about the product as a whole or about all of the company’s business activities, whilst the claim relates only to a specific aspect thereof. It is also prohibited to present legal requirements that apply to all products within a product category on the EU market as a distinguishing feature of the company’s offering.
Offsetting claims
Environmental claims based on the offsetting of greenhouse gas emissions (carbon offsetting) must not suggest a neutral, reduced or positive climate impact. A product may therefore not be described as ‘climate-neutral’ or ‘CO₂-neutral’ simply because greenhouse gas emissions are offset, for example, by planting trees on another continent. These terms are only permitted if they refer to the actual life-cycle impact of the specific product, not to the offsetting of greenhouse gases outside the product’s value chain.
However, this does not mean that companies are not allowed to advertise their environmental initiatives; rather, it means that consumers must not be misled about the actual impact of a product on offer.
Sustainability targets
Claims about future environmental performance, such as ‘we will be carbon neutral by 2030’, are risky under the EmpCo guidelines. Such claims are only permitted if they are backed up by a concrete, realistic and verifiable implementation plan with measurable and time-bound targets that are regularly audited by an independent external expert. Furthermore, the findings of that independent expert must be made available to consumers.
It is therefore possible to state an ambition, but without an underlying plan, it is a risky claim.
Sustainability labels
Sustainability labels that are not based on a certification scheme or issued by public authorities are prohibited under the EmpCo Directive. This means that businesses selling products bearing sustainability labels must carefully check whether these labels meet the requirements of the certification scheme or have been issued by the government.
Sanctions and enforcement
The rules do not only affect individual consumers. Other businesses, such as competitors, and interest groups may also invoke them. Small businesses, such as the self-employed, may also be able to do so, which means that B2B advertising may fall within the scope of application (the so-called ‘reflex effect’).
Penalties are determined on a country-by-country basis, as the EmpCo Directive had to be transposed into national law. In the Netherlands, in addition to the courts, the Netherlands Authority for Consumers and Markets (ACM) can also impose heavy fines for breaches of these rules, of up to EUR 900,000 or 10 per cent of annual turnover. The Advertising Code Committee (RCC) may also rule on sustainability claims, but cannot impose fines. A negative RCC decision therefore mainly results in negative publicity.
A recent example of enforcement involves the cruise operator Captain Cruise. Following action by the ACM, on 13 August 2026 – in anticipation of the EmpCo Directive – the company amended unsubstantiated sustainability claims relating to travel on its website. These contained misleading text and images, including the headline ‘sustainable cruising’.
Existing stock
Stock and packaging produced or placed on the market before 27 September 2026 are not generally exempt. However, in June 2026, the European consumer authorities, united within the CPC network, published a non-binding joint position on existing stock, to which the ACM also refers. According to this position, regulators may enforce the rules in phases where there are genuine and specific transitional difficulties, provided the company can demonstrate that it has made every reasonable and proportionate effort to comply with the EmpCo Directive. Possible measures include removing claims from websites, affixing stickers or posting additional information on the website to rectify a claim. Less leniency applies to online claims, as these can easily be amended. The precise scope for businesses is as yet unknown.
Conclusion
Although a number of these principles already followed (indirectly) from the prohibition on misleading commercial practices, the EmpCo Directive introduces explicit prohibitions and information requirements regarding the use of sustainability claims. Businesses that make sustainability claims – and specifically environmental claims – must be aware of this.
For most companies, the EmpCo Directive raises specific questions: which claims on packaging, websites, social media and in adverts stand up to scrutiny? Does the quality mark we use meet the new certification requirements? Is our CO₂ ambition sufficiently substantiated to be used as a claim?
These questions call for swift action: making adjustments often takes longer than expected, and missteps can entail significant financial and reputational risks.
Do your sustainability claims comply with the new rules?
The EmpCo guideline calls for a critical review of your sustainability communications. Are your environmental claims sufficiently substantiated? Do your quality marks meet the new requirements? And what changes are needed to your packaging, website or advertising?
Avoid unnecessary legal and reputational risks. We’d be happy to help you assess your sustainability claims, identify potential risks and determine what changes are needed. Would you like to know what the new rules mean in practical terms for your organisation? Please contact Maurits or Lex.
