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At the end of September, the European EmpCo Directive will come into force. Companies will then be subject to stricter requirements regarding environmental claims made to consumers. Websites, packaging, and other marketing materials may need to be revised, and environmental statements will have to be substantiated with appropriate evidence.
The implementation of the EmpCo Directive (Directive (EU) 2024/825) into Germany’s Act Against Unfair Competition (UWG) introduces significant changes for businesses. As of 27 September 2026, new rules aimed at combating greenwashing and misleading sustainability claims will apply.
Under the EmpCo Directive and its implementation into the UWG, environmental claims directed at consumers will only be permissible under strict conditions. This may also affect content that was created before the new rules take effect.
The legislation defines “environmental claims” very broadly. It covers any statement or representation made in a commercial context that explicitly or implicitly suggests that a product, brand, or company has a positive environmental impact, no environmental impact, or a lower environmental impact than others.
General environmental claims such as “environmentally friendly,” “green,” “ecological,” “climate-friendly,” or “energy-efficient” are prohibited unless they are supported by recognized evidence of outstanding environmental performance and that evidence is directly linked to the claim.
Claims regarding future environmental performance may only be made where they are based on a detailed and realistic implementation plan. Such a plan must include measurable and time-bound objectives, clear and verifiable commitments that are publicly accessible, and regular assessment by an independent external expert.
These requirements create significant compliance risks for businesses. Non-compliance may result in fines of up to 4% of annual turnover. In addition, companies may face legal challenges and cease-and-desist claims under unfair competition law from consumers or competitors.
Businesses should review all marketing and communications materials containing environmental claims and make adjustments where necessary. General environmental statements that are not supported by verifiable evidence of outstanding environmental performance should be avoided.
For forward-looking environmental claims, companies should establish robust implementation plans and ensure independent external verification.
Sustainability labels that are not officially recognized by public authorities may only be used if they are based on a recognized certification scheme. Proprietary company labels generally do not meet this requirement.
In addition, organizations should update their compliance frameworks and provide targeted employee training to ensure adherence to the new rules and reduce liability risks.
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Dr. Christian Engelhardt, LL.M.
Partner
Attorney-at-Law (Rechtsanwalt)
Katharina Engels
Director
German CPA, Sustainability Auditor IDW
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