What is the EmpCo Directive? What does it mean for green claims and sustainability communication?

The EmpCo Guidelines govern the communication of environmental and sustainability claims to consumers. They focus on three areas:
 

1. Environmental and social claims (green claims)
 

• General environmental claims: Non-specific environmental claims (green claims) are prohibited. Examples include terms such as ‘green’, ‘sustainability’ or ‘environmentally conscious’. In future, such claims must be specific, substantiated and verifiable.
• Forward-looking environmental claims: Extensive additional requirements apply to forward-looking environmental claims. Such claims must be based on clear, publicly accessible and verifiable targets, as well as a realistic implementation plan. Furthermore, funding and resources must be allocated to the plan, and progress must be communicated transparently.
• Unclear claims: Misleading green claims are prohibited, e.g. by presenting partial aspects as the overall performance, using standard practice as a unique selling point (e.g. biodegradable surfactants) or using characteristics irrelevant to the product to highlight it in a positive light.  
• Comparisons: Comparisons within product groups are only permissible if the methodology, data basis and assumptions are transparent and objective.

2. Sustainability seals and labels

A sustainability seal is defined as a voluntary public or private seal of approval, quality mark or similar, which aims to highlight a product, process or business activity in terms of its environmental or social characteristics. Seals may only be used if they are awarded by the state or are based on a transparent, audited certification system. Company-owned labels or graphics that give the impression of being a label are not permitted.
 

3. Emissions-based financing for climate protection

The EU clearly emphasises that financing climate protection from companies remains possible and desirable. However, the financing of climate protection projects must be communicated accurately, transparently and in a verifiable manner. To this end, the following requirements must be met

• Implementation and assurance of a verifiable greenhouse gas accounting system.
• All data must be verifiable, traceable and documented in such a way that the provision of corresponding evidence is guaranteed at all times.
• With regard to environmental claims, only accurate facts may be communicated.
• A clear distinction must be made in the communication between corporate accounting and product accounting.
• If an assessment concerns only one aspect of a product, such as packaging, no reference may be made to the product as a whole. The same applies to companies if only a specific division of the company has been assessed.  
• Further information on the calculation method, system boundaries, emission levels and the projects with actual financing must be available (for example via a website).

Neutrality claims such as ‘climate neutral / climate-neutral’, ‘100% offset’ or ‘reduced carbon footprint’ are not permitted if they are based on emissions offsets beyond value chain mitigation. Such statements are only permitted if they are based on the actual impacts on the life cycle of the product in question (for example, in the form of reduction and decarbonisation processes). 

The EmpCo Directive is implemented through national legislation in EU member states. Companies must align their communications with the adapted legal requirements in each relevant market. In Germany and Austria, the adaptations are incorporated into the Unfair Competition Act (UWG). In Switzerland, too, most of the changes have been incorporated into the UWG or are expected to be.  They tighten the rules already in force and require companies to undertake adaptations of their communications, both in the digital and analogue spheres as well as in public appearances and presentations.  

Both sets of guidelines have the same aim: to prevent greenwashing and ensure greater transparency in communication. However, they take a different approach:

The EmpCo Directive primarily regulates how companies may communicate with consumers and prohibits misleading or overly general statements.

The Green Claim Directive goes a step further in terms of content and is intended to specify how such claims must be properly substantiated – in other words, what data, methods and tests underpin them.  

At present, however, the EmpCo Directive is the most relevant, as it has already been adopted and will apply from 2026. The Green Claim Directive is currently on hold politically and is not in force.  

Violations may result in penalties such as fines (with a maximum amount of at least four per cent of annual turnover in the member state concerned), disgorgement of profits, temporary exclusion from public tenders or access to public funds.