The EmpCo Directive and its implications for sustainability communication

With the EmpCo Directive (“Empowering Consumers for the Green Transition”), the European Union has established a key component of its Green Deal that goes far beyond traditional consumer protection measures. At its core, the directive aims to bridge the growing gap between communicated and actual sustainability in the market. While environmental and ESG issues have gained significant importance in recent years, clear legal guidelines for such claims have often been lacking until now.

This is precisely where the directive comes in: sustainability communication is being systematically regulated for the first time, thereby moving it out of the gray area between marketing and fact. This declares war on greenwashing. In the future, companies will no longer be able to rely on vague or general terms but must ensure that all claims are verifiable, concrete, and robust.

What is the EmpCo Directive?

The EmpCo Directive (“Empowering Consumers for the Green Transition”) is Directive (EU) 2024/825 and was adopted on February 28, 2024. It has been in force since March 2024 and is a central component of the European Green Deal.

It is not a completely new, standalone set of rules. Rather, the directive specifically adapts existing EU regulations to include concrete requirements for sustainability communication. This applies in particular to the following directives:

• Unfair Commercial Practices Directive (UCPD)
• Consumer Rights Directive (CRD)

The goal is to close existing gaps and ensure that environmental and sustainability claims are clearly defined, transparent, and legally verifiable in the future. This is intended to strengthen trust in sustainable products while creating a level playing field.

Also particularly relevant is the connection to the planned Green Claims Directive, which is expected to provide more detailed rules on how sustainability claims must be substantiated in practice. While the EmpCo Directive primarily defines which claims are inadmissible, the Green Claims Directive focuses more on methodological verification and validation. Together, both sets of regulations lead to a significant professionalization of sustainability communication and thus help prevent greenwashing.

From voluntary communication to a legal obligation

The EmpCo Directive, officially adopted as Directive (EU) 2024/825, not only changes individual requirements but shifts the fundamental role of sustainability in the market. Instead of being an optional differentiator, it becomes a regulated component of product and corporate communication. This is not achieved through a completely new set of rules, but through the targeted adaptation of existing regulations, particularly in the area of unfair commercial practices.

A key mechanism here is the expansion of the so-called blacklist. Certain claims will in future be considered fundamentally inadmissible if they cannot be clearly substantiated or justified in a comprehensible manner. The use of sustainability labels without independent certification will also be significantly restricted.

The following, among others, are therefore prohibited:

• General terms such as “environmentally friendly,” “climate-neutral,” “green,” without proof
• Future-oriented statements such as “climate-neutral by 2030,” without an implementation plan
• Statements based on CO₂ offsetting without a transparent basis
• Non-certified sustainability labels

At the same time, the definition of what constitutes an “environmental claim” is being clearly established for the first time: This includes all voluntary statements or representations – whether text, image, label, or symbol – that convey the impression that a product or company has positive or reduced environmental impacts.

The scope of application is thus deliberately broad and encompasses virtually all sustainability communication.

New requirements for evidence and data

Restrictions on claims inevitably go hand in hand with stricter requirements for the evidence supporting them. In the future, companies must be able to substantiate sustainability claims in a structured manner and present them transparently. This applies not only to individual marketing claims but also to the entire data foundation on which these claims are based.

In practice, this means that ESG data must be consistently collected, validated, and documented. Statements regarding climate neutrality or environmental impacts can no longer be communicated with legal certainty without a robust data foundation. At the same time, the requirements for the quality of this evidence are rising significantly: statements must not only be plausible internally but also comprehensible and verifiable externally.

Particularly relevant here is that forward-looking statements are also subject to strict requirements. For example, anyone advertising goals such as “climate-neutral by 2030” must in the future present a concrete, measurable, and publicly accessible implementation plan, including interim targets and external verification.

“Goals without a plan” will thus effectively be inadmissible.

Data and processes as the basis for robust sustainability communication

The requirements of the EmpCo guidelines make it clear that, in the future, sustainability communication will only be as robust as the underlying data and processes. Companies need a consistent data foundation, clearly defined responsibilities, and transparent documentation and approval structures.

In practice, this means in particular:

• ESG data must be centrally collected and consolidated
• Sustainability metrics must be validatable and auditable
• Strategies and objectives must be backed by concrete measures and timelines
• Statements must always be traceable back to their data sources

Without appropriate systems, a gap quickly emerges between operational implementation and external communication.

Digital solutions can play a central role here by capturing ESG data in a structured manner, standardizing processes, and creating the foundation for robust reports and evidence. Platforms like Envoria make it possible to centrally aggregate sustainability data, map out strategies, and set up reporting processes so that statements are consistent, traceable, and verifiable.

Especially in the context of the EmpCo Directive, this makes it clear: The focus is not on individual statements, but on a company’s ability to systematically manage sustainability and present it transparently.

Transparency throughout the entire product lifecycle

In addition to communication itself, the EmpCo Directive also addresses the transparency of product characteristics. In the future, consumers should be better able to understand how sustainable a product actually is – not only in terms of its manufacturing but throughout its entire lifecycle.

This includes, in particular, the obligation to provide information on durability, reparability, and the availability of spare parts. Aspects such as software updates or maintenance options are also coming into sharper focus. At the same time, misleading statements about lifespan or repairability are expressly prohibited.

These requirements aim to promote more sustainable consumer decisions and strengthen business models that prioritize longevity over quick replacement.

Implementation in Germany

Affected companies and scope of the regulation

The scope of the EmpCo Directive is deliberately broad. In principle, it applies to all companies that offer products or services to consumers – regardless of industry or size. What matters is not the structure of the company, but the nature of its communication and its relationship with the end customer.

At the same time, the effects extend beyond the immediate B2C sector. Companies along the entire value chain may be affected, particularly if they provide data for sustainability disclosures or are part of reporting processes. This creates indirect pressure on B2B structures to also improve their data quality and transparency.

Timeline of the EmpCo Directive in Germany

The directive has been in force since 2024 and is being implemented in Germany through amendments to the Unfair Competition Act. The corresponding implementation law was passed in early 2026 and specifies, in particular, the new requirements for environmental claims and sustainability labels.

The regulations are mandatory as of September 27, 2026.

This timeframe may seem sufficient at first glance, but it requires early preparation. Adjusting communication strategies alone is not enough. Rather, data structures, internal processes, and control mechanisms must also be developed accordingly.

Risks of non-compliance and strategic implications

The consequences of violating the EmpCo Directive are severe.

In addition to standard warnings and injunctions, significant financial penalties may apply. This is because, under national implementation, violations of the new requirements can be punished as unfair business practices. In Germany, fines of up to 4% of annual company revenue are possible – particularly in cases of widespread or systematic violations. Additionally, authorities may order the forfeiture of economic benefits obtained through misleading sustainability claims.

At the same time, competitors, consumer protection organizations, and associations can actively pursue violations and issue costly warnings. Particularly in the area of sustainability, it is to be expected that such cases will be specifically addressed.

Added to this is the reputational risk. For many companies, sustainability is a central component of their positioning. If such claims are classified as misleading, this can have immediate effects on trust, brand value, and market position.

Conclusion: Sustainability becomes verifiable

The EmpCo Directive marks a fundamental shift in how sustainability and greenwashing are addressed in the market. Sustainability claims lose their purely communicative nature and become verifiable, data-driven information. Companies thus face the challenge of not only implementing their ESG activities but also providing structured evidence of them.

In the long term, this development leads to greater transparency and comparability, but also to higher demands on data, processes, and systems. Sustainability is thus evolving into an integral part of corporate governance – and no longer merely an aspect of public relations.