CSRD vs. EmpCo: What You Need to Know in 2026

Two EU Regulations, Two Worlds

CSRD (Corporate Sustainability Reporting Directive) Scope: Large companies (>250 employees, >€50 million turnover, >€25 million balance sheet) Effective Date: Phased implementation 2024-2028 Content: Mandatory sustainability reporting according to ESRS standards (12 thematic standards) Sanctions: Fines up to €10 million (BaFin) Target Audience: Investors, stakeholders

EmpCo (Empowering Consumers) Scope: ALL companies regardless of size Effective Date: 27 September 2026 Content: Prohibitions of misleading environmental claims in consumer communication Sanctions: Regular consequence per case is a warning/cease-and-desist and, where applicable, damages; the statutory maximum under § 19 UWG is a fine up to €50,000, or — where turnover exceeds €1.25 million and only in EU-coordinated CPC enforcement (Art. 21 Reg. 2017/2394) — up to 4 % of the turnover achieved in the affected EU member state Target Audience: Consumers

Key Differences

| | CSRD | EmpCo | |---|---|---| | Who is affected? | Large companies | ALL | | When? | Reporting year 2024+ | Advertising from 27 September 2026 | | What? | Standardised report | Advertising statements | | Who monitors? | BaFin, auditors | Consumer associations, DUH, competitors | | Goal? | Transparency for investors | Protection against misleading information |

Strategic Implications

For CSRD-obligated Companies CSRD data provides the optimal basis for EmpCo-compliant advertising. Companies correctly reporting ESRS E1 (Climate Change) will have the necessary figures for claims such as “CO₂ reduction since 2019: -47 %”.

For SMEs (CSRD-exempt, but EmpCo-obligated) SMEs do not have to prepare CSRD reports, but: Anyone advertising with environmental claims must also substantiate them without CSRD. A pragmatic approach: recognised certifications instead of your own data.

Roadmap 2026-2028 - 2026: Implement EmpCo advertising prohibitions (all) - 2027: First DUH/Wettbewerbszentrale (German Centre for Protection against Unfair Competition) lawsuits (all) - 2028: CSRD reporting obligation for the next wave (medium-sized) - 2029+: Green Claims Directive (substantiation)