EmpCo Directive: SME Guide for Implementation

EU Directive 2024/825 (Empowering Consumers for the Green Transition, EmpCo) tightens the rules for environmental claims in corporate communications from 27 September 2026. For marketing decision-makers in SMEs, this means reviewing and adapting existing marketing materials to minimise legal risks.

Key prohibitions of the EmpCo Directive

The EmpCo Directive distinguishes between per-se prohibitions and misleading information. The per-se prohibitions are particularly critical as they apply without exception.

1. Prohibition of "climate neutral" with offsetting

The use of terms such as "climate neutral", "carbon neutral" or "net zero" is inadmissible if they are based on the compensation of CO₂ emissions through carbon offsetting measures. The Bundesgerichtshof (BGH, German Federal Court of Justice) confirmed in judgment I ZR 98/23 (Katjes, 27 June 2024) that such claims can be misleading without comprehensive and transparent disclosure. Pure compensation without reduction of own emissions is not sufficient.

2. Generic environmental terms without substantiation

General claims such as "sustainable", "environmentally friendly" or "ecological" are prohibited if they are not supported by concrete, measurable and publicly accessible information. It is not sufficient to merely formulate the intention; verifiable facts must be presented. Courts have emphasised under Section 5 UWG and the EmpCo Directive (EU 2024/825) that vague advertising claims without substance are to be classified as misleading.

3. Own sustainability labels

Company-owned seals or labels that have not been certified by an independent and accredited third party are inadmissible. The Directive requires transparent and traceable certification by a neutral body.

4. Misleading future promises

Future-oriented statements such as "Climate neutral by 2030" are only permissible if a publicly accessible, detailed and externally audited implementation plan exists. This plan must contain concrete measures, timelines and measurable targets.

What the EmpCo Directive means for SMEs

From 27 September 2026, the following aspects determine whether the marketing communication of an SME conforms to the EmpCo Directive:

1. Scope of the claims: All marketing materials, including website content, brochures, social media posts and product packaging, fall within the scope of the Directive where they contain environmental claims.
2. Substantiation obligation: Environmental claims must be accurate and substantiable; unfounded claims are inadmissible unless supported by appropriate evidence.
3. Recognised certifications: Recognised certificates can serve as substantiation for environmental claims. These include, for example, EU-Bio, Demeter, Naturland, Bioland, Fairtrade FLO, GOTS, OEKO-TEX 100, Bluesign, FSC, PEFC, EU Ecolabel, Blauer Engel, ISO 14064-1, ISO 14068, SBTi, Gold Standard, VCS, B Corp, Cradle to Cradle, EMAS and ISO 14001. Note that ISO 14001 is an environmental management system and does not represent product certification.
4. Clear communication: Environmental claims must be clear, precise and based on concrete facts and measurable results. Under Section 5 UWG and the EmpCo Directive (EU 2024/825), the use of the term "natural" without concrete explanation can be misleading.
5. Documentation: In the event of an audit by competitors or authorities, evidence is required to demonstrate compliance with the EmpCo Directive.

Legal consequences of violations

Violations of the EmpCo Directive can lead to substantial fines. The exact level of fines is set by individual Member States; under Germany's transposition (§ 19 UWG), the fine can reach up to €50,000. Where annual turnover exceeds €1.25 million, the statutory maximum is up to 4 % of the turnover achieved in the affected EU member state — and this applies only in EU-wide coordinated CPC enforcement actions (Art. 21 Reg. 2017/2394), not as the regular consequence. The regular consequence in an individual case is a warning/cease-and-desist and, where applicable, damages. In addition, violations can also trigger civil claims from consumers or competitors. Courts have consistently held under Section 5 UWG that misleading advertising — including blanket sustainability claims — can give rise to claims for damages and injunctive relief.

The EmpCo Directive represents a substantial change for marketing decision-makers in SMEs. From the application date on 27 September 2026, the requirements set out above determine the legal admissibility of environmental advertising; communication that does not meet them carries legal risk.