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.

Practical recommendations for SMEs

To ensure compliance with the EmpCo Directive, SMEs should undertake the following steps:

1. **Inventory:** Conduct a comprehensive analysis of all marketing materials, including website content, brochures, social media posts and product packaging. Identify all statements that could potentially violate the EmpCo Directive. 2. **Review of claims:** Review all environmental claims for their accuracy and substantiability. Remove unfounded claims or supplement them with appropriate evidence. 3. **Use certifications:** Use recognised certifications to substantiate your environmental claims. Recognised certificates 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:** Formulate your environmental claims clearly, precisely and understandably. Avoid vague or misleading formulations. Focus 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:** Document all relevant information and evidence in order to be able to prove, in the event of an audit by competitors or authorities, that you comply 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, but can amount to up to 4 % of the company's worldwide annual turnover. 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 challenge for marketing decision-makers in SMEs. However, early engagement with the new rules and careful implementation of the above recommendations are essential to minimise legal risks and win consumer trust.