‘Climate-neutral’ was yesterday, what the EmpCo Directive will change now
Anyone who has filled their annual report, sustainability communications, or product marketing with terms like ‘climate-neutral,’ ‘environmentally friendly,’ or ‘green’ should now take a closer look. Starting in September 2026, new rules will apply in Germany and they are significant.
The EmpCo Directive (EU) 2024/825 has been in force since March 2024. In December 2025, the German Bundestag adopted the necessary legislative changes, including a tightening of the Act Against Unfair Competition (UWG). From September 2026 onward, the directive will be fully applicable.
What exactly will be prohibited
The core of the directive is clear: broad sustainability claims without a solid foundation are prohibited. Terms such as ‘climate-neutral,’ ‘biodegradable,’ or ‘environmentally friendly’ may only be used if they are supported by meaningful, verifiable, and externally validated evidence. Self-created environmental labels without a recognized certification process are also banned.
Future-oriented promises are also under stricter scrutiny: a statement such as ‘climate-neutral by 2030’ will only be permissible if the company defines concrete interim targets, presents a credible reduction plan, and allows for external verification. Compensation strategies alone such as merely purchasing CO₂ certificates without substantial internal reductions are no longer sufficient.
In addition, new information obligations are being introduced: durability, repairability, and software update periods for products must in future be communicated proactively and in an easily accessible manner.
No free pass if the Green Claims Directive fails
Many companies are currently watching whether the Green Claims Directive (GCD), which is being discussed in parallel, will actually come into force or whether it will fail in ongoing negotiations. The hope: if the GCD fails, the pressure disappears. This assumption is incorrect.
EmpCo is already binding law and will be fully applied in Germany from September 2026, regardless of the fate of the Green Claims Directive. The GCD would merely have introduced even stricter, more technically detailed requirements for the prior verification of environmental claims. EmpCo remains the central regulatory framework. Anyone waiting for the issue to resolve itself will be disappointed.
Who is affected and how serious are the consequences?
EmpCo applies to all companies offering products or services on the EU market, regardless of industry, size, or place of business. B2B companies are also affected as soon as their statements are reflected in end-consumer communication. SMEs benefit from certain transitional relief measures, but the fundamental obligations apply to them as well.
The sanctions are substantial: violations can result in fines of at least 4% of annual turnover. In addition, there is the reputational damage among investors, customers, and business partners, who scrutinize sustainability claims more critically than ever before.
Acting now pays off
The remaining time until September 2026 is shorter than it appears. Those who take a structured approach can meet the requirements and even strengthen their sustainability communications in the process. A two-step approach is recommended:
- Quick check of all existing claims: which are substantiated, which are high-risk candidates? This leads to immediate action—identify claims to be removed and revise critical statements.
- Structural review of labels and seals, as well as training for relevant teams in marketing, legal, and sustainability.
The key shift in perspective: EmpCo does not have to lead to less sustainability communication, but to better communication. Those who can substantiate their claims properly today will communicate more credibly than their competitors tomorrow.
With many years of experience in corporate communications and comprehensive sustainability expertise, Silvester Group supports companies in reviewing and realigning their sustainability reporting from analyzing existing claims to formulating future-proof statements.
