EmpCo Directive and the 2026 Amendment to the Unfair Competition Act: What Now Applies to Corporate Environmental Claims

As of July 2026

The EmpCo Directive has been implemented in Germany: Starting September 27, 2026, significantly stricter rules will apply to advertising that highlights environmental benefits. General claims such as “climate-neutral” or “environmentally friendly” without reliable evidence will be prohibited—for all companies in the B2C sector, regardless of industry or size. This article outlines what specifically will change and what steps make sense to take now.

Key Points at a Glance

• The EmpCo Directive (EU) 2024/825 was implemented in Germany by the Third Act Amending the UWG, published in the Federal Law Gazette on February 19, 2026 (BGBl. I 2026 No. 43).
• The new rules will take effect on September 27, 2026—and will also apply to existing advertising and packaging materials.
• General environmental claims (“environmentally friendly,” “green,” “sustainable”) are now permitted only if they are based on proven, recognized, outstanding environmental performance.
• In the future, claims of being “climate-neutral” based solely on offsetting will not be permitted; sustainability labels will only be allowed if they are based on certification or government standards.
• This affects all B2C companies; violations can result in warning letters, injunctions, and reputational damage.
• The separate Green Claims Directive remains unaffected: Its proposal was blocked in June 2025—the EmpCo requirements apply regardless.

What is the EmpCo policy?

The EmpCo Directive is EU Directive (EU) 2024/825 on “Empowering Consumers for the Green Transition.” It amends the European Directive on Unfair Commercial Practices and the Consumer Rights Directive and aims to protect consumers from misleading environmental claims. It entered into force at the EU level in March 2024.

Definition: EmpCo Directive (Directive (EU) 2024/825) – An EU regulation aimed at combating greenwashing that governs advertising to consumers that highlights environmental benefits. Implemented in Germany through the Law Against Unfair Competition (UWG); effective as of September 27, 2026.

The directive focuses on communication, not reporting: It applies to advertising, product descriptions, packaging, and online presence in business dealings with end customers. It is therefore distinct from the reporting requirements of the CSRD.

What changes will the 2026 amendment to the UWG bring about in Germany?

Germany has implemented the EmpCo Directive through the Third Act Amending the UWG. The Bundestag adopted the amendments in December 2025, and they were published in the Federal Law Gazette on February 19, 2026 (BGBl. I 2026 No. 43). The new provisions are mandatory as of September 27, 2026; until then, the previous law remains in effect.

Essentially, the amendment expands the so-called “blacklist” of the UWG—those business practices that are always considered unfair, regardless of a case-by-case assessment. New additions include a ban on general, unsubstantiated environmental claims, stricter requirements for sustainability labels, and rules governing statements about future environmental performance. In addition, the law introduces pre-contractual disclosure requirements, such as regarding repairability, the duration of software updates, and environmentally friendly delivery options.

Which environmental claims will be deemed inadmissible?

In particular, blanket environmental claims without concrete evidence will be prohibited. Claims such as “environmentally friendly,” “climate-friendly,” “green,” or “sustainable” will be permitted in the future only if they refer to an objectively substantiated, recognized outstanding environmental achievement that directly relates to the advertised product or service.

Particularly relevant in practice: In the future, the claim “climate-neutral” may no longer be based solely on offset measures. Sustainability labels will only be permitted if they are based on a recognized certification system or are established by the government—proprietary labels or those not independently verified will no longer be allowed. Statements about future environmental goals (“climate-neutral by 2035”) are only permitted if they are based on a clear, time-bound, and externally verifiable implementation plan.

When does the EmpCo policy take effect—and who does it apply to?

The new requirements take effect on September 27, 2026, and generally apply to all companies engaged in B2C communication, regardless of industry or size. There is no de minimis threshold and no transitional provision for existing materials: Even packaging, catalogs, and online content that have already been produced must comply with the new requirements as of the effective date.

What does this mean for businesses?

Specifically, this means that as of September 27, 2026, every publicly visible environmental claim must be backed by documented evidence—or it must be removed. A sensible first step is to conduct a systematic review of all environmental communications.

1. Take stock of claims: Review advertising messages, product descriptions, packaging, the website, and social media for general environmental claims.
2. Verify supporting documents: For each remaining statement, obtain the underlying data and supporting evidence.
3. Evaluate labels: Determine the legal status of the labels used; replace or remove any labels that are not certified or that have been self-assigned.
4. Ensuring the reliability of future projections: Communicate climate goals only with a time-bound, verifiable implementation plan.
5. Establishing processes: Define responsibilities for approvals and ensure that business units are prepared for the new rules.

The challenge lies less in striking out individual words than in building a robust data foundation: Anyone who is no longer allowed to use the term “climate-neutral” needs a verifiable alternative—such as a documented, verified reduction achievement. This is precisely where the quality of the underlying carbon footprint comes into play.

EmpCo, the Green Claims Directive, and the CSRD—how are they related?

The EmpCo Directive is the binding regulation; the much-discussed Green Claims Directive is not. On June 20, 2025, the European Commission announced that it would withdraw the proposal for the Green Claims Directive; it is currently considered blocked and has not been formally adopted. The EmpCo, implemented through the UWG, is currently the governing regulation.

The Corporate Sustainability Reporting Directive (CSRD) is distinct from both: It governs sustainability reporting to the capital markets and the public, not advertising directed at consumers. EmpCo concerns what a company promises externally; CSRD concerns what it reports in a manner that stands up to scrutiny.

Our assessment: The real pressure to act will not arise on September 27, 2026, but in the weeks leading up to it—when companies realize that there is no reliable evidence to support common claims such as “climate neutral.” From a consulting perspective, it makes sense to combine the verification of these claims with the work on the carbon footprint assessment.

Conclusion: Evidence trumps claims

Starting September 27, 2026, it will no longer be the wording that matters, but the evidence. Companies should use the months leading up to that date to take stock of their environmental communications, secure supporting documentation, and translate climate goals into verifiable plans.

EmpCo-Readiness 2026: Determine which of your environmental claims are substantiated. A brief initial consultation will help identify where evidence is missing and which claims you should adjust. Schedule an initial consultation

Sources

1. European Union: Directive (EU) 2024/825 (Empowering Consumers), EUR-Lex (2024).
2. Federal Law Gazette: Third Act Amending the UWG, BGBl. I 2026 No. 43 (February 19, 2026).
3. BMJV: Legislative Process for the Third Act Amending the UWG (2026).
4. Federal Environment Agency: EU Adopts New Rules to Combat Greenwashing in Advertising (2024).
5. Latham & Watkins: Commission Announces Intention to Withdraw Proposal for the EU Green Claims Directive (June 2025).
6. BOEHMERT & BOEHMERT: The Status of Implementation of the EmpCo Directive in Germany (June 2026).