No more greenwashing: What the implementation of EmpCo means for companies

Terms such as "environmentally friendly", "climate neutral" or "green" have been part of the standard repertoire of advertising companies for years. This will soon come to an end – at least in this general form. On December 19, 2025, the German Bundestag approved the implementation of Directive (EU) 2024/825 on empowering consumers for the green transition – known as the "EmpCo Directive". The new regulations will apply from September 27, 2026, including to products already on the market. Companies therefore only have a tight time window to adapt their advertising, packaging and communication to the new requirements.

Starting point: The BGH ruling "climate neutral" as a pioneer

The Federal Court of Justice (BGH) had already predefined the direction. In its ruling of June 27, 2024 (Ref. I ZR 98/23), it prohibited a confectionery manufacturer from advertising its products as "climate neutral" because the advertised neutrality was based solely on compensation payments to climate protection projects and this limitation was not disclosed in the advertising itself, but only via a QR code on an external website. The BGH established two key principles: Firstly, particularly strict requirements for accuracy, unambiguity and clarity apply to environment-related advertising claims – as they do to health-related claims. Secondly, CO₂ reduction and CO₂ compensation are not equivalent; reduction is to be given priority from a climate protection perspective.

The EmpCo Directive now codifies these evaluations and at the same time goes significantly beyond the previous legal situation.

Implementation in German law

The central implementation instrument is the Third Act amending the UWG (German Act Against Unfair Competition). In addition, amendments to consumer contract and insurance contract law will come into force, which among other things concern pre-contractual information obligations regarding repairability, durability and software updates. Since the text of the Directive leaves little room for implementation, the legislator has adopted the European specifications largely word-for-word.

New terms, new standards

In § 2 UWG, the key terms "environmental claim", "generic environmental claim", "recognized excellent environmental performance", "sustainability label" and "certification scheme" are legally defined for the first time.

The generic term "environmental claim" is designed exceptionally broadly. It covers all statements and representations in commercial practice that – whether through text, images, graphics, symbols, labels or even brand and company names – give the impression that a product or company has a positive or in any case lesser environmental impact. In its FAQs published in December 2025, the European Commission additionally clarified that pictorial design elements alone – such as colors associated with nature or symbols – do not yet constitute an environmental claim. However, if they are used in conjunction with textual information, the overall design may very well be assessed as a generic environmental claim and fall under the requirements of the Directive. The perception of such elements as a kind of quality label is also conceivable, with the consequence that the stricter requirements for sustainability labels apply.

Expanded misleading elements

In addition to the new definitions, § 5 UWG will also be adapted. Ecological and social characteristics are explicitly listed there as essential product characteristics about which consumers can be misled. The same applies to information on durability, repairability and recyclability. Anyone advertising longevity will therefore have to hold resilient evidence in the future.

New per se prohibitions in the "Black List"

The most practically relevant amendments are found in the expanded "Black List" (Annex to § 3 Para. 3 UWG). The commercial practices listed there will in future be inadmissible without any case-by-case examination – their application alone constitutes a competition infringement:

Unsubstantiated generic environmental claims.

Advertising buzzwords such as "environmentally friendly", "green", "ecological", "climate friendly", "CO₂ friendly", "energy efficient", "biodegradable" or "bio-based" may only be used in the future if they are based on a "recognized excellent environmental performance". Such performance exists, for example, if the requirements of the EU Ecolabel, the Blue Angel or comparable officially recognized environmental labeling schemes in accordance with EN ISO 14024 Type I are met. Alternatively, the generic environmental claim may be admissible if it is specified clearly and in a prominent manner on the same medium. For the majority of companies, proving such a qualified environmental performance is likely to represent a significant practical hurdle.

Self-created sustainability labels without certification. Trust marks, quality marks and comparable labels intended to highlight ecological or social product characteristics are only admissible if they are based on a certification scheme that is open to all market participants under transparent and non-discriminatory conditions and is monitored by an independent third party. Furthermore, there must be a separation of personnel between the owner of the label and the examining body. Labels that companies have developed themselves and award without external control are therefore no longer permissible. The Commission has also clarified in its FAQ that labels established exclusively by a governmental body of a non-EU state are likewise inadmissible – unless they themselves are based on a certification scheme.

Product-related compensation advertising. In the future, it is prohibited to attribute a neutral, reduced or positive environmental impact to a product on the basis of greenhouse gas offsets. The legislator thus follows the principle that the BGH had already formulated in the "climate neutral" ruling: compensation and actual emission reduction are not equivalent.

Strict specifications for future promises

In addition to the per se prohibitions of the Black List, the legislator is also tightening the misleading provisions of § 5 Para. 3 UWG: anyone who publicly announces climate-related targets – such as "climate neutrality by 2035" – must in future support this with clear, objective and publicly visible commitments that are laid down in a detailed implementation plan. This must contain measurable intermediate targets and adequate resource planning. In addition, regular verification by an independent external expert is prescribed, whose findings must be made available to consumers. Unlike the per se prohibitions of the Black List, this offense requires a misleading examination – the requirements for proof are nevertheless high.

Advertising with social characteristics

Less noticed, but equally relevant in practice: the new rules are not limited to ecological aspects. Misleading claims regarding social product characteristics – such as fair working conditions or social standards in the supply chain – are also explicitly covered. Labels relating to such social characteristics are subject to the same requirements as environmental labels.

Relevance for brands and branding

An aspect particularly relevant for IP practice: the Commission has expressed the view in its FAQ that registered trademarks and product names are also covered by the Directive if they contain environmental terms. For example, anyone who carries their trademark with the component "Eco", "Green" or "Climate" must comply with the respective requirements for generic environmental claims. If the owner cannot do so, the Commission even considers it possible that the trademark registration itself may be refused from the perspective of unfair competition law. Companies are therefore well advised to review not only their advertising but also their trademark strategy and their entire visual identity for potential conflicts with the new regulations.

Demarcations: Sectoral law and CSRD

For terms such as "bio" or "eco" in the food sector, sector-specific regulations primarily apply – namely Regulation (EU) 2018/848 on organic production. The EmpCo Directive does not apply in this respect. On the other hand, designations such as "vegan" or "vegetarian" may, depending on the context, qualify as environmental claims if they suggest an ecological benefit.

Sustainability reports prepared in accordance with the CSRD do not, in principle, fall within the scope of the Directive, as they are mandatory and primarily aimed at investors. The situation is different if companies voluntarily adopt content from these reports into their consumer-facing advertising – in which case the requirements of the EmpCo Directive apply without restriction.

Deadlines and legal consequences

The new regulations will apply from September 27, 2026 – without any transition period and also for existing products. Although the Bundestag, in an accompanying resolution, called on the Federal Government to obtain a one-year sell-off period from the European Commission for goods produced until then, it remains to be seen whether the Commission will agree to this request.

Enforcement takes place through the established mechanisms of competition law: competitors, trade associations and consumer protection organizations can demand injunctions, issue warning letters and obtain temporary injunctions. In addition, claims for damages can be considered. In the case of widespread infringements with a Union-wide dimension, fines of up to four percent of annual turnover are also possible (§ 20 Para. 4 UWG).

What companies should do now

The time window until September 2026 is tight, especially since adjustments to product packaging regularly require considerable lead time. Companies should therefore promptly subject their entire sustainability communication to a structured review – from packaging and labels to online presences, trademarks and branding elements with an environmental reference. Generic environmental claims must either be replaced by specific, verifiable specifications or deleted without replacement. Own labels without external certification must be replaced. For climate-related future promises, a documented and externally verified implementation plan is indispensable. Addressing the new requirements early on is not only a matter of legal certainty, but also offers the opportunity to place one's own sustainability communication on a resilient foundation.