New Requirements for Environmental and Sustainability Claims under the EmpCo Directive

The EmpCo Directive: New Rules for Sustainability Claims

Since 27 September 2026, stricter requirements have applied in Germany to environmental and sustainability claims addressed to consumers. Describing a product as “green”, “climate-friendly” or “sustainable” is therefore no longer permissible without meeting specific legal requirements. Companies using such claims in their advertising must now ensure that they are legally compliant and adequately substantiated. The rules are based on Directive (EU) 2024/825, which Germany transposed through a reform of the German Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb (UWG)).

What has changed

The reform tightens the general prohibitions on misleading practices under Sections 5 and 5a UWG, which also apply directly in B2B relations: Section 5(2) no. 1 UWG now expressly refers to environmental and social characteristics, meaning that misleading statements about, for example, energy consumption, emissions or environmental benefits may be challenged.

At the same time, the so-called blacklist in the Annex to Section 3(3) UWG has been expanded. The blacklist identifies commercial practices that are always prohibited when dealing with consumers, without the need for a further case-by-case assessment. The new requirements generally apply across all sectors and to all forms of consumer communication, from packaging statements, websites and social media accounts to product names, logos and visual imagery. Claims originating from a foreign parent company or an international marketing team must also be reviewed for the German market.

The new systematic prohibitions in Section 3(3) UWG do not apply directly to purely B2B communications. However, sustainability information passed on by companies to retailers or distribution partners may still have an indirect impact if it is subsequently used in consumer-facing advertising.

Generic environmental claims under pressure

Under § 2(2) UWG, a “generic environmental claim” is a statement made by a company, whether in writing, orally or in audiovisual form, asserting an environmental benefit without clearly and prominently explaining that benefit in the same medium. This includes, in particular, terms such as “environmentally friendly”, “green”, “ecological”, “climate-friendly” and “biobased”. Such generic environmental claims will only be permissible if the company either explains the specific environmental benefit directly in the same advertising medium or can demonstrate recognised excellent environmental performance, for example through the EU Ecolabel or the Blue Angel. A mere reference to a website or a QR code is not sufficient. The explanation must be visible on the packaging, in the advertisement or on the relevant website itself.

Climate neutrality and future promises

The new rules on climate neutrality claims are particularly far-reaching. A product may no longer be advertised as “climate-neutral” or “CO₂-neutral” if that effect is achieved solely through external offsetting measures, such as purchasing carbon credits or financing reforestation projects. Companies may still inform consumers that they support such projects. However, such offsetting may not be presented as an environmental benefit of the product.

Forward-looking environmental claims such as “climate-neutral by 2030” or “Net Zero by 2040” are not prohibited outright. They must, however, be based on a detailed and realistic implementation plan containing measurable targets with defined deadlines, be publicly accessible and be reviewed regularly by an independent expert. Non-binding statements of intent are not sufficient.

Sustainability labels must be verifiable

Environmental and sustainability labels developed by companies will also be subject to stricter requirements. Under point 2a of the Annex to the UWG, the use of a sustainability label in consumer-facing communications is always prohibited if the label is neither based on a certification scheme nor established by a public authority. This applies even where the statement associated with the label is factually accurate.

A permissible certification scheme must be publicly accessible, transparent, fair and non-discriminatory. Its requirements must have been developed with the involvement of qualified experts and relevant stakeholders. The scheme must also provide for effective consequences in the event of breaches, such as suspension or withdrawal of the label. Compliance with the requirements must be monitored by an independent and competent third party.

Specific issues for software providers

The rules also apply to apps, software and cloud services: an environmental benefit of the data centre does not make the entire software “green”, and “climate-neutral SaaS” based on offsetting is prohibited. In addition, new software-specific prohibitions apply: companies may not withhold from consumers that an update will impair functionality, nor present a mere feature update as necessary. Before the contract is concluded, they must also state the minimum period for which software updates will be provided (Art. 246a § 1 (1) sentence 1 no. 11c of the Introductory Act to the German Civil Code).

What companies should review now

Companies should begin by taking stock of all environmental and sustainability-related claims. This includes not only packaging and websites, but also product names, brochures, app store descriptions, release notes, update notifications and visual design elements. For each claim, companies should determine precisely what it refers to: the product as a whole, the packaging alone, a particular stage of production, the hosting alone or the company’s overall business activities. An environmental benefit that concerns only one aspect may not be presented as a characteristic of the entire product or company.

Particular attention should be paid to goods already produced and packaging cycles that are under way. The new requirements generally also apply to goods that were placed on the market before 27 September 2026. There is no general sell-off period. For certain claims for injunctive relief relating to such products, a proportionality assessment must be carried out until 27 September 2028. This special proportionality assessment is conditional on the company having taken steps of its own to remedy the infringement. Companies wishing to rely on this provision should carefully document stock volumes, dates on which the goods were placed on the market and the corrective measures initiated. For software and digital services, this goods-related transitional rule is unlikely to help; online and in-app texts should therefore be amended without delay.

The marketing, product management, compliance and legal teams should assess the results of the review together and determine which claims need to be amended, removed or better substantiated. Companies can continue to make environmental claims about their products. They must, however, ensure that those claims are legally compliant and adequately substantiated.