The EU’s Empowering Consumers for the Green Transition Directive (commonly known as Empowering Consumers Directive or simply EmpCo) takes effect from 27 September 2026. It introduces tougher rules governing environmental claims, sustainability labels, decarbonisation commitments and product durability information. For companies communicating with consumers in the EU, now is the time to review whether sustainability claims are clear, substantiated and supported by credible action.

From claims to credibility: The demand for evidence-based sustainability communications

Companies making environmental and sustainability claims face growing pressure to prove that their messaging is accurate, evidence-based and aligned with real-world performance.

Ambitious commitments such as ‘net zero by 2050’ or ‘carbon neutral’ have become commonplace, but regulators, investors, NGOs and litigators are increasingly looking beyond the claims themselves to examine whether a company's sustainability strategy, commitments and transition plans are realistic, achievable and aligned with its wider business activities. This shift reflects growing concern over greenwashing, alongside increasing regulatory scrutiny. Organisations are increasingly expected to substantiate claims, acknowledge important assumptions and limitations, demonstrate how targets will be achieved and ensure communications reflect business reality rather than aspiration alone. EmpCo is a significant development in that shift.

Why EmpCo matters and what it requires

EmpCo marks a shift from voluntary sustainability storytelling towards evidence-based, legally defensible claims.

The rules apply to companies making environmental claims to consumers in the EU, regardless of where they are headquartered. While green claims regulation is often associated with advertising and packaging, businesses should consider environmental messaging wherever consumers encounter it, including websites and other marketing and corporate communications. Sustainability reports may also warrant review where their content is reused in consumer or customer communications.

Among its key provisions, EmpCo:

• restricts vague and generic environmental claims such as ‘eco-friendly’, ‘green’, ‘responsible’ or ‘sustainable’ unless they can be clearly substantiated
• prohibits claims that a product has a neutral, reduced or positive greenhouse gas impact if the claims rely solely on offsetting emissions
• requires claims about future environmental performance, including decarbonisation goals, to be supported by clear, objective, publicly available and verifiable commitments and by a detailed implementation plan
• requires independent third-party verification of progress towards those commitments
• places restrictions on sustainability labels unless they are based on recognised certification schemes
• strengthens consumer protections concerning misleading claims about durability, repairability or expected product lifespan.

Non-compliance may result in enforcement action by national authorities, alongside potential financial penalties, including fines of up to 4% of annual turnover for widespread infringements, alongside reputational damage and loss of stakeholder trust.

What should organisations do now to prepare for EmpCo?

Although member states are responsible for implementing and enforcing EmpCo, businesses do not need to wait before preparing. They can start by:

• reviewing environmental and sustainability claims across websites, reports, marketing materials and product communications
• reviewing decarbonisation commitments to ensure future-facing claims are supported by credible plans, milestones and evidence
• testing the evidence behind environmental claims and removing or revising claims that could be considered vague, overly broad or difficult to substantiate
• checking sustainability labels and durability claims, including certification schemes and claims concerning product lifespan or repairability
• establishing governance processes for reviewing and approving sustainability-related claims, and aligning sustainability, communications, legal and marketing teams around a consistent approach.

Organisations looking to strengthen governance around sustainability claims may also benefit from reviewing their broader sustainability strategy and communications framework.

EmpCo is part of a much bigger trend

EmpCo sits within a broader shift towards greater accountability in sustainability communications. Around the world, regulators are strengthening expectations around transparency, evidence and governance. Recent developments include California's climate disclosure requirements, the introduction of ISSB-aligned sustainability standards in the UK and Japan, and a growing focus on sustainability-related litigation and enforcement.

The regimes may differ in scope and application, but the direction of travel is clear: organisations need to substantiate what they say, avoid vague or exaggerated language, and communicate both achievements and limitations transparently.

For multinational businesses, that makes consistency increasingly important. A claim developed for one market or channel can quickly find its way into another, particularly as content from corporate reports is repurposed by marketing and sales teams.

Preparing for greater scrutiny

EmpCo presents a communications challenge as much as a compliance one. Environmental claims may appear across websites, campaigns, product information, sales materials and corporate content, requiring sustainability, communications, legal and marketing teams to work together.

Organisations that can demonstrate progress, explain trade-offs transparently and communicate environmental performance in a balanced and evidence-based way will be better positioned to build trust with consumers, investors and regulators alike.

From sustainability communications audits, readiness checks and claims reviews through to reporting, strategy and stakeholder communications, Flag help companies assess whether their messaging is clear, credible and aligned with emerging regulatory expectations, including EmpCo.

If you would like to discuss an EmpCo readiness review or greenwashing audit across your reporting and communications channels, get in touch with our team.