A new EU law will prohibit vague environmental claims such as “sustainable” and “eco-friendly” on product labels unless companies can prove the assertions. The rules take effect across the 27 member states on September 27.
The Empowering Consumers for the Green Transition Directive, known as EmpCo, bans generic terms without demonstrated excellent environmental performance. It also outlaws offset-based claims like “climate neutral” and whole-product assertions based on partial evidence. Products already on shelves need no updates, but new production must comply.
The European Commission adopted revised sustainability reporting standards on July 3 that cut mandatory disclosures by more than 60 percent. An earlier change raised the reporting threshold to firms with more than 1,000 employees and €450 million in net revenue, leaving roughly 8,000 companies subject to the rules.
Double materiality remains in place, requiring disclosure of both financial impacts and effects on people and the planet. However, requirements for greenhouse gas emissions, microplastics, and human rights have been narrowed.
Enforcement will occur through national consumer authorities, with the European Commission noting that the related Green Claims Directive proposal has been shelved.
