Empowering Consumers Directive & Green Claims Directive: The Do’s and Don’ts for Compliance

Sustainability claims are under the spotlight like never before, drawing attention not only from environmentally-conscious consumers, but also of EU legislators. Two game-changing pieces of legislation – the Empowering Consumers Directive (ECGT) and the Green Claims Directive (GCD) – will soon tighten the rules around green marketing, requiring urgent measures from companies across all sectors.

So if you are in charge of marketing and communications within an EU company, go ahead and bookmark this page. In this special guide we bring you not only an overview of both policies, but also key do’s and don’ts for compliance, and strategic recommendations to place you ahead of these regulatory changes.

Want someone with deep experience and connections in the EU to help guide your sustainability strategy? Get in touch!

Legislation Overview: The ECGT and GCD In a Nutshell

Both the Empowering Consumers Directive and Green Claims Directive have been born out of the ambitions of the EU Green New Deal, and are aimed at protecting consumers’ interests and advancing the bloc’s green transition, as well as putting a stop to the proliferation of false and misleading green claims; also known as greenwashing.

As part of the EU Communication Framework, both policies apply to companies of all sizes (microenterprises might be excluded – TBC), and target B2C communication. However, considering the regulatory trends we have observed, B2B companies would be wise to also proactively align their strategies with current EU legislation.

The EU Empowering Consumers Directive (ECGT)

The ECGT is a broad piece of legislation designed to update the existing Unfair Commercial Practices Directive (UCPD). It sets horizontal rules covering a wide range of commercial practices, with a particular focus on environmental and sustainability claims. The directive bans vague and misleading claims such as “eco-friendly” or “ecological” unless they are substantiated with clear terms and evidence. It also places restrictions on sustainability labels, requiring them to be based on recognised certification schemes. Additionally, companies making future environmental performance claims, such as climate targets, must provide an implementation plan and demonstrate third-party monitoring of their progress.

The ECGT has been finalised and is now in the transposition phase, with Member States expected to incorporate its provisions into national law by Q3 2026.

For an in-depth analysis of the legislation, read our full article on the Empowering Consumers Directive.

The EU Green Claims Directive (GCD)

The GCD builds on the ECGT by providing more detailed rules on how companies communicate environmental claims about their products and services. One of its most significant aspects is the introduction of a pre-approval system, requiring companies to verify their green claims before using them in marketing materials. The directive also sets stricter requirements for aggregated and carbon offsetting claims, ensuring that companies provide clear and verifiable evidence to support them.

Currently in the trilogue phase, the GCD is expected to be finalised by mid 2025, with full application anticipated from 2028. Member States will need to transpose the directive into national law, and additional secondary legislation will specify further verification processes.

You can consult our full article on the Green Claims Directive, for a more detailed assessment of this policy.

The Do’s and Don’ts for ECGT

Navigating these new regulations will likely be challenging even for the most well-structured marketing and traceability departments, so we have prepared some strategic guidelines to help you avoid common pitfalls and successfully move towards compliance.

The DOs

General Best Practices

• Substantiate Your Argument: Always have robust evidence to back up your sustainability claims. We recommend keeping detailed records and documentation that can be readily provided to authorities if required.
• Ensure Clarity and Accuracy: Claims must be truthful, presented in a clear, specific, accurate, and unambiguous manner. Transparency is key.
• Provide Comprehensive Information: Include all the information necessary for consumers to make informed decisions. This means detailing all significant environmental impacts related to the product or service.
• Engage Third-Party Reviews: Whenever possible, organise an independent third-party review to validate your claims. This not only strengthens your credibility but also helps you anticipate potential challenges.

Specific to Product Claims

• Specify the Scope of Your Claims: Clearly indicate whether your claims apply to the entire product, only parts of it or its packaging, or to a specific stage in the product lifecycle.
• Consider the Full Lifecycle: When making environmental claims, consider the product’s environmental impacts over its entire lifecycle, including those related to the supply chain. This holistic view will help ensure that your claims are comprehensive and compliant.

The DON’Ts

General Pitfalls

• Avoid Vague Statements: Do not use broad, general statements without providing clear evidence and specifying the relevant aspects of the product the claim relates to. Expressions like “conscious” and “responsible”, for example, can refer to various social or economic conditions, and be considered too vague, potentially making such claims non-compliant.
• Be Careful With Your Terminology: Refrain from using popular terms such as “eco-friendly”, “green”, “natural”, “animal-friendly”, “climate friendly”, “gentle on the environment”, “plastic-free”, “biobased” or similar expressions, unless they are supported by proven excellent environmental performance.
• Questionable Sustainability Labels: Avoid displaying a sustainability label that is not based on a recognised, independent certification scheme or not established by public authorities.
• Unsound Climate-Related Claims: Do not make climate-related claims that rely solely on carbon offsetting schemes or that lack clear, verifiable targets and a detailed, realistic implementation plan.

Specific to Product Claims

• Distorting Product Information: It is essential not to distort or misrepresent claims regarding the composition, manufacturing process, transport, or end-of-life impacts of your products. For instance:
  • Claiming that a product is made of “100% recycled content” when only part of the product meets that criterion.
  • Advertising a product as containing “sustainable cotton” is misleading if the cotton’s origin is neither traceable nor separated from conventional cotton within the production chain.

Other Strategic Considerations & Recommendations for EU Businesses

To comply with the ECGT and GCD, organisations under the scope will have to develop traceability systems capable of gathering and storing comprehensive data, including that related to their supply chain.

However, companies may also rely on recognised environmental labelling schemes to substantiate their claims. The Parliament and Council are considering the possibility of simplifying the pre-approval (verification) process for claims that are backed by verified labelling schemes, which could ease the compliance burden for many businesses.

There is also ongoing debate about whether Product/Organisational Environmental Footprints (PEF/OEF) will be deemed acceptable as proof for substantiating environmental claims. Should these methodologies be approved, they could simplify the process of making environmental impact claims. However, it is important to note that these methodologies can be costly and have faced criticism – particularly concerning their approach to biodiversity impacts.

Recommended Next Steps

• Prepare Your Data: If not already implemented, immediately start developing the systems required to gather and securely maintain the relevant data to substantiate any claim. Without robust data, even the most well-intentioned claims can fall short of compliance.
• Review and Update Communications: Review your marketing and in-store communications in line with the guidelines of the ECGT and the do’s and don’ts outlined above.
• Prioritise Cross-Functional Collaboration: Once the GCD is finalised, involve your legal, sustainability, marketing, and supply chain teams in a thorough review of all communications. This collaborative approach will help ensure that every claim is fully substantiated and compliant.
• Monitor Other Relevant Legislation: Several other policies may impact how companies communicate about sustainability, so it’s important to monitor the EU landscape. The Ecodesign for Sustainable Products Regulation (ESPR), for example, will soon define mandatory sustainability-related information requirements via future delegated acts.

Key Takeaways

The new ECGT and GCD directives represent a significant shift in how companies communicate about sustainability. As businesses, it’s urgent to review your communication strategies and get ready for compliance, taking into account the new requirements and the costs associated with claim substantiation and certification processes.

Naturally, these are complex policies and the recommendations above only scratch the surface of what marketing and other departments need to consider to make a smooth transition. So if you’re looking for expert guidance to avoid costly mistakes while navigating these new rules, get in touch with our team!

Together, we can ensure that your communication and sustainability strategies are not only compliant, but give you a real competitive edge in Europe’s greener future.

Want someone with deep experience and connections in the EU to help guide your sustainability strategy? Get in touch!

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