EU implements new rules to combat greenwashing and misleading environmental claims

The European Union has implemented the Empowering Consumers for the Green Transition Directive (EmpCo) to combat greenwashing and misleading marketing. The directive aims to ensure that environmental claims made by businesses are specific, substantiated, and transparent.

According to the European Commission, three out of four products on the EU market carry an explicit or implicit environmental claim, yet more than half are considered vague, misleading, or unfounded. Additionally, nearly half of the 230 identified ecolabels in the EU lack strong verification procedures. The new rules prohibit various misleading practices and strengthen requirements for sustainability labels across sectors including food, clothing, cosmetics, and detergents.

The directive defines an environmental claim broadly, encompassing words, images, graphics, symbols, and brand names that suggest a positive or reduced environmental impact. While the legislation does not prevent businesses from marketing their sustainability efforts, it mandates that all such messages must be accurately communicated and supported by evidence. Businesses marketing to consumers in the EU must comply with these heightened standards to protect consumers from unsupported claims such as “eco-friendly” or “carbon neutral.”