It looks like sustainability regulation is speeding up yet again. After the EU shook things up with the Omnibus Directive, new rules are already on the horizon. One of them is “EmpCo” – the Empowering Consumers Directive, which targets greenwashing and aims to make environmental claims much more transparent for consumers.
Key facts:
Directive in force since 2024 | need to be adopted to national legislation until end of March 2026 | in force on national level from September 2026 | no transition period | unreliable labels are banned | transparency on environmental and social characteristics
What is EmpCo & Goal of EmpCo
The directive, officially designated as EU 2024/825 is designed to empower consumers to make informed, sustainable purchasing decisions. The goal is to prevent greenwashing and misleading environmental claims. The directive establishes comprehensive rules requiring companies to provide clear, objective, publicly available and verifiable information about their products’ environmental and social characteristics, durability and repairability. EmpCo prohibits companies from making vague environmental claims such as declaring themselves “green” or “environmentally friendly” without demonstrating substantiation through verified evidence. Additionally, the directive bans unreliable sustainability labels, prevents false claims about product durability and reparability, and restricts the use of unfair commercial practices linked to early obsolescence.
Scope of EmpCo
EmpCo applies broadly to all commercial entities operating in the EU market, with no exceptions for online shops or small businesses. EmpCo applies extraterritorially, which means that it does not matter where you are located. As long as you are selling in the EU market, you need to apply.
EmpCo is often mixed with the Green Claims Directive (GCD). Both are independent Directives by EU but they are complementary. But while EmpCo is in force, the GCD remains on hold and without confirmation but not just rumours says that the GCD will be entirely stopped.
The difference between both are:
a) EmpCo focuses on communicative integrity and presentation to consumers, regulating how environmental and social claims are communicated and displayed.
b) GCD addresses substantiation requirements, specifying how companies must scientifically prove their environmental claims before communicating them.