The regulatory landscape for environmental advertising is shifting rapidly, with new EU directives poised to introduce stricter rules on “Green Claims” and Empowering Consumers for the Green Transition (“EmpCo”). These regulations will have a profound impact on how businesses communicate their sustainability efforts. Here’s what you need to know to stay compliant and competitive.
Part 1 of this series aims to provide a comprehensive factual overview of the changed regulatory landscape. Part 2 aims to provide more in-depth recommendations for automotive stakeholders.
1. What was/is the current legal landscape for Green Claims in Germany and the EU?
At present, Germany’s courts have taken a strict but inconsistent approach to environmental advertising claims. The Federal Court of Justice (BGH) has already ruled that statements like "climate neutral" are misleading if they rely solely on carbon offsetting rather than actual emission reductions. Furthermore, companies must clearly disclose how they achieve climate neutrality—burying details in a link or footnote is not enough.
At the EU level, there is no uniform regulation yet, leading to legal uncertainty. Companies currently navigate a patchwork of national laws, making compliance challenging.
However, this will soon change with the Green Claims Directive and the EmpCo Directive, both of which aim to harmonize and tighten rules across the EU.
2. What changes can we expect from the Green Claims and EmpCo Directive?
The Green Claims Directive will introduce stricter proof requirements for environmental statements. Businesses must:
- Base all claims on recognized scientific evidence.
- Ensure claims are clear, verifiable, and externally validated.
- Avoid vague or misleading phrases like "climate positive" unless substantial reductions are made and differentiate between carbon offsetting and actual reduction measures.
- Update environmental statements every five years.
- Have claims reviewed by independent bodies before using them in marketing.
A critical impact of this directive is that courts may still challenge approved Green Claims, making it even more important for businesses to ensure comprehensive documentation and transparency.
The (EmpCo) Directive will introduce a new blacklist of advertising practices that will be considered immediately unfair. This includes:
- Making unverified environmental claims.
- Using misleading sustainability labels without proper certification.
- Failing to provide scientifically sound evidence for environmental claims.
The directive applies not only to direct company communications but also to third-party certifications and supplier claims. Businesses must ensure that all partners along their value chain comply with the new regulations.
3. When will the definitive rules be finalized, and how much time do businesses have to implement changes?
The EmpCo Directive must be implemented by September 27, 2026, meaning that by this date, all EU member states will have adopted it into their national laws. Companies that fail to comply will face warnings, legal action, and potentially heavy fines.
The Green Claims Directive will likely follow shortly after, meaning that businesses must be proactive in preparing for both directives.
Immediate Action Required: Any marketing campaigns that run into late 2026 must already comply with EmpCo regulations to avoid potential legal risks.
Full Compliance Deadline: By September 27, 2026, all current Green Claims must be verified, documented, and in line with the new rules.
Ongoing Compliance: Since environmental claims must be reviewed every five years, companies must establish long-term monitoring and documentation processes.
4. What next steps should businesses consider?
To avoid legal risks, financial penalties, and reputational damage, companies should:
- Audit all existing environmental claims and assess them against the upcoming regulations.
- Review and update marketing materials to ensure compliance.
- Engage independent verifiers to validate claims.
- Monitor suppliers and partners to ensure compliance throughout the value chain.
- Adapt contracts to mitigate liability risks related to third-party claims.
While these new regulations may seem burdensome, they also offer a competitive advantage. Companies that invest in transparent, verifiable sustainability claims will earn greater consumer trust and stand out in the market. We will offer some concrete examples in the next iteration of our FAQ (see full list here).
The clock is ticking—now is the time to prepare for the future of Green Claims compliance.
