EU’s updated anti-greenwashing rules: key changes and implications

KUALA LUMPUR, 28 SEPTEMBER 2026 —

EU regulators have put the final nail in the coffin of vague sustainability messaging with the entry into force of the Empowering Consumers for the Green Transition Directive – commonly known as EmpCo – on 27 September.

The change matters because it expands the scope of scrutiny and raises the stakes for non‑compliance. Under EmpCo, companies that mislead consumers can be fined up to 4 percent of the revenue generated by the offending product in the country where the breach occurs.

In addition to monetary penalties, authorities may order the removal of the product from retail shelves, require redesign of websites that host the offending campaign and even mandate the launch of advertisements that admit to greenwashing. The directive therefore forces firms to back every environmental claim with independent evidence before it reaches the market.

EmpCo builds on the EU’s earlier anti‑greenwashing legislation but tightens the rules. While the predecessor focused mainly on consumer products, the new directive applies to a broader range of commercial communications, including services such as energy provision, tourism packages and banking offerings. Some member states, Belgium and Germany, have already extended the remit to business‑to‑business communications, meaning that even internal marketing material may fall under the law’s purview.

The enforcement model is designed to compel firms to adopt a disciplined approach to sustainability messaging. “The easy part is being factual: you do not understand anything that is untrue,” said a participant in a round‑table organised by the nonprofit Anti‑Greenwash Charter.

“The hard part is making the fact land: saying something that interests people and that they understand.” The directive therefore obliges companies to secure independent substantiation for any claim they wish to publicise, shifting the burden of proof onto the marketer rather than the regulator.

Textile certification specialist OEKO‑TEX has already begun reshaping its operations to meet the new requirements. Alfred Beerli, chief executive of the firm, explained that the company started preparing for the EmpCo update two years ago by creating a separate verification arm within its organisation. “If you can prove it, you can say it,” Beerli said.

“If you cannot prove it, you should not have been saying it in the first place.” OEKO‑TEX’s strategy centres on offering brands a “solid ground” – an independent certification scheme that includes a certificate number and a QR code that shoppers can scan to verify the claim themselves.

One practical hurdle highlighted by industry observers is how to condense a fully evidenced claim into the limited space of a headline or small packaging label.

Charlie Martin, founder and chief executive of the Anti‑Greenwash Charter, noted that “the strongest claims are specific enough for people to understand, useful enough for people to care about and supported by evidence that can withstand scrutiny.” The directive’s emphasis on verifiable, concise messaging forces marketers to rethink how they craft sustainability narratives without sacrificing clarity or compliance.

The net effect of EmpCo is a heightened demand for rigorous, third‑party verification across all sectors that market environmental benefits. Companies that fail to adapt risk not only financial penalties but also reputational damage from mandatory corrective advertising and product withdrawals.

As the EU moves to enforce the rule uniformly across member states, firms with supply chains that touch the European market will need to audit their claims, secure independent certifications where possible and redesign communications to meet the new evidentiary standards.

The rollout of EmpCo signals a decisive shift toward accountability in green marketing, with the EU setting a benchmark that could influence regulatory approaches elsewhere. For businesses operating in or exporting to Europe, the directive makes clear that “if you can prove it, you can say it,” and that any unsubstantiated claim will be met with swift and costly enforcement.