EmpCo Directive Explained

Directive on Empowering Consumers for the Green Transition

The Directive 2024/825 of the European Union (EU)* entered into force on March 27, 2024, and Member States have two years (until March 27, 2026) to incorporate it into national law. Then, the Member States will have a six-month transition period until September 27, 2026.

The Empowering Consumers ("EmpCo") Directive prohibits misleading environmental and sustainability claims in order to enable consumers to make informed purchasing decisions. The Directive seeks to empower consumers by:

• Setting clear and transparent standards for the use of environmental and sustainability claims;
• Avoiding greenwashing and misleading claims about environmental and sustainability benefits of products and services; and
• Ensuring a more transparent and credible use of certification and ecolabels. 

In addition to these basics, here are main details of the EmpCo Directive relevant to anyone involved in tourism marketing and sustainability communication, both within the EU and worldwide. 

*See the full document here.

Does this mean we can no longer communicate about sustainability?

No! 

It is true that the new rules place additional pressure on companies that are genuinely working on sustainability and - rightly - want to communicate about their efforts. But this should not discourage companies from communicating about our sustainability actions and commitments.

We should also see the stricter regulatory environment as an opportunity for less greenwashing and more honest sustainability communication. Those companies that have already been taking sustainability seriously and have concrete proof of action now have more opportunities to set themselves apart from competition, as vague and misleading marketing claims about being sustainable, eco and green are forbidden, and only concrete and verifiable statements are allowed. 

Does the Directive only cover environmental claims?

While there is a strong emphasis on claims related to ecological sustainability, in the context of the directive both ecological and social aspects are relevant, including claims regarding social, cultural and economic sustainability (e.g. working conditions, equal treatment, human rights or animal protection).

Does the Directive mean all EU countries have the same requirements? 

Marketing claims are subject to the specific laws and requirements of each country. For EU member states, this means that the EmpCo Directive represents the minimum requirements that must be met. In addition, the specific regulations of each country apply (e.g., Act against Unfair Competition - or UWG - in Germany).

Is the Directive only relevant to companies based within the EU?

The scope of the EmpCo Directive is target market oriented (i.e. consumers in EU countries), addressing everyone who is in the EU. This includes not just citizens and full-time residents, but also those who are temporarily visiting the EU (e.g., tourists, business travelers, students), regardless of their nationality.

As such, the Directive applies to all companies that market products or services that can trigger commercial transactions within the EU internal market – regardless of where the company is based.

In some cases, stricter legal regulations may apply in the countries where the company is based, as some countries (both in and outside the EU) already have their own laws on this matter, for example:

• UK Competition and Markets Authority (CMA) - Green Claims Code
• State of California - Voluntary Carbon Market Disclosures Act (AB 1305)
• Government of Canada - Environmental claims and the Competition Act
• Japan Ministry of Environment (MOE) - 環境表示ガイドライン
• Australian Competition and Consumer Commission (ACCC) - Guidance on environmental and sustainability claims

Does the Directive apply to small businesses?

Yes, the Directive applies to companies of all sizes with commercial activities that are / can be targeted to consumers in the EU (see the definition of the “target market” above). 

The Directive is about consumer protection, so it does not affect B2B communication, right?

While the main aim of the Directive is to protect consumers, B2B communication is not excluded from the scope of the Directive, because it covers all marketing activities that have or can have an effect on consumers in the EU, regardless of the intention of the communicator. This means the requirements of the Directive are relevant to all publicly visible communication materials (including, for example, LinkedIn posts, reports for partners and members).