EU EmpCo rules put a 4% turnover risk behind environmental claims

On September 18, Reuters reported that the EU’s national rules implementing the Empowering Consumers for the Green Transition directive are due to apply from September 27, with penalties reaching 4% of annual turnover. The rules restrict generic claims such as “green” and “environmentally friendly,” prohibit self-created sustainability labels without qualifying certification and prevent carbon offsets from supporting product-level climate-neutrality claims. International businesses trading in the EU will need accessible substantiation that connects each consumer-facing claim to verifiable data, even where corporate reporting remains accurate at a broader level. Legal, sustainability and marketing teams should complete a claim-by-claim inventory before September 27 and distinguish direct operational reductions from offset-based contributions in labels, websites and product materials.