From 27 September 2026, sustainability claims such as ‘climate-friendly production’, ‘sustainably packaged’ and ‘carbon-neutral by 2030’ could become a serious liability risk. The EmpCo Directive is now in force – and it has a direct impact on day-to-day communication practices.

The Empowering Consumers for the Green Transition Directive, or the EmpCo Directive for short, has been in force across the EU since March 2024. In Germany, it was implemented in competition law through an amendment to the UWG, which has been in force since March 2026. What long seemed like an abstract regulatory proposal has thus become an operational reality: companies may now only make environmental and social claims if these are clear, specific and verifiable.

Why EmpCo is a communication issue

The EmpCo Directive significantly tightens the requirements for sustainability reporting. In future, companies will only be permitted to make environmental and social claims if they are clear and verifiable. The aim is to effectively protect consumers from misleading claims and greenwashing. Particular focus is placed on:

• General environmental claims without verifiable, substantiated evidence
• Sustainability labels without an independent, officially recognised certification scheme
• Promises of climate neutrality based on offsetting – i.e. ‘climate neutral’ or ‘CO₂-neutral’ – where the claim is not based on actual reductions in product emissions but on the purchase of carbon credits
• Future-oriented promises without a public implementation plan
• Advertising that takes the obvious for granted – i.e. highlighting characteristics as special environmental features when they merely meet statutory minimum requirements
  

Breaches may result in warnings from competitors and consumer protection organisations, damage to reputation and fines of up to 4 per cent of annual turnover.

This means the EmpCo regulations affect communications teams in their day-to-day work. Whether it’s website content, press releases, social media posts, product descriptions or sustainability campaigns – they are all produced by communications and marketing departments. Close collaboration between communications, legal and sustainability management is essential for ensuring work complies with EmpCo regulations.

The question remains: how quickly does all this need to happen?

No grace period – but no blanket cuts

There is no formal grace period. The European consumer protection authorities have made this clear, whilst also announcing that they will exercise discretion when enforcing the rules. Specifically: where genuine practical transitional challenges exist – such as with packaging cycles or stock levels – a risk-based and proportionate approach should be taken.

However, swift action is expected for claims that can be amended at short notice – on websites, in digital advertising materials, and on social media.

How quickly action must be taken is only one aspect of the matter. It is at least as important to take a broader view: EmpCo is often not the only set of regulations that applies to a particular statement.

The underestimated dual risk: when the PPWR and EmpCo come into effect simultaneously

EmpCo is not alone in this. Anyone wishing to establish future-proof sustainability communication today must understand the interplay of regulatory requirements. The EU Packaging and Packaging Waste Regulation (PPWR) is a good example of this.

The PPWR comes into force on 12 August 2026 and sets out binding requirements for what packaging must achieve. For communications teams, it can also serve as a guide when interpreting EmpCo. One aspect: what the PPWR prescribes as a statutory minimum requirement must not, under the EmpCo, be advertised as a specific environmental claim. Anything going beyond this can, in principle, be communicated – provided the statement is specific, verifiable and not misleading.

A concrete example illustrates the direction things are heading: the PPWR sets out a phased system of mandatory recyclability levels for packaging from 2030 onwards. As soon as ‘recyclable’ becomes the statutory minimum requirement for all packaging, it may no longer be advertised as an environmental benefit, as the EmpCo prohibits the highlighting of matters that are simply a given. What remains communicable, then, is the added value: a particularly high recycled content, or a reduction in packaging beyond the mandatory level. Those who are already aware of this today can align their communication strategy with product development. This is not an isolated case: various EU regulatory initiatives are interlinked and can mutually exacerbate liability risks. For corporate affairs teams, this means not only keeping an eye on EmpCo, but also understanding the interplay between regulations.

One area in which this interplay is particularly often underestimated is sustainability reporting.

Sustainability reports: Formally on the sidelines, but at the heart of communication

Many companies believe themselves to be in the clear because statutory mandatory reports – such as those under the CSRD – do not fall within the scope of the EmpCo requirements. These reports are mandatory and are primarily aimed at investors. As such, they do not constitute a commercial act within the meaning of the UWG in relation to consumers. When it comes to competitors, the situation is less clear-cut: the UWG protects not only consumers but also competitors from unfair practices. In this context, warning letters from competitors are a key enforcement tool under German competition law.

This is precisely where the challenge lies. The UWG applies not only to traditional ‘advertising’ but to any commercial practice – that is, any behaviour that serves, even indirectly, to promote sales. And as soon as a statement from the report finds its way into consumer-facing communications – in press releases, social media posts, CEO statements or product communications – it becomes precisely that. In practice, there is no clear-cut distinction between the report and such communications.

Klenk & Hoursch therefore recommends treating sustainability reports, where possible, as if they were subject to EmpCo. This is because statements from reports are often understood internally as ‘approved’ – and thus end up in newsletters or on Instagram faster than one would like. And even where report content never reaches consumer communications, there is no risk of unfair competition vis-à-vis competitors.

The right question is ‘What risk are we taking?’

Anyone waiting for definitive clarity on all applications of the EmpCo is likely to be waiting a long time. The final, authoritative interpretation of the EmpCo Directive and its implementation in the UWG will not come from official documents, but from court rulings. New standards become more clearly defined through legal proceedings.

In practical communication terms, this means that in many cases there is no clear right or wrong, but rather a spectrum ranging from high risk to low risk. A general claim such as ‘Our services are sustainable’ without any substantiation carries a high risk. A clearly substantiated, specific statement with a source reference and a measurable basis carries a low risk. There is a great deal in between. This is the space in which communications teams operate on a daily basis.

Risk-based thinking is a professional reality. It allows communication not to grind to a halt, but to be steered in a targeted manner: Which claims are essential for our positioning? Which can be substantiated with a reasonable amount of effort? Where should we deliberately refrain from making statements because the risk is too high?

Communications teams cannot make these judgements on their own. To do so, they need close coordination with the legal department and sustainability management, as well as clear internal guidelines to structure such decisions.

The time for observation is over: how communications teams should act now

Communications teams that take action now can leverage EmpCo as a strategic opportunity. Klenk & Hoursch recommends a structured, six-phase approach to achieving EmpCo readiness:

1. Raising awareness and clarifying responsibilities. Establishing a shared understanding of the issue: Who is affected, what are the risks, and who is responsible for which statements? EmpCo is a joint initiative involving the Communications, Legal and Sustainability departments.

2. Set up stock-taking. Systematically record all environmental and sustainability claims across all channels and assign them a risk rating – from the website to casual product descriptions.

3. Defining a communicative approach. To define the direction and level of assurance with which the company will continue to communicate – as a documented strategic approach.

4. Laying the foundations. Developing robust guidelines with clear dos and don’ts, as well as approval processes, linked to existing brand guidelines.

5. Empower teams. Enable staff to recognise critical statements for themselves and formulate them confidently – through training, practical examples and appropriate tools.

6. Consolidate and monitor. Turn EmpCo-compliant communication into established routines: regular reviews, clear responsibilities, ongoing market monitoring.

EmpCo is an opportunity to make sustainability communication clearer, more substantiated and more robust. Companies that view this as a strategic opportunity will not only be in a stronger legal position, but will also communicate more credibly.

To find out where your communications team currently stands on the path to EmpCo readiness and what specific next steps are right for your company, visit our page on the topic: EmpCo-Hub - Klenk & Hoursch