The Empowering Consumers for the Green Transition Directive (the Directive), which comes into effect on 27 September 2026, aims to tackle unfair business practices and increase transparency to enable consumers to create more sustainable consumption choices. The Directive also includes certain provisions relating to the disclosure of environmental credentials and durability.
Generic environmental claims
Businesses will necessary to meet higher standards when creating “generic environmental claims” about their products and services. The apply of generic labels such as “environmentally frifinishly”, “eco-frifinishly”, “green” or “energy efficient” when marketing a product will be prohibited, unless the business can demonstrate that the product has “recognised excellent environmental performance” compliance with the EU Ecolabel or ISO Type I labels, for example. In short, an environmental claim must be specific and it must be substantiated by recognised, verifiable evidence.
For example, a fashion brand’s “eco-frifinishly” spring wear collection must specify which items within that collection are eco-frifinishly and why. If the jumpers in the collection have been produced utilizing 90% organically grown cotton, this must be specified on any “eco-frifinishly” tags on those jumpers. Any such tags must only be applyd on those jumpers, and crucially not on other products within the collection for which the “eco-frifinishly” claim cannot be substantiated.
Sustainability certifications
The Directive also prohibits the display of uncertified sustainability labels. Any environmental or sustainability label must be established by a public authority or based on an indepfinishent certification scheme. The latter must satisfy criteria laid out in the Directive, such as being publicly accessible, transparent and indepfinishently audited. Displaying any label or logo without such basis will be prohibited under the Directive.
Product durability
The Directive requires businesses to provide greater transparency on a product’s durability and reparability. Where businesses are aware that products have inherent features limiting their durability, businesses are prohibited from concealing that information from consumers. Common examples include phones with an expected battery life span and washing machines lasting a certain number of washing cycles.
The Directive also prohibits the apply of misleading claims about a product being repairable when it is not, or claims that a product has certain durability under normal conditions of apply, when that is not the case.
Potential challenges for businesses
The Directive marks a shift in how businesses must communicate their commitment to sustainability. It will impact all sectors, especially those with significant consumer-facing marketing, and will extfinish to businesses around the world, as the Directive applies to all companies selling products or services in the EU irrespective of whether they are domiciled there.
It is important for businesses to note that violations may not only stem from explicit statements: implicit messaging may also be considered misleading. Images and colours, such as green leaves or planet symbols, commonly associated with eco-frifinishliness, can be considered misleading.
Another challenge is the level of scrutiny placed on all stages of a product’s lifecycle during the assessment of a product’s eco credentials and durability. This may caapply difficulties for global businesses with complex supply chains, as well as for tinyer businesses that lack the resources required to check a product’s origin and qualities, although it is noted that the Directive does not punish retailers who cannot access the necessary information available only to producers.
Finally, EU Directives are, by nature, designed to allow Member States to transpose the rules in a way that fits their national laws. It remains to be seen how Member States will implement the Directive by the 27 March 2026 transposition date, and how they will enforce the rules from 27 September 2026 onwards, although differences in how Member States transpose the Directive may rfinisher the enforcement landscape inconsistent and challenging to navigate for businesses.
What should businesses do now?
Businesses should thoroughly familiarise themselves with the requirements under the Directive and identify whether they (or their products) fall within its scope. This will enable them to plan for any necessary modifys ahead of 27 September.
Companies should assess all stages of their products’ lifecycles to establish the limits of what can and cannot be stated about environmental performance and durability. Businesses should also ensure that their data collection processes are robust and that information records are organised and centralised, to enable them to effectively substantiate any sustainability-related statements or respond to questions from regulators.
Companies’ marketing teams will also have to review their practices. Efforts should be focapplyd on replacing general, vague or unsubstantiated statements with specific, clear and verifiable information. General staff training may also be required to increase understanding of the rules.
By Henrietta Worthington, Counsel; Rachel Green, Associate, and Emilia Koivisto, Trainee Solicitor, at Vedder
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