The EU is tightening the rules on green claims as of September 2026 – and 20 Member States are already facing infringement procedures for failing to fully transpose the Empowering Consumers Directive (EU) 2024/825 in time.
For companies, this Directive is not “just another compliance exercise”. It fundamentally reshapes how sustainability is communicated to consumers – and it directly links to CSRD and ESRS reporting.
What changes?
The Directive bans misleading environmental and social claims, prohibits offset‑based “climate neutral” claims, regulates sustainability labels, and requires clear information on durability, reparability and software updates. It also targets early obsolescence and misleading digital practices.
Who is in scope?
All traders engaging in B2C practices: manufacturers, importers, retailers, marketplaces (for their own offers), digital service providers, and anyone acting on behalf of a business. SMEs included.
To comply:
- Map and audit all environmental and social claims used in public documents and communication – remove generic claims (“eco‑friendly”, “green”, “biodegradable”) unless backed by recognised excellent environmental performance.
- Eliminate offset‑based neutrality claims – “climate neutral”, “CO₂ compensated”, “net zero” are banned unless based on actual lifecycle emissions.
- Ensure future climate claims are credible and verifiable – requiring public commitments, measurable targets, a detailed implementation plan, independent verification, and published progress.
- Review all sustainability labels – only labels based on credible certification schemes or public authorities remain allowed.
- Provide durability and reparability information – including spare parts, repair restrictions, and minimum software update periods.
- Update product design and marketing to avoid early obsolescence practices.
The Directive and CSRD/ESRS now form a single consistency framework:
👉 A company cannot say to consumers what it cannot prove in its ESRS disclosures.
This means marketing, product teams, sustainability, legal and finance must work from the same evidence base.
How CSRD/ESRS help you comply
The Directive’s requirements for credible climate claims map directly to ESRS:
- Public climate-related commitments → ESRS E1 strategy & transition plan
- Measurable, time‑bound targets → ESRS GDR-T
- Implementation plan →ESRS E1 transition plan (actions, investments, milestones)
- Independent verification → CSRD assurance
- Published progress →ESRS GDR-M and GDR-A annual performance reporting
If you build robust ESRS disclosures, they automatically create the documentation needed to substantiate consumer‑facing claims – reducing legal risk and strengthening trust.
Key takeaway
This Directive is not only about avoiding greenwashing fines. It is an opportunity to align sustainability strategy, reporting, and consumer communication – and to use CSRD/ESRS as the backbone for credible, defensible climate and sustainability claims.
The EU’s Empowering Consumers Directive: What It Means for Companies — and How CSRD/ESRS Can Help You Comply
The EU is entering a new era of consumer protection. As of September 2026, companies operating in the EU/EEA will face a fundamentally different regulatory landscape for environmental claims, sustainability labels, durability information, and digital product practices. The Empowering Consumers for the Green Transition Directive (EU) 2024/825 is designed to ensure that consumers can make informed, sustainable choices — and that businesses communicate honestly and transparently.
The European Commission has already taken action: on 28 May, it opened infringement procedures against 20 Member States for failing to fully transpose the Directive. This is a clear signal that enforcement will be strict and that companies should not expect leniency.
This article explains the Directive, who is affected, what companies must do, and how CSRD/ESRS reporting can be leveraged to comply.
1. Why This Directive Was Introduced
The Directive amends two pillars of EU consumer law — the Unfair Commercial Practices Directive (UCPD) and the Consumer Rights Directive (CRD) — to make them fit for the green transition.
The rationale is straightforward:
Consumers cannot make sustainable choices if the information they receive is misleading, incomplete, or unverifiable.
The Directive therefore targets:
- Greenwashing
- Misleading environmental or social claims
- Non‑credible sustainability labels
- Early obsolescence
- Hidden repair restrictions
- Misleading software update practices
It aims to create a level playing field where genuinely sustainable products can compete fairly — and where consumers can trust what they are told.
2. Infringement Procedures: A Warning Signal
Member States had until 27 March 2026 to transpose the Directive. Twenty have not yet communicated full transposition. The Commission has therefore issued letters of formal notice, the first step in an infringement procedure.
If Member States fail to respond satisfactorily within two months, the Commission may issue a reasoned opinion — a formal, detailed statement explaining the breach and setting a compliance deadline. This is the final step before referral to the Court of Justice.
For companies, this matters because it shows the Commission’s determination to enforce the Directive — and because national transposition delays do not delay the obligations for businesses.
3. Who Is in Scope?
The Directive applies to all traders engaging in B2C commercial practices in the EU/EEA, including:
- Manufacturers
- Importers and distributors
- Retailers (online and offline)
- Marketplaces (for their own offers)
- Providers of digital goods, digital content, and digital services
- Repair and subscription service providers
- Anyone acting on behalf of a business (agencies, franchisees, intermediaries)
SMEs are explicitly included.
4. What the Directive Changes
A. Combatting Greenwashing and Misleading Claims
The Directive introduces strict rules to ensure that environmental and social claims are accurate, substantiated, and not misleading.
Ban on generic environmental claims
- Terms like “eco‑friendly”, “green”, “biodegradable”, “climate friendly” are prohibited unless backed by recognised excellent environmental performance.
Ban on offset‑based climate claims
- Claims such as “climate neutral”, “CO₂ compensated”, “net zero” are banned unless based on actual lifecycle emissions, not offsets outside the value chain.
Ban on claims about an entire product or business when only part is sustainable
- Example: “Made with recycled materials” when only the packaging is recycled.
Future climate claims must be credible
A trader must have:
- Public commitments
- Measurable, time‑bound targets
- A detailed implementation plan
- Independent third‑party verification
- Published progress
B. Regulating Sustainability Labels
The Directive prohibits sustainability labels that:
- Are not based on a certification scheme, or
- Are not established by a public authority
Certification schemes must meet minimum standards of transparency, independence, and monitoring (e.g., ISO 17065).
This will significantly reduce the proliferation of private, non‑credible labels.
C. Addressing Early Obsolescence and Digital Practices
The Directive bans:
- Features designed to limit durability
- Software updates that degrade performance
- Practices inducing premature replacement of consumables
- Withholding information about negative impacts of updates
It requires transparency when third‑party consumables or spare parts impair — or do not impair — functionality.
D. Strengthening Pre‑Contractual Information
Companies must provide clear information on:
- Durability
- Reparability score (when available)
- Spare parts availability and cost
- Repair restrictions
- Minimum software update periods
- Commercial guarantees of durability >2 years (with a harmonised EU label)
A harmonised legal guarantee notice must also be displayed.
5. What Companies Must Do to Comply
Map and audit all environmental and social claims
- Remove or substantiate generic claims.
Eliminate offset‑based neutrality claims
- Rebuild climate messaging around actual emissions reductions.
Ensure future climate claims are credible
- Update transition plans, set measurable targets, engage verifiers, and publish progress.
Review all sustainability labels
- Remove labels that lack credible certification.
Provide durability and reparability information
- Update packaging, product pages, and pre‑contractual disclosures.
Review product design and software practices
- Avoid early obsolescence and misleading update practices.
Train marketing, product, and legal teams
- Ensure consistent understanding of the new rules.
6. How CSRD/ESRS Help Companies Comply
The Directive and CSRD/ESRSreinforce each other:
- The Directive protects consumers from greenwashing.
- CSRD/ESRS protect investors and regulators from greenwashing.
Together they create a single consistency requirement:
A company cannot say to consumers what it cannot prove in its ESRS disclosures.
This is where CSRD becomes a strategic asset.
This means:
- Marketing claims must be aligned with ESRS data
- Climate neutrality claims must reflect ESRS rules on offsets
- Future‑oriented climate-related claims must match the ESRS transition plan
- Any inconsistency becomes both a consumer‑law breach and a CSRD compliance risk
7. The Strategic Opportunity
This Directive is not only about avoiding greenwashing fines. It is an opportunity to:
- Align sustainability strategy, reporting, and consumer communication
- Strengthen credibility with consumers and regulators
- Use CSRD/ESRS as the backbone for all climate‑ and sustainability‑related claims
- Build trust through transparency and evidence
Companies that act early will be better positioned — legally, commercially, and reputationally — when enforcement begins in September 2026.
Sources:
Commission takes action to ensure complete and timely transposition of EU directives
