Green, sustainable, environmentally friendly, climate-friendly. These terms have become an almost unnoticed part of corporate communications, appearing on websites, packaging, in advertisements, on social media and in sales materials. From 27 September, however, they will need to be used with considerably greater care.

From 27 September, evidence, not promises, will be required – this is what the EmpCo Directive is about

From that date, the new requirements introduced under the Empowering Consumers for the Green Transition Directive, or EmpCo Directive for short, must be applied. The regulation tightens the rules on the use of environmental claims and aims to enable consumers to make decisions based on more accurate, verifiable information. The Directive therefore poses a simple question to companies: can we substantiate what we claim about ourselves or our products?

The problem is not new

In its market analysis on green claims published in January 2024, the Hungarian Competition Authority (GVH) already concluded that businesses in Hungary often communicate about sustainability in broadly interpreted and unsystematic ways. According to the research, around 40 percent of advertisements containing sustainability-related content focused solely on building an environmentally conscious brand image. The GVH’s analysis also found that green claims affect how consumers perceive a product and how willing they are to purchase it, while many consumers do not understand the precise meaning of individual claims and labels. (https://www.gvh.hu/en/resolutions/sectoral_inquiries_market_analyses/market_analyses/the-formation-and-use-of-environmental-claims-by-market-players-related-proposals-and-guidance)

EmpCo provides a regulatory response to this problem. Greenwashing is therefore becoming an increasingly direct compliance issue, because sustainability claims must be supported by appropriate data, methodology and evidence.

What will happen to the familiar “green” terms?

The change does not mean that companies must remain silent about their sustainability achievements. Instead, they need to focus on specific, measurable and verifiable claims.

There is a significant difference, for example, between a company simply describing a product as “environmentally friendly” and stating that 70 percent of its packaging is made from recycled materials. Similarly, it is more precise to say that 100 percent of a plant’s electricity consumption comes from renewable sources, or that the amount of water used in production decreased by 18 percent between 2023 and 2025.

However, the figure alone is not enough. The data source, calculation method, basis for comparison and documentation supporting the claim must also be in order.

Carbon neutrality is a particularly sensitive area

“Climate-neutral” and “carbon-neutral” claims require particular attention. The new regulation restricts product-level communications that base neutrality on the offsetting of greenhouse gas emissions.

The focus is increasingly on what the company has actually changed in the product’s life cycle, its own operations or its value chain.

Substantiation is also becoming more important for future commitments. A climate target for 2030 or 2050 must be supported by a clear commitment, measurable interim targets, an implementation plan and appropriate verification.

A picture can also make a claim

When preparing for EmpCo, reviewing advertising copy is therefore not enough. Sustainability labels and companies’ own “green” logos should also be reviewed. The use of labels is also subject to stricter requirements and, as a general rule, they must be linked to an appropriate certification scheme or a scheme established by a public authority.

Moreover, environmental messages can be conveyed by more than words alone. Leaves, water droplets, images of nature, colours and other visual elements can together create an impression that suggests an environmental benefit.

Communication can therefore convey a “green” message even if the word “sustainable” does not appear in it at all.

Marketing, ESG, legal or compliance?

One of the practical questions companies need to address as they prepare in September is who is responsible for environmental claims.

Marketing formulates the message, the ESG function understands the underlying data, the legal and compliance teams assess the compliance risk, while the business function knows the product and its actual performance. These functions need to work together to ensure safe operations. It is therefore advisable to establish a clear internal process defining who provides the data, who verifies its validity, who approves the claim and where the supporting documentation is stored.

What should companies do before 27 September?

As a first step, it is advisable to identify every channel on which an environmental claim appears.

This may include:

• the corporate website and product pages,
• packaging and labels,
• advertisements and campaign materials,
• social media platforms,
• brochures and sales presentations,
• the company’s own sustainability logos and visual elements.

Each claim should then be examined to determine exactly what it says, what data supports it, whether the calculation methodology is appropriate and whether verifiable documentation is available. The first task, therefore, is not to formulate new sustainability messages. Companies should first check whether they will still be able to substantiate tomorrow what they claim about themselves today.

The work will not end after 27 September

At the beginning of September, the GVH specifically drew businesses’ attention to the fact that, from 27 September, their commercial communications containing green claims must also comply with the new provisions. The authority also indicated that it would update its Green Marketing Guide based on its experience with the practical application of EmpCo.

The longer-term task is therefore to establish an operating model in which the verification of sustainability claims becomes a natural part of communications. This requires appropriate data, clearly defined responsibilities and a consistent approval process, and expert support should certainly be considered.

The purpose of EmpCo is therefore not to restrict sustainability communications. What matters is ensuring that the “green” label is supported by substantiated claims that allow the company’s customers or clients to make genuinely informed decisions.

If you would like to review whether your company’s sustainability claims and the underlying ESG data comply with the new requirements, Grant Thornton’s experts can support you in preparing for the changes.