The time has come: since September 27, strict rules have applied to vague sustainability claims, sustainability labels and claims about future environmental performance. The good news: the ACM may sometimes take a more flexible approach to enforcement relating to existing stock. Still, gray areas remain, including changes to claims associated with sustainability labels, verification of claims about future environmental performance, and vegetarian and vegan logos. The Code for Sustainability Advertising (Code voor Duurzaamheidsreclame) has been updated, including additional guidance. Know what you are saying, and avoid ‘greenhushing’.

The EmpCo Directive (also known as the ECGT Directive) has far-reaching consequences. Many companies were well prepared, but many others only took action at the last minute. Vague sustainability claims are now prohibited, sustainability label certification is being reviewed on a large scale and vast quantities of packaging need to be updated. 

Selling off remaining stock
The European network of enforcement authorities (CPC) says that regulators such as the ACM may take a more flexible approach to enforcement. To qualify, a company must be able to show which steps it has already taken. Examples include internal decision-making, discussions with advertising and design agencies and suppliers, and scheduling updated packaging with the printer. That means a constructive discussion with the ACM first, rather than an immediate fine. Remember: existing stock is not a free pass, so keep a clear record of the steps you have already taken.

Sustainability labels: new certification, new claims
The EmpCo Directive has a major impact on sustainability labels, with strict rules on access, addressing non-compliance and independent assessment. Label owners often also impose new requirements on the associated claims. Here too, consult the label owner, update your packaging as soon as reasonably possible, and document every step you take. Update website content and social media posts immediately.

Sustainability and environmental ambitions
The EmpCo rules require companies to have an independent verifier assess their action plan. What that assessment involves and who may carry it out remain unclear. The European Commission refers to annual or biennial assessments; the amended Code for Sustainability Advertising uses the term ‘regularly’. We believe that the first verification should take place no earlier than September 2027 (or 2028 in the case of a biennial verification cycle).. It is also unclear how EmpCo verification relates to audits under the CSRD.

Vegetarian and vegan: product characteristic or sustainability claim?
In our view, a plant image and the color green used with vegetarian or vegan claims and labels do not automatically amount to a prohibited claim under EmpCo. The logo must not, however, create the impression that it is an official certification mark. The exact look and feel matters.

Throughout, companies must avoid misleading claims. But complexity, costs and risks should not deter companies from communicating their environmental claims. That could lead to ‘greenhushing’. No one benefits from that: neither consumers nor the environment.