From 27 September 2026, EU member states must apply new rules on environmental claims made towards consumers, as imposed by the Directive on Empowering Consumers for the Green Transition (ECGT Directive). This impacts how companies can communicate about their future environmental performance. Claims about such performance must be based on a plan verified by an independent third-party expert. In this article, we discuss the scope of these new rules and how the verification rules could be applied in practice.
New rules
The ECGT Directive amends the Unfair Commercial Practices Directive (UCPD), aiming to regulate voluntary environmental claims as commercial practices − by identifying various practices that could be considered unfair.
Assuming this impacts or is likely to impact consumers' decisions, the making of claims about future environmental performance without clear, objective, publicly available and verifiable commitments will be regarded as misleading conduct. Such commitments must be set out in a detailed and realistic implementation plan that includes measurable and time-bound targets, as well as other relevant elements necessary to support its implementation. The plan must be regularly verified by an independent third-party expert, whose findings are to be made available to consumers.
Broad scope of covered communication
The UCPD's scope of application is broad, covering any voluntary communication by a company that is directly related to the promotion and sales development of its products to consumers, including communications about the company itself. Similarly, the scope of environmental claims regulated by the EGCT Directive is broad. It includes any message or representation, in any form, which states or implies that a product, product category, brand or trader has a positive or zero impact on the environment, is less damaging to the environment than others or has improved its impact over time.
Given this broad definition, environmental statements and commitments (for example, on targets and ambitions) included in voluntary climate action plans or on an "About us" page may fall within scope if directed at consumers. As a result, companies may have to substantiate these statements with independent verification.
The new rules do not typically apply to corporate sustainability reporting, such as annual reports or disclosures required under the Corporate Sustainability Reporting Directive. The UCPD does not apply to mandatory reporting or communications aimed at investors. However, where a company uses such information in voluntary advertising or marketing directed at consumers, the communication falls within the UCPD's scope and could be subject to the new verification requirements introduced by the ECGT Directive. Companies are therefore advised to exercise diligence when communicating mandatory sustainability reporting to a consumer audience.
Verification requirements remain unclear: limited assurance by auditor may be enough
The ECGT Directive does not prescribe specific requirements for the verification process or what qualifications the independent third-party expert must have.
The Q&A published by the European Commission explain that the expert must be independent from the trader, be free from conflicts of interest and have experience and competence in environmental matters. The Q&A further clarify that the process must ensure the expert can monitor the trader’s progress towards its environmental commitments and targets, and can provide credible, objective and regular assessments. Private auditors or consultancy firms could, for example, serve in this role.
The implementation plan must be verified regularly. According to the Commission's Q&A, best practices would suggest annual or biennial reviews, or additional verification if significant changes occur.
In the interest of establishing a coherent legal framework for environmental communications, we believe that limited assurance provided by an auditor might well be enough to satisfy the new verification requirements. Under the Corporate Sustainability Reporting Directive (CSRD), companies now only need to obtain limited auditor assurance on their sustainability reporting. To reduce costs and regulatory restraints for companies, the Omnibus I Package removed the previously envisaged requirement to obtain "reasonable" assurance. Invoking the limited assurance obtained about a firm's CSRD report as verification within the meaning of the new ECGT Directive would align with the Commission's objectives.
With the regulatory landscape surrounding ESG and consumer protection laws continuing to evolve at pace, further guidance on the interpretation and enforcement of these new rules is anticipated. We will continue to closely monitor developments in this space.
