The EU's Empowering Consumers for the Green Transition (EmpCo) Directive takes effect September 27, 2026. It bans vague terms like 'eco-friendly' and carbon neutrality claims based solely on offsets, requiring substantiated evidence. Non-compliance risks fines up to 4% of annual turnover and marketing bans. The directive targets fast-moving consumer goods, retail, fashion, and consumer tech, and aligns with CSRD reporting standards. Businesses should start by auditing all consumer-facing claims, conducting lifecycle assessments and product carbon footprints per international standards, and building an evidence base. The challenge is operational: companies need cross-functional ownership to connect data, legal, and marketing. Those who prepare can turn compliance into a competitive advantage, as 85% of consumers remain concerned about sustainability. But watch for greenhushing, where firms stay silent to avoid scrutiny, which undermines the directive's purpose.
