Rules set out in Directive (EU) 2024/825 come into force on 27 September 2026. The new ECGT rules will reshape how businesses communicate environmental claims in the EU. Is your organisation impacted and are you ready?
What is ECGT?
ECGT stands for “Empowering Consumers for the Green Transition” and is the commonly used shorthand for Directive (EU) 2024/825. The Directive was adopted by the European Parliament and Council and entered into force on 26 March 2024 and will apply to EU organisations from 27 September 2026.
The ECGT rules are, essentially, consumer protection measures aimed at preventing misleading environmental claims and improving transparency about sustainability. They require businesses to substantiate environmental claims. They also restrict the use of unverified labels and logos that claim or imply green credentials.
What do the new rules stipulate?
The ECGT directive takes the form of amendments to directives already in force that govern unfair commercial practices (Directive 2005/29/EC) and consumer rights (Directive 2011/83/EU). Essentially the directive updates existing EU consumer law to curb misleading marketing related to the environmental and social characteristics of a product and other forms of greenwash. The rules target unsubstantiated generic claims such as “environmentally friendly” and ban the display of sustainability labels that are not based on approved certification or established by public authorities. They also introduce clearer rules on claims about durability, reparability and commercial guarantees and update the EU list of prohibited unfair commercial practices to include unsubstantiated green claims.
For businesses selling products and services in the EU, the core message is that sustainability claims must be clear, specific and backed by evidence.
How will UK businesses be impacted?
ECGT rules are EU measures, not UK legislation, so they matter most where a UK business markets to EU consumers, sells into the EU, or supports EU-facing sustainability claims through packaging, websites or supply chains. If your business is in a value chain that ends with EU consumers, it may be time to review how you describe your products, services, and sustainability benefits if you haven’t done so already.
How does ECGT align with UK regulations?
For UK businesses, there are already legislative requirements and other strong imperatives in place requiring truth in green claims. These include:
- The Competition and Marketing Authority (CMA) Green Claims Code explains how businesses should make environmental claims under UK consumer law, including that claims must be truthful, clear and substantiated.
- The Digital Markets, Competition and Consumers Act 2024 (DMCCA) incorporates the UK’s unfair commercial practices regime and acts as the primary legal framework for prohibiting misleading advertising claims, including greenwashing, and grants the CMA powers to directly impose fines of up to 10% of global turnover on firms or £300,000 for individuals.
- The Advertising Standards Authority (ASA) and the Committee of Advertising Practice (CAP) regulate environmental claims in the UK. Their reach extends to advertising claims across all media, including online and social media influencer content. A public register of ASA rulings detailing case histories exerts reputational pressure on firms and their marketing and advertising departments and partners.
- Effective as of 31 May 2024, the FCA Anti-Greenwashing Rule applies to financial services and investment products. It requires all authorised firms to ensure sustainability references are correct, clear, complete and comparable.
What does ECGT mean for B Corps?
The ECGT rules are particularly relevant to B Corps because they regulate how sustainability credentials and labels are communicated. The Directive restricts the use of non-approved labels and requires claims to be clear and substantiated. As B Corp certification is a proprietary scheme, businesses must ensure it is not presented as a broad environmental claim. In practice, this means avoiding overgeneralisation and linking certification to specific, evidence-based claims. While most B Corps are aligned with the intent of the rules, greater precision in marketing and stronger internal controls may be required.
B Lab has published specific guidance for B Corp organisations potentially impacted by ECGT. Legal advice is recommended to ensure compliance. But be aware: the clock is ticking! According to B Lab:
By submitting by 15 July 2026 in good faith and actively pursuing recertification, your company can continue using the B Corp logo and making certification‑related claims while your recertification is being completed, even if the verification process is not fully finalised by 27 September 2026. However, B Lab cannot determine your company’s legal position under the ECGT Directive or guarantee that there is ‘no risk’ with EU regulators if you are not yet certified on the new standards by that date. We therefore strongly recommend consulting your own legal advisers about any remaining risk in your specific products, markets, and communications.
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