The European Union is set to revolutionize consumer protection laws with the implementation of the Empowering Consumers for the Green Transition Directive (EmpCo) on September 27. This groundbreaking legislation targets the rampant use of unsubstantiated environmental claims within the fashion industry, often referred to as greenwashing. Under the new directive, brands will be required to back up all sustainability assertions with verifiable third-party evidence, such as certifications or official labels. Furthermore, specific claims like "carbon offsetting" and "carbon neutrality" will be outright prohibited, signaling a rigorous crackdown on misleading marketing practices and aiming to rebuild consumer confidence in environmental statements.
Experts commend the comprehensive nature of these new regulations, which clearly define the scope of acceptable sustainability claims. Both explicit and implicit environmental declarations, ranging from common buzzwords to suggestive imagery, must now undergo independent verification. This shift raises questions about whether brands might resort to "greenhushing" – deliberately under-communicating their genuine sustainability efforts to avoid legal pitfalls – and whether existing third-party certifiers are adequately prepared for the anticipated surge in demand for their services. Re-establishing consumer trust, which has been eroded by years of vague and unproven claims, remains a significant challenge.
Fashion companies have had over two years to prepare for EmpCo, which was formally adopted in March 2024. The European Commission has long prioritized this issue, with a 2020 study revealing that over half of environmental claims made about products sold in the EU were unfounded, and 40% lacked substantiation. Recent high-profile cases have highlighted the urgency of this directive. In 2022, H&M faced scrutiny from Dutch and Norwegian consumer authorities regarding the environmental claims of its Conscious Collection, ultimately leading the brand to discontinue the line. More recently, fast-fashion giant Shein received substantial fines in France and Italy for misrepresenting its sustainability initiatives.
Previously, investigations into greenwashing were handled at the discretion of individual EU member states. EmpCo now provides a unified framework, ensuring consistent enforcement across the bloc. Any brand selling products within the EU, regardless of its origin, must comply with these new standards. Andreas Rasche, an associate dean at Copenhagen Business School specializing in sustainability regulations, describes EmpCo as "surprisingly robust" for EU legislation, noting its clear and unambiguous language, which aims to provide greater clarity and security for businesses. Importantly, EmpCo's scope extends beyond just environmental concerns to include misleading claims about the social characteristics of products and businesses, such as labor conditions and human rights, which are particularly pertinent in the fashion industry's complex supply chains.
The directive will also prohibit claims about an entire product when only a portion of it is sustainable, future sustainability targets without a clear strategy, and the presentation of legal requirements as unique product features. Some fear that the stringent regulations could lead to brands being overly cautious and reducing communication about their genuine sustainability efforts, even those that are third-party certified. However, industry leaders like Sandra Capponi, co-founder of Good On You, argue that the clarity provided by EmpCo removes any excuse for a lack of transparency. Compliance will require brands to integrate accurate and up-to-date product and supply chain data into all consumer-facing communications, ensuring that their practices align with their claims.
The new rules are expected to significantly increase demand for certifications that can verify complex supply chain data. The EU has established strict requirements for the transparency and objectivity of these certification schemes, aiming to enhance their reliability. Good On You, for example, has adapted its rating system to align with EmpCo, appointing an independent monitoring body and separating its commercial and ratings teams to ensure impartiality. Similarly, Oeko-Tex, a certification system for textiles, has worked extensively with companies to prepare for the directive, addressing their uncertainties about compliant claiming practices. Global Standards has also published a practical guide to assist companies in navigating the new regulations, emphasizing responsible communication and the protection of certification integrity.
However, certifications alone are not a panacea. Brands like Veja, known for its sustainable sneakers, emphasize the importance of strong supplier relationships and direct engagement. Co-founder François-Ghislain Morillion views certification as a minimum standard, advocating for direct factory visits and a deep understanding of the supply chain beyond mere paperwork. This hands-on approach allows for a richer narrative about their products, appealing to consumers' intelligence. Despite the complexities, Veja believes in providing detailed information, trusting that consumers will appreciate the depth of their commitment.
Consumer demand for sustainable products remains high, with studies indicating that a significant percentage of shoppers want to make environmentally conscious choices but struggle to identify such products. Organizations like Good On You receive numerous requests from consumers to rate brands, highlighting a continued desire for clear and reliable information. While shoppers appreciate the concept of carbon footprint information, understanding its intricacies can be a challenge. Brands must therefore focus on communicating essential information clearly and consistently. While the new claims will be more factual and substantiated, rebuilding consumer trust will take time, as shoppers gradually become accustomed to fewer but more precise environmental statements. For EmpCo to be truly effective, brands must ensure seamless alignment between their sustainability efforts and communication channels across all customer touchpoints.
