GUIDE

Empowering Consumers for the Green Transition Directive: What Every Business Needs to Know

Generic green claims are not enough

From September 2026, broad environmental claims such as:

• “Eco-friendly”
• “Green business”
• “Environmentally friendly”
• “Climate friendly”

will become much harder to use without evidence behind them.

Who is this relevant to?

• Businesses established in the EU
• Businesses outside the EU that market products or services to EU consumers
• Retailers, manufacturers, service providers, hospitality groups and any organisation communicating sustainability claims to customers in the European market.

Unless these claims can be supported by recognised evidence of environmental and social performance, they may be considered misleading under EU consumer protection law.

The Directive also aims to prevent businesses from overstating their sustainability credentials. For example, a company can’t market a product as “sustainable” if that claim rests on a single isolated initiative, such as switching to recycled packaging or installing energy-efficient lighting. The message is simple: customers deserve a complete and accurate picture of your sustainability journey, not a highlight reel.

Ambition matters, but so does evidence

Many businesses have set targets to reduce emissions, improve resource efficiency or reach net zero. The new rules don’t discourage organisations from setting these bold goals. Instead, they encourage businesses to back those ambitions with:

• Clear, measurable targets
• A realistic implementation plan
• Regular monitoring
• Transparent reporting on progress

It’s no longer enough to talk about where you’re going. Businesses need to demonstrate how they’re getting there.

This is where having the right tools makes all the difference

FuturePlus is an impact management platform that helps businesses of every size and sector measure their impact, identify where they can improve, and demonstrate progress over time. Through an Actual Score that reflects current performance and an Ambition Score that captures future commitments, organisations can build a practical roadmap across Climate, Environment, Social, Economic and Diversity & Inclusion.

Rather than relying on aspirational messaging, businesses can communicate genuine progress backed by evidence.

Trust in sustainability labels is becoming essential

One of the biggest changes introduced by the Directive concerns sustainability labels.

From September 2026, businesses will no longer be able to display sustainability labels unless they are either established by a public authority or based on a genuine certification scheme.

The aim is to reduce the growing number of self-created badges and logos that can confuse consumers, and to make it easier for customers to identify sustainability claims they can trust.

For businesses, this means taking a closer look at any sustainability marks displayed on websites, product packaging and marketing materials to ensure they’re backed by transparent standards, independent governance and robust assessment processes.

FuturePlus welcomes this shift because greater transparency benefits everyone.

To support businesses operating in Europe, FuturePlus is strengthening the governance behind its IMPACT CERTIFIED sustainability label to align with the requirements of the Empowering Consumers for the Green Transition Directive. Through independent third-party auditing, transparent governance and robust certification processes, the IMPACT CERTIFIED sustainability label is being developed to provide businesses across sectors with a credible way to communicate their sustainability performance with confidence.

As expectations continue to evolve, our aim is simple: to help businesses demonstrate meaningful progress through a sustainability label that they, and their customers, can trust.

What about the Green Claims Directive?

The proposed Green Claims Directive attracted significant attention because it would have introduced much more detailed requirements for substantiating environmental claims, including proposals for independent verification before claims could be published.

However, its future is currently uncertain. As of July 2026, the Directive has not been adopted, and negotiations remain stalled. While discussions may continue, there is currently no confirmed timeline for implementation.

That doesn’t mean businesses should wait. The Empowering Consumers Directive already raises expectations around sustainability communication. Organisations that invest now in robust governance, reliable data and transparent reporting will be well placed to adapt, whatever shape future regulation takes.

Turning regulation into an opportunity

It’s easy to see new legislation as another compliance challenge.

We see it differently. Every business is built on trust. Customers trust businesses to deliver on their promises, and increasingly, they expect sustainability claims to be just as authentic as every other part of that relationship.

These new rules also have real commercial implications.

Businesses that fail to comply may face investigations by national consumer protection authorities, be required to withdraw or amend misleading sustainability claims, and, in serious cases, could face significant financial penalties under national consumer protection laws.

But perhaps the greatest risk is losing the trust of customers, investors and partners at a time when transparency is a competitive advantage.

This legislation creates an opportunity for businesses that are already committed to doing the right thing. Those that can demonstrate measurable progress, not just promises, will be better positioned to build trust with customers, investors, corporate buyers and employees alike.

FuturePlus helps businesses turn sustainability into a measurable business advantage. As an impact management platform, FuturePlus brings together sustainability data, evidence and improvement actions in one place. It enables organisations to measure impact, prioritise improvements, track progress and communicate achievements with confidence.

For businesses that achieve IMPACT CERTIFIED status, the independently-governed sustainability label is designed to align with the evolving expectations of the European market, helping organisations communicate their sustainability performance with clarity and credibility.

Today, more than 300 organisations across multiple sectors, from hospitality and retail to charities and professional services, use FuturePlus to measure, manage and improve their impact.

Looking ahead

The days of vague sustainability claims and self-awarded green badges are coming to an end. But that’s good news.

Clear evidence, transparent reporting and continuous improvement not only support compliance but also build confidence.

At FuturePlus, we believe the businesses that embrace this shift will be building stronger businesses, earning greater trust and creating a positive impact that lasts.

Book a discovery call, here.

Disclaimer: This article is intended for general information only and should not be considered legal advice. The regulatory landscape continues to evolve, and organisations should seek independent legal advice on how EU sustainability legislation applies to their specific circumstances.