Starting September 27, the European Union will implement the Empowering Consumers for the Green Transition Directive (EmpCo), a major regulatory shift targeting misleading marketing. This new law requires fashion brands to back up any environmental or social claims with verified, third-party evidence.
The end of "sustainable" and "planet-friendly" labels in the EU
The era of using vague buzzwords to signal environmental consciousness is coming to a close. Under the new EmpCo regulations, terms such as "green," "sustainable," and "planet-friendly" can no longer be used unless they are supported by specific, proven data. As the report notes, this move follows years of scrutiny regarding how brands communicate their impact, including a Changing Markets Foundation investigation that found H&M's "sustainable" collections lacked clear criteria or evidence.
Unlike previous regulations that were applied inconsistently by individual EU member states, EmpCo provides a unified framework for all brands selling within the European market. this applies regardless of a company's size, meaning a massive global retailer must follow the same strict verification rules as a small,independent boutique. The goal is to move away from imagery and implicit claims that suggest a product is better for the earth without providing the receipts.
Why 66% of supply chain risks are social, not just environmental
The new EU rules extend their reach far beyond carbon footprints and recycled fabrics to include the human element of fashion. Alexandra Mihailescu Chicon, the global head of market development at RepRisk, points out that the directive covers misleading claims regarding the social characteristics of businesses. This is a critical distinction for the fashion induustry, where transparency is often lacking.
According to research from RepRisk, nearly two-thirds of supply chain risk incidents are actually linked to social issues, such as forced labor, human rights abuses, and poor working conditions. by including these social metrics under the EmpCo umbrella, the EU is forcing brands to ensure that their "ethical" labels reflect the actual treatment of workers throughout their entire production line, not just their environmental performance.
The threat of "greenhushing" and the readiness of certifiers
While the directive aims to increase transparency, some industry experts worry it might trigger a phenomenon known as "greenhushing." This occurs when brands become so afraid of legal repercussions that they stop communicating about their genuine sustainability efforts altogether. Aleksandra Czajka, a specialist at Global Standards, warns that the most constructive response should be more precise communication rather than total silence.
Several critical questions remain as the September deadline approaches. it is still unclear if third-party certification bodies are prepared to handle the massive surge in demand for verified labels, or how much effort it will ultimately take to rebuild the consumer trust that has been eroded by years of vague marketing. Furthermore, the report suggests that the success of EmpCo will depend on whether brands can align their actual supply chain practices with their marketing, rather than treating compliance as a simple PR exercise.
Can brands bridge the 41% gap in consumer carbon literacy?
Even with better data, brands face the challenge of communicating complex information to a public that may not fully grasp it. Data from VML’s 2026 Future Shopper report indicates a significant gap in understandiing: while 48% of shoppers appreciate seeing carbon footprint information, 41% admit they do not fully understand what those numbers actually mean. This creates a risk that even "honest" data might be ignored or misinterpreted by the average shopper.
Some brands are already attempting to bypass this confusion through radical transparency.. The sneaker brand Veja, for example, avoids traditional marketing in favor of detailed breakdowns of material compositions and deep dives into their supply chain partners.. Co-founder François-Ghislain Morillion suggests that while the truth can be complicated, it is better to bet on the intelligence of the consumer rather than simplifying the story to the point of inaccuracy.
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