Green Claims
Green claims, greenwashing and sustainability advertising: Legal requirements for companies
Advertising regarding sustainability is being increasingly regulated. It is the focus of attention from courts, competition associations and the EU legislature. Our articles highlight the increasingly stringent legal requirements relating to sustainability advertising, environmental advertising, sustainability reports and ESG communication. An emphasis is placed on the risks of greenwashing against the backdrop of the statutory framework and recent case law, as well as the legal assessment of claims such as "climate-neutral", "CO₂-neutral" and "sustainable" and environmental claims related to future environmental performance.
What do companies need to bear in mind regarding sustainability advertising?
Green claims are statements used by companies to communicate the environmental impact of a product, a service or their business activities. Sustainability claims refer to corporate communications on sustainability in general (that is to say including sustainability issues that go beyond environmental topics).
For many years, it was common practice to use general terms such as "climate-neutral", "environmentally friendly" or "sustainable" in marketing and corporate communications without any further restrictions. Because of the strong incentive to buy that sustainability claims can generate, such claims are now being scrutinised more closely. Now, anyone who fails to substantiate what exactly lies behind such claims runs the risk of enforcement proceedings being taken against them either in or out of court.
Therefore, companies should only make environmental and sustainability claims if they are clear, transparent and adequately substantiated. Particular caution must be exercised regarding sustainability labels and certifications. The specifications of the German Act against Unfair Competition (UWG), current case law and the new European requirements are crucial to this.
Green claims and sustainability advertising in the spotlight of case law and regulation
Our series of articles deals with current and future legal requirements for advertising claims relating to ESG and sustainability activities.
Courts are continually clarifying the requirements for advertising relating to the environment and sustainability. At the same time companies must prepare for the new specifications under the German Act against Unfair Competition (UWG), which will come into effect on 27 September 2026. Our series analyses the latest case law, the legal limits of "green claims" and regulatory developments at both German and European level.
Green claims under the UWG: The current legal situation in Germany
Our articles analyse the development of the legal framework before and after implementation of the EmpCo Directive comes into effect. As well as addressing the permissibility of claims such as "climate-neutral" and "CO₂-neutral", they also cover less widely discussed claims, such as "recyclable" or "bioplastic", as well as sector-specific considerations, for example in the pharmaceutical industry. Our analysis is not limited to environmental claims, but also includes pinkwashing (LGBTQIA+-related embellishing) and bluewashing (misleading statements on the social and ethical commitment of companies) in addition to greenwashing.
EmpCo Directive and Green Claims Directive: Developments at EU level
The EmpCo Directive was transposed into German law through amendments to the UWG. The new specifications under competition law will come into effect on 27 September 2026 and relate in particular to generic environmental claims, sustainability labels, claims of offsetting and claims regarding future environmental performance.
This is to be distinguished from the Green Claims Directive. The proposed directive sets out more stringent requirements regarding substantiating, communicating and independently verifying explicit environmental claims. However, the trilogue negotiations are currently on hold. It therefore remains to be seen whether the planned specifications will be adopted, and if so, in what form. Our articles cover both areas of regulation and analyse their practical implications for companies.
Advice on competition law relating to green claims and ESG communication
CMS advises companies on green claims, sustainability advertising and ESG communication. The focus is on the legal assessment of sustainability claims in legal terms, as well as on avoiding the risks of greenwashing. We support companies in assessing claims such as "environmentally friendly", "plastic-free" or "eco", in using sustainability labels, ESG audit scores, labels and certifications and in complying with the requirements of the UWG, the EmpCo Directive and other regulatory specifications. To these ends, we combine expertise in competition law with industry knowledge and practical experience gained from our advisory practice.
What to expect from our Green Claims series
Our series analyses recent case law, new regulatory specifications and sector-specific risks. The articles cover topics including climate-related claims, sustainability labels, sustainability advertising in the health sector, advertising claims relating to food and the requirements for legally compliant ESG communication.
International developments regarding greenwashing and environmental claims
As a complement to our series, CMS Green Globe provides an international overview of the regulation of green claims, sustainability advertising and greenwashing worldwide. The platform compares legal developments, court rulings and regulatory requirements across numerous jurisdictions and helps companies identify risks associated with cross-border ESG communication and environmental advertising at an early stage.
Tools and solutions related to green claims
Verifying that green claims are in compliance with the law, keeping abreast of regulatory developments and designing sustainability communications for efficiency: Our tools help you quickly assess requirements and identify risks at an early stage.
CMS Implementation Tracker for the EmpCo Directive
CMS Green Globe
Questions about green claims?
Do you want to know what requirements apply to your environmental and sustainability claims? We can help you assess the legality of green claims, implement new regulatory specifications and develop legally compliant communication strategies.
Legal experts for Green Claims
Local market knowledge. Global outlook
We provide future-facing legal advice to help your organisation thrive. Combining local market knowledge and a global perspective, and with lawyers in locations worldwide, your organisation benefits from the expertise it needs, even across borders.
About CMS