ECGT Directive and the implications for UK businesses

A renewed focus on green claims, transparency and enforcement

In an era where sustainability credentials increasingly influence consumer choices and corporate strategy, legal certainty around environmental claims has never been more important. The EU’s Empowering Consumers for the Green Transition Directive (ECGT) aims to eliminate misleading environmental claims by introducing stricter rules on how businesses communicate sustainability information.

While the UK is not required to implement the ECGT post-Brexit, it will have direct implications for many UK businesses operating on a business-to-consumer basis in the EU markets or across European supply chains.

The ECGT directive

The ECGT amends existing EU consumer protection legislation:

• the Unfair Commercial Practices Directive, and
• the Consumer Rights Directive.

Member States must transpose the ECGT into national law by 27 March 2026, with enforcement from 27 September 2026.

Why does this matter for UK businesses?

Any UK business that sells into the EU or targets EU consumers with sustainability communications and marketing will need to comply with the Directive once implemented by Member States. This includes online retailers, manufacturers, and service providers using environmental claims in advertising, packaging, or branding.

While UK law already addresses greenwashing through the Digital Markets, Competition and Consumers Act 2024 and the CMA’s Green Claims Code, the ECGT is expected to influence future enforcement trends by UK regulators (particularly the Competition and Markets Authority and the Advertising Standards Authority) and further align UK practices with the EU’s stricter standards.

What’s changing?

Stricter Rules on Environmental Claims: Vague or generic terms such as “eco-friendly”, “green”, or “climate neutral” will be prohibited unless supported by robust, verifiable evidence. Future pledges (e.g., net zero) must be backed by publicly available implementation plans.

Sustainability Labels: A “sustainability label” is defined by the ECGT as “any voluntary trust mark, quality mark or equivalent, either public or private, that aims to set apart and promote a product, a process or a business by reference to its environmental or social characteristics, or both, and excludes any mandatory label required under EU or national law.” Such labels must be third-party verified and issued by public authorities or accredited independent bodies. Self-created or unverified labels will no longer be permitted.

Enhanced Consumer Information: Businesses will need to provide clear details on product durability, reparability, availability of spare parts, and software updates at the point of sale.

What about B Corps?

B Corp is a pre-existing and voluntary sustainability label, created by B Lab. As such, it falls within the ECGT’s definition of a sustainability label. This means B Corps must meet the Directive’s stricter requirements, including third-party verification and compliance with updated standards.

In response to the ECGT, B Lab has introduced new standards (Version 2.1) to align with the ECGT changes. V2.1 introduces third-party certification and additional requirements to ensure compliance with the ECGT.

Steps B Corps should be taking:

B Lab has presented three options in light of their new standards:

1. Self-Identification and Full Recertification: Complete a self-identification with B Lab confirming ECGT impact on the business. Businesses should then re-certify on the new B Lab standard V2.1 before September 2026.
2. Commitment to Future Recertification: Sign an updated agreement committing to recertifying under the V2.1 standards by the next recertification date and start using the new logo. Under this option, businesses remain B Corp certified under the older V1.6 standards but commit to transition to V2.1 at their next certification. In the meantime, they must adopt and use the new logo and guidelines by September 2026.
3. Discontinue Use of B Corp Logo: If a B Corp business does not plan to recertify under either option above, they must stop using the B Corp. Failure to act by September 2026 will result in the loss of the B Corp certification and right to the logo – especially if the business is business-to-consumer within the EU.

Conclusion

The ECGT Directive signals a new era of accountability in environmental marketing. For UK businesses, proactive compliance is essential. B Corps, in particular, must act promptly to align with B Lab’s updated standards and ensure continued certification. By preparing now, businesses can mitigate risk, avoid reputational damage, and position themselves as leaders in the evolving green economy.