Posted Tuesday 11th November 2025
On 27th September 2026, the European Union’s Empowering Consumers for the Green Transition Directive (ECGT) will come into force, significantly changing protection laws for any company looking to sell products in the European Union. Even UK companies not selling in the EU may be affected indirectly, depending on how UK regulators enforce the Digital Markets, Competition and Consumers Act 2024 (DMCC).
The ECGT introduces new standards for companies, to tackle unsubstantiated environmental claims and greenwashing, helping consumers make informed decisions on purchasing products with enhanced consumer rights. The goal of these new standards is to level the playing field, helping consumers make fair and informed decisions when deciding to choose environmentally friendly products.
This article explains the key legal changes that the ECGT introduces and the implications for B Corps.
The ECGT amends two existing EU Directives: the Consumer Rights Directive (CRD), and the Unfair Commercial Practices Directive (UCPD).
UK businesses operating outside the EU will not be directly affected by the ECGT’s changes, because they are governed by the DMCC, which does not specifically reference environmental claims and greenwashing. This omission exists because Parliament considered the UK’s existing legislation sufficient to protect consumers from greenwashing.
However, UK regulators, such as the Competition and Markets Authority (CMA) and the Advertising Standards Agency (ASA), may align their enforcement of the DMCC with the EU’s enforcement of the ECGT. Therefore, although not specifically captured by the ECGT, UK businesses operating outside of the EU should still take note of the changes that the ECGT brings to ensure that they comply with UK regulators. B Corp is also aligning its new standards to the ECGT, more information about which is below.
The ECGT requires businesses to provide clear, upfront information to consumers at the point of purchase. Key requirements include:
The UCPD currently bans ‘unfair’ commercial practices and the ECGT will supplement this list with new measures to target greenwashing. Unfair practices now include:
The changes to consumer rights are widespread. Companies will need to make their claims about the environment more specific; claims of carbon offsetting will still be encouraged, but they will take place within a more honest dialogue. The ECGT, therefore, will strengthen the bond of trust between companies and their consumers.
Likewise, there will be more legitimacy and clout behind a company using labels such as B Corp.
A significant impact of the ECGT is its new rules on the use of sustainability labels. These labels include any voluntary trust mark or quality mark promoting a product, process or business by reference to its environmental or social characteristics, or both. This excludes any mandatory label required under Union or national law. The B Corp standards emphasise Climate Action, Environmental Stewardship and Circularity, and Justice, Equity, Diversity and Inclusion (JEDI). The B Corp logo qualifies as a sustainability label, meaning that using it without meeting the ECGT’s requirements could be considered an “unfair commercial practice” under EU law.
The ECGT states that a trader’s usage of a sustainability label, such as the B Corp logo must be monitored by an ‘objective procedure’ which is ‘carried out by a third party whose competence and independence … are based on international, European Union, or national standards and procedures’.
B Corp’s current certification process designed around Version 1.6 (V1.6) of their standards, is not technically compliant with these new rules as introduced by ECGT as B Corp currently uses its own standards setter, B Lab to verify and assess all applications made but new and re-certifying B Corps rather than a third party. However, B Lab has implemented its new standards which are effective from April 2025.
B Lab has updated its guidance for companies wishing to use the B Corp logo beyond 26th September 2026. They have stated that their Version 2.1 (V2.1) standards and certification model will meet the ECGT’s requirements for being a valid sustainability label within the EU. This will be achieved through a new third-party verification system using accredited providers, with capacity in place to verify all affected companies before the ECGT takes effect.
According to B Lab, adopting the new V2.1 standards, ensures ECGT compliance and strengthens credibility. B Lab states:
‘The new B Corp Certification claims and updated brand guidelines enable companies to prove their sustainability commitments and practices. Under the B Lab Standards V2.1, certification meets the legal requirements for being a valid sustainability label in the EU. New brand resources include an extensive, pre-approved messaging library backed by proof points, tested with consumers, reviewed by B Lab experts, and rooted in our standards.’
In order to allow companies to remain updated with their communications, B Lab has advised that companies who believe that they could be impacted by ECGT (which includes companies that trade within the EU, even if they are based elsewhere) opt in to their ECGT section within their website: <https://app.bcorporation.net/>.
B Lab also recommends that companies should begin their own self-assessment process in January 2026 to identify potential gaps and enable collaboration with their third-party providers so that verification on the new B Corp standards can be completed in time.
Finally, B Lab has released new logo usage rules and brand guidelines for January 2026. The main change is that all B Corp logos will require the attachment of a hyperlink to bcorp.com, such that consumers can find the company on the B Corp directory and learn about its certification process. More information can be found using the logo guidelines link below.
B Corps have two options to ensure their ability to continue to use the B Corp logo in the EU after September 2026 and the coming into force of the ECGT:
The company would also need to adopt B Corp’s new logo and claims guidelines (which are ECGT compliant and are designed to make B Corp’s credibility more robust – see below) by September 2026. The deadline for signing this updated agreement is 31st August 2026.
Companies wishing to remain with V1.6 that believe they may be affected by the ECGT should take independent legal advice, because the agreement requires them to sign a waiver of any right to legal action against B Corp regarding ECGT-related challenges to their use of the B Corp logo as an invalid sustainability logo.
It is crucial that affected B Corps choose to take one of these courses of action – either adopting V2.1 or staying with V1.6 and signing an updated agreement. If not, they will lose their right to use the B Corp logo and to refer to themselves as Certified B Corporations.
The EU’s new rules are set to be enforced from the 27th September 2026. This means that businesses have less than a year to become compliant. Companies looking to continue to sell their products in the EU should:
The ECGT on empowering consumers for the green transition introduces strict new obligations for companies that market themselves as environmentally friendly or socially responsible. These rules have significant consequences for Certified B Corporations that use the B Corp logo on packaging or products sold in Europe.
Joelson LLP provides specialist advice on advertising and consumer law for B Corps and other impact business and would be happy to advise specifically on the impacts of the ECGT. If you would like to know more, please get in touch.
B Impact login to opt in as impacted by the ECGT: https://app.bcorporation.net/;
B Lab update on the ECGT Directive: B Lab Standards & EU Empowering Consumers for the Green Transition (ECGT) Directive;
B Corp logo guidelines: Shared Folder – B Corporation – Powered by Image Relay.
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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