New EU Rules Against Greenwashing Pose Challenges for Companies

Since September 27, 2026, stricter requirements have been in effect for environmental claims and sustainability labels. This means companies now face higher standards for their sustainability communications.

With the implementation of the EU directive “Empowering Consumers for the Green Transition,” stricter requirements for sustainability claims made to consumers have been in effect in Germany since September 27. General terms such as “environmentally friendly,” “green,” or “climate-friendly” may no longer be used without supporting evidence. Sustainability labels are also only permitted if they are based on a certification system or have been established by government agencies.

Green Claims Under Pressure: What Matters Now

Those who have primarily used sustainability for marketing purposes so far are losing leeway. Companies that, on the other hand, are actually investing in material reduction, improved recyclability, the use of recycled materials, or other measurable improvements could benefit from the new rules. The less room there is for general sustainability promises, the more visible the difference becomes between “greenwashing” and genuine sustainability performance.

For brand-name product and packaging manufacturers, for example, this may present an opportunity: concrete and verifiable product improvements are becoming increasingly important as a differentiating factor.

What Really Convinces Consumers

A look at the consumer perspective also reveals that sustainability is not perceived solely through labels. In the latest Simon-Kucher study on sustainable product packaging (X), 49% of respondents cite minimal material use as an important distinguishing feature of sustainable packaging. Official environmental labels, by contrast, are mentioned by only 26%. The results show that specific characteristics can be more important than a label alone when it comes to the perception of sustainable packaging.

Why the New Rules Can Become a Competitive Advantage

For companies, it is now crucial not to simply replace existing green claims with new ones. What’s needed are robust statements based on verifiable improvements in products and packaging. “This is where the strategic opportunity lies: The less room there is for blanket sustainability promises, the more concrete and verifiable sustainability achievements can contribute to differentiation. Companies that can communicate such progress clearly and credibly create a better foundation for standing out from the competition,” the experts are convinced.

The new rules are thus not merely a regulatory hurdle. They can steer competition more strongly toward actual sustainability performance and give an advantage precisely to those companies that achieve verifiable progress in their products and packaging. Those who also leverage these advantages in their sales efforts can derive additional growth opportunities from them and open up the possibility of gaining market share.

About Simon-Kucher

Simon-Kucher is a global management consulting firm with more than 2,000 employees in over 30 countries. With nearly 40 years of experience in monetization and pricing, it is considered a global leader in pricing strategy and business growth.