The EU has adopted the Empowering Consumers for the Green Transition Directive (EmpCo). Its goal is to protect consumers from misleading environmental claims and sustainability labels and to give product providers more certainty when they communicate about sustainable investments. Towards Sustainability has made the necessary adjustments to ensure conformity with EmpCo before it enters into force on 27 September 2026.
EmpCo sets rules on what providers of products and services can market or present to consumers as green or sustainable. It aims to curb greenwashing, make sustainability claims more credible and give consumers more accurate information. Belgium transposed the Directive into national law on 22 July 2026.
EmpCo also applies to sustainability labels for financial products. In principle, these labels may only be used if they are based on a conform certification scheme or set up by a public body. The certification scheme must have clear, publicly available requirements and procedures, and must be checked objectively by an independent and competent third party. The independence and competence of this auditing body must be based on recognised standards.
The Directive did not require any changes to the label's organisation, which was already solid since it was established in 2019. It consists of an independent Verifier consortium (Forum Ethibel, ICHEC Brussels Management School and the University of Antwerp), an Eligibility Commission of market and ESG experts, and the Board of the Labelling Agency. However, to meet the transparency requirements, the structure and existing procedures have been further formalised and published.
This work was carried out together with the Board, the Eligibility Commission and the Verifier, and was reviewed by external legal experts. The terms of the certification scheme are available on the website, along with the identity of the Verifier and the standards it applies.
EmpCo builds credibility and trust for investors and the market. For label holders, it brings clarity: the organisational requirements are now set out in law, and a scheme that conforms with them can show how they are put into practice. However, any environmental claims a label holder makes about its products in its own communications are still subject to the rules for such claims and to the label holder's own assessment.
Transparency, clarity and independent verification are at the heart of Towards Sustainability's values. The label gives investors information that is easy to understand and assures them that labelled products meet a credible level of sustainability, implemented to a high standard.