ECGT: What UK businesses need to know

ECGT stands for “Empowering Consumers for the Green Transition” and is the commonly used shorthand for Directive (EU) 2024/825. The Directive was adopted by the European Parliament and Council and entered into force on 26 March 2024 and will apply to EU organisations from 27 September 2026.

The ECGT rules are, essentially, consumer protection measures aimed at preventing misleading environmental claims and improving transparency about sustainability. They require businesses to substantiate environmental claims. They also restrict the use of unverified labels and logos that claim or imply green credentials.

ECGT rules are EU measures, not UK legislation, so they matter most where a UK business markets to EU consumers, sells into the EU, or supports EU-facing sustainability claims through packaging, websites or supply chains.

If your business is in a value chain that ends with EU consumers, it may be time to review how you describe your products, services, and sustainability benefits if you haven’t done so already.

For UK businesses, there are already legislative requirements and other strong imperatives in place requiring truth in green claims. These include:

• The Competition and Marketing Authority (CMA) Green Claims Codeexplains how businesses should make environmental claims under UK consumer law, including that claims must be truthful, clear and substantiated.
• The Digital Markets, Competition and Consumers Act 2024 (DMCCA) incorporates the UK’s unfair commercial practices regime and acts as the primary legal framework for prohibiting misleading advertising claims, including greenwashing, and grants the CMA powers to directly impose fines of up to 10% of global turnover on firms or £300,000 for individuals.
• The Advertising Standards Authority (ASA) and the Committee of Advertising Practice (CAP) regulate environmental claimsin the UK. Their reach extends to advertising claims across all media, including online and social media influencer content. A public register of ASA rulings detailing case histories exerts reputational pressure on firms and their marketing and advertising departments and partners.
• Effective as of 31 May 2024, the FCA Anti-Greenwashing Ruleapplies to financial services and investment products. It requires all authorised firms to ensure sustainability references are correct, clear, complete and comparable.

The ECGT rules are particularly relevant to B Corps because they regulate how sustainability credentials and labels are communicated. The Directive restricts the use of non-approved labels and requires claims to be clear and substantiated. As B Corp certification is a proprietary scheme, businesses must ensure it is not presented as a broad environmental claim. In practice, this means avoiding overgeneralisation and linking certification to specific, evidence-based claims. While most B Corps are aligned with the intent of the rules, greater precision in marketing and stronger internal controls may be required.

B Lab has published specific guidance for B Corp organisations potentially impacted by ECGT. Legal advice is recommended to ensure compliance. But be aware: the clock is ticking! According to B Lab:

By submitting by 15 July 2026 in good faith and actively pursuing recertification, your company can continue using the B Corp logo and making certification‑related claims while your recertification is being completed, even if the verification process is not fully finalised by 27 September 2026. However, B Lab cannot determine your company’s legal position under the ECGT Directive or guarantee that there is ‘no risk’ with EU regulators if you are not yet certified on the new standards by that date. We therefore strongly recommend consulting your own legal advisers about any remaining risk in your specific products, markets, and communications.

At Menzies, supported by our Grain Sustainability team, we work with organisations across sectors to navigate evolving ESG regulation and sustainability requirements.

Our support includes:

• ESG legislative compliance
• Carbon footprinting and emissions reduction planning
• Sustainability strategy and reporting
• Training and awareness
• B Corp certification and recertification under the new B Lab Standards