What exactly does the new “EmpCo Directive” regulate regarding communication about the environmental aspects of products or services?

Dr. Markus Hiebel: The EmpCo is intended to protect consumers from unfair practices and promote better information on environmental transition. Among other things, it regulates aspects related to circularity (durability, reparability, or recyclability) and social product characteristics along the value chain (working conditions, equal treatment, equal opportunities, etc.).

What exactly does the directive mean for businesses and for consumers?

Dr. Markus Hiebel: It is important to note that this applies to end consumers (B2C) and not to business-to-business (B2B) transactions. Nevertheless, accurate communication is essential for B2B as well. For consumers, the EmpCo is a major benefit: They can make purchasing decisions based on reliable information. Irrelevant information (such as “gluten-free water”) is set to disappear. Sustainability labels must be based on a certification system that is audited by independent third parties. General claims such as “environmentally friendly,” “environmentally sustainable,” “energy-efficient,” and “bio-based” should be prohibited if environmental performance cannot be verified. Communication in this area should be more specific.

How can or should companies substantiate their environmental and sustainability claims?

Dr. Markus Hiebel: If a company makes claims about product features, it must be able to substantiate them. In the area of Transformation to the Circular Economy, we can provide companies with comprehensive support from design through recycling, with a focus on plastics. Standardized life cycle assessments (LCA) in accordance with ISO 14040/14044 or Environmental Product Declarations (EPDs), for example, are suitable for demonstrating environmental benefits. We act as a neutral and independent partner, preparing such assessments on behalf of clients, supporting companies in their independent implementation, or accompanying the assessment process with the implementation of critical reviews. In doing so, we always consider the entire product life cycle and the stakeholders affected both directly and indirectly. Through stakeholder dialogues and by incorporating the end-customer perspective, Fraunhofer UMSICHT supports companies in adapting their products and services in a way that resolves conflicting objectives and enables compatible product innovations.

Does sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) also fall within the scope of “EmpCo”?

Dr. Markus Hiebel: The EmpCo is not a standalone reporting tool like the CSRD. It is a normative framework for communication with customers. Sustainability reporting under the CSRD has many target audiences and can supplement the EmpCo with additional information, such as a clear transition plan toward climate neutrality.

The materiality analysis under the CSRD can serve as a point of intersection. This analysis identifies the relevant environmental, social and governance (ESG) aspects in the value chain that the company is required to report on. Communication efforts can build on this, especially if the company is a pioneer in this area.