The EmpCo Directive and the 2026 Amendment to the Unfair Competition Act: What the New Rules Mean for Sustainability Labels and Where We Impact Stands
Update as of July 7, 2026: The interpretation of the new UWG requirements for sustainability labels is becoming clearer. In June 2026, the German Accreditation Body (DAkkS) issued its first public statement on the classification of private labels. To obtain formal confirmation of the We Impact label’s compliance, we are currently seeking program accreditation from DAkkS. You can find the current status and our recommendations for certified companies in our FAQ. The following article was published in May 2026 and has been updated in certain sections.
On January 30, 2026, the Federal Council adopted the Third Amendment to the Unfair Competition Act (UWG). This transposes the Empowering Consumers Directive (EU) 2024/825 into German law. The law will take full effect on September 27, 2026, and significantly alters the legal framework for environmental and climate claims.
What's changing
General, unsubstantiated environmental claims will be considered misleading in the future. Sustainability labels will only be permitted in communications with consumers if they are based on a robust certification system involving independent third-party verification or if they are established by government agencies. The background to this is a specific problem: There are approximately 230 different sustainability labels in the EU. It is virtually impossible for consumers to tell which of these are based on independent verification and which are simply self-declarations by the company (Antony et al., Öko-Institut/UBA, Texts 27/2025). The new regulation draws a clear line here.
What this means for businesses
Anyone operating a certification program should verify that it meets legal requirements. Four factors are crucial: The program must be open to all without discrimination; it must have been developed in consultation with experts and stakeholders; it must include a procedure for revoking certification in the event of violations; and it must be based on an independent audit conducted by qualified, independent third parties in accordance with established standards.
Where We Impact is located
In our assessment, We Impact Level 2 meets these four criteria. The audit is conducted exclusively by state-certified environmental auditors, whose independence and expertise are enshrined in law by the Environmental Audit Act (UAG), the UAG Expertise Guidelines, Section 289c of the German Commercial Code (HGB), and the EMAS Regulation. The certification standard, requirements, and fee schedule are publicly available. The requirements were developed with the participation of the Federal Ministry for the Environment and an independent strategic advisory board and are continuously adapted to regulatory developments.
For Level 1, we are following the formal process: We are currently seeking program accreditation for the We Impact System from the German Accreditation Body (DAkkS), which is the standardized procedure for certification programs.
What this means for your use of the seal starting September 27, 2026, depends on whether your communications are directed at consumers or business partners. You can find our recommendations on this topic in our FAQ; we will also notify all certified companies directly. The amendment to the Unfair Competition Act specifically strengthens independently audited systems against unverifiable environmental claims. It therefore presents an opportunity for credible sustainability communication.
The We Impact office’s detailed assessment of how We Impact Level 2 fits within the amended UWG is available for download in the FAQ section.
Do you have questions about how to use your We Impact seal? Contact us at: info@we-impact.de
Stuttgart, May 2026, updated on July 7, 2026
