Terms such as “climate-neutral,” “environmentally friendly,” and “sustainable” have long since become key selling points. However, it is not always clear what such claims actually mean.

New rules are intended to change that and ensure that environmental advertising becomes more understandable, verifiable, and credible in the future.

Since September 27, 2026, stricter requirements for environmental and sustainability claims have been in effect in Austria. These requirements are based on the European EmpCo Directive, which was implemented in Austria through, among other measures, amendments to the Federal Act Against Unfair Competition.

General terms are no longer sufficient

General terms such as “green,” “ecological,” or “environmentally friendly” should not be used lightly without a verifiable basis.

When making general environmental claims, companies must be able to demonstrate recognized excellence in environmental performance. What matters here is not just a single component of a product, but also the overall impression conveyed by advertising, packaging, or presentation.

Even colors, images, or symbols can play a role. A green leaf, a drop of water, or a design with a strong connection to nature can also be perceived as an environmental statement under certain circumstances.

"Climate-neutral" is becoming much more difficult

Statements regarding climate neutrality are particularly affected.

A product may not be advertised as “climate-neutral,” “CO₂-neutral,” or using similar terms if this claim is based solely on the fact that emissions outside the company’s own value chain are offset through CO₂ credits or other offset measures.

The reason for this is that consumers might get the impression that the product itself produces no emissions or significantly fewer emissions.

Companies may continue to provide information about climate protection projects or investments in carbon offsets. However, the presentation must not give the impression that this makes the product itself emission-free.

Greater Clarity on Sustainability Labels

Environmental and sustainability labels are also subject to stricter regulations.

In recent years, a wide variety of such labels have emerged. Some are based on independent testing, while others were developed by the companies themselves.

In the future, sustainability labels may generally be used only if they are based on a certification system or have been established by a government agency. This is intended to significantly restrict the use of self-created labels that lack such a basis.

This should make it easier for consumers to determine whether an eco-label is actually based on defined criteria and a transparent testing process.

Promises about the future must also be reliable

Many companies set goals such as “climate neutral by 2040” or “net zero by 2050.”

Such statements are, in principle, possible. However, they must not consist solely of a general declaration of intent.

Environmental claims regarding future performance must be based on clear, objective, and verifiable commitments. These include measurable goals, a transparent implementation plan, and regular reviews by independent experts.

This turns a promise for the future into a more verifiable commitment.

An Opportunity for Credible Companies

The new rules do not mean that companies are no longer allowed to talk about sustainability.

Those who conserve energy, reduce emissions, design products to be more durable or repairable, or increase the reuse of materials can continue to communicate these achievements.

What matters most is how specific and clear a statement is.

For companies that already document and transparently report their environmental performance, this can actually be an advantage. They don’t have to compete as much with rivals who communicate sustainability primarily through buzzwords or self-created labels.

Sustainability Requires Credibility

Greenwashing doesn't just affect individual purchasing decisions. When nearly every product can be labeled as "green," "sustainable," or "climate-neutral," such terms lose their meaning.

This also harms companies that are actually investing in climate protection, the circular economy, or more sustainable production methods.

The new rules do not yet create a sustainable economy. However, they do change the conditions under which the topic can be discussed.

When environmental promises become more transparent and verifiable, concrete progress will once again carry more weight than a "green" label.