Beyond Greenwashing: The ECGT Directive As A Strategic ESG Tool

The ECGT Directive introduces a further EU framework on ESG communications aimed at mitigating greenwashing and social washing. For General Counsels, the ECGT Directive provides a challenge with respect to potential liability and litigation and reputational risks but also an opportunity to strengthen ESG governance in both B2B and B2C contexts.

Background ECGT Directive

The European Union has moved to strengthen consumer protection against greenwashing with the Empowering Consumers for the Green Transition (ECGT) Directive. This ECGT Directive, adopted in early 2024, amends the existing EU consumer law framework — in particular the Unfair Commercial Practices Directive (UCPD) – by introducing more specific rules on environmental and social claims. While the UCPD already prohibited misleading commercial practices, the ECGT Directive sharpens this framework – as of its entry into force as per 27 September 2026 – by explicitly preventing greenwashing and social