By Ryan Honeyman, Partner at LIFT Economy
Disclaimer: I am not a lawyer. This article is not legal advice. It’s a summary of information released on 10/1/2025 by B Lab and other sources I have pulled together. If you think ECGT may apply to your company, please consult your own legal counsel.
What is ECGT? The Empowering Consumers for the Green Transition Directive (ECGT — Directive 825/2024/EU) is new EU legislation designed to prevent greenwashing and help consumers make informed choices about sustainability. It does this by banning vague or misleading environmental claims, tightening rules around sustainability labels, and requiring more credible third-party verification.
Like data privacy laws (think GDPR), ECGT applies based on where consumers are located — not where your company is based. That means any B Corp marketing to EU consumers could be in scope, whether or not you have an EU office.
ECGT will be enforced starting September 27, 2026.
Why B Corps Should Pay Attention: B Lab has been preparing for this moment for a long time. Under the new B Lab Standards (version 2.1) and certification model:
B Corp certification will qualify as a valid sustainability label under EU law.
Third-party verification will be provided by ISO 17021–1 accredited providers.
Companies certified on v2.1 will be able to confidently communicate their B Corp status in the EU without running afoul of ECGT rules.
In short: transitioning to the new standards is the simplest way for B Corps to meet ECGT requirements and reduce risk. More details just released by B Lab here.
Step 1: Self-Identify. B Lab is asking all B Corps to log into the B Impact platform and self-identify whether ECGT impacts your company. This is due by October 31.
To do this:
Log in to B Impact.
Go to Manage Account.
Select Company and look for the “Regulatory Information” section.
Under “EU Empowering Consumers for the Green Transition (ECGT),” click Add and complete the form.
Even if B Lab prompts you, the responsibility lies with your company to determine applicability. If unsure, consult your legal advisors.
A Simple Logic Test for ECGT Applicability. This test is based on the EU’s Unfair Commercial Practices Directive (UCPD), which ECGT amends. Under the UCPD, what matters is whether your commercial practices are directed at EU consumers and whether you make environmental claims.
Step 1: Do you target EU consumers? You’re “targeting” the EU market if you:
Ship products to the EU or offer EU shipping options.
Price in euros or use EU-specific payment systems.
Translate your site into EU languages or use EU-specific domain names (e.g., .fr, .de, .eu).
Run online ads targeted at EU geographies.
Sell through EU-based distributors, resellers, or online marketplaces (e.g., Amazon EU, Zalando).
Have EU retail partners or brick-and-mortar availability.
Step 2: Do you make environmental or sustainability claims? These include:
General terms like “green,” “eco-friendly,” “sustainable,” “climate positive,” or “planet safe.”
Claims of “carbon neutrality” or “net zero” (especially if based on offsets).
Durability or recyclability claims (e.g., “biodegradable,” “100% recyclable packaging,” “lasts twice as long”).
Use of sustainability labels or logos (unless they come from a recognized certification scheme).
If you answer yes to both, ECGT likely applies to your company. Even if it seems clear that ECGT applies, it is still critical to consult your own legal counsel before making a final determination.
What to Do if ECGT Applies
Recertify on v2.1 standards before September 2026. This ensures your B Corp certification is recognized as valid under EU law.
Complete the Self-Assessment in B Impact. This helps you identify and close gaps early.
Prepare to adopt the new B Corp logo use and claims guidelines by September 2026.
Submit for recertification as soon as possible after January 1, 2026. This sounds bananas but its true. Because ECGT takes effect in September 2026, this means B Corps that need to recertify only have a few months to complete the process. Acting early is essential to avoid bottlenecks and reduce compliance risk.
Why This Matters. ECGT introduces penalties of up to 4% of turnover for non-compliance in the EU. Beyond fines, the bigger risk is reputational damage if your sustainability claims are challenged.
By certifying (or recertifying) on B Lab’s new standards, B Corps can:
Avoid the risk of being accused of greenwashing.
Use a trusted, third-party-verified sustainability label.
Strengthen credibility with consumers and investors.
Final Thought. ECGT is another reminder that sustainability communication needs to be precise, substantiated, and credible. For B Corps, the good news is that the path to compliance is clear: adopt the new B Lab Standards (v2.1), use the updated claims and brand guidelines, and stay ahead of the 2026 deadline.
This isn’t the final word — laws are still being transposed at the member-state level, and details may evolve. But now is the time for B Corps to self-identify, prepare for recertification, and start internal conversations.
If your company needs support navigating ECGT readiness and the new B Lab standards, you can reach out to LIFT Economy. We are actively helping B Corps prepare for these changes and can guide you through the process.
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