Carbon neutral and offsetting claims
EmpCo bans product-level carbon-neutral claims that rest on bought offsets — no matter how an average consumer might interpret them.
EmpCo bans product-level "carbon neutral" claims that rest on bought offsets — no matter how an average consumer might interpret them.
The exact ban (Annex I, 4c). "Claiming, based on the offsetting of greenhouse gas emissions, that a product has a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions." Recital 12 confirms the ban captures "climate neutral", "CO2-neutral certified", "carbon positive", "climate net zero", "climate compensated", "reduced climate impact" and "limited CO2 footprint" — when these rest on offsetting.
Why. Consumers were led to believe the product itself had no environmental impact, when the impact was simply paid to be reduced somewhere else — often unverifiably. The German BGH already moved in this direction in its 27 June 2024 "Katjes" judgment.
What you can still say:
- In-value-chain reductions, with substantiation: "Since 2019 we have reduced our supply-chain emissions by 42%."
- Specific footprint disclosure: "This product's lifecycle footprint is 2.4 kg CO2e (verified LCA, methodology X)."
- Contribution-based language about external projects — without claiming neutrality: "We invest in independently verified carbon-removal projects equivalent to X tonnes CO2 outside our value chain, in addition to reducing our own emissions." Recital 12 explicitly preserves this framing.
| In-value-chain (allowed if substantiated) | External offsets (cannot underpin neutrality) |
|---|---|
| Switching factories to renewable electricity | Buying forestry / REDD+ credits |
| Redesigning products to use less material | Funding cookstove projects |
| Replacing virgin with recycled inputs | Avoided-deforestation credits |
| Electrifying delivery fleet | Generic VCS / Gold Standard tonnes |
Company-level nuance. Annex I 4c targets product-level claims. Per the Commission FAQ, corporate "we are a carbon-neutral company" claims are not automatically blacklisted — but they still need to clear amended UCPD Article 6, which in practice is a steep hurdle.
Citations: Directive (EU) 2024/825, Annex I point 4c; Recital 12; UCPD Article 6 (as amended).
Recent enforcement (2024–2025). The Amsterdam District Court ruled on 20 March 2024 that KLM's "Fly Responsibly" and CO₂ZERO offset marketing breached the UCPD. The German BGH confirmed on 27 June 2024 that "climate-neutral" requires immediate, on-pack clarification of whether neutrality is achieved through reductions or offsets. French civil proceedings against TotalEnergies over its "net-zero by 2050" messaging continue in 2025. Adidas, Lufthansa and several FMCG brands quietly retired carbon-neutral product claims in 2024 ahead of EmpCo.
Citations: Rb. Amsterdam, 20 March 2024 (KLM); BGH I ZR 98/23, 27 June 2024 (Katjes); TGI Paris, TotalEnergies proceedings, ongoing 2025.