Handling offsetting-based claims after EmpCo
Annex I point 4c bans offset-backed neutrality claims at product level. Replace them with a three-layer architecture: value-chain reductions, contribution claims, and EmpCo-compliant future commitments.
Annex I point 4c bans offset-backed neutrality claims at product level. The fix is a three-layer architecture: value-chain reductions claimed on product, contribution claims communicated separately, and future commitments governed by Article 6(2)(d).
The exact perimeter of the ban
Annex I point 4c prohibits claims that a product has a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions when based on offsetting GHG emissions. The ban is at product level. It does not prohibit buying credits; it does not prohibit corporate-level reporting of inset and offset activities. It prohibits attaching offsets to a product and calling the product neutral.
A defensible three-layer architecture
- Layer 1 — Value-chain reductions, claimed at product level. "Manufactured with 100% renewable electricity in our Belgian plant, verified by [body]." "Absolute Scope 1 and 2 emissions reduced 38% from 2019 baseline, third-party assured."
- Layer 2 — Contribution claims, communicated separately. "In 2025 we invested in [X] verified carbon credits supporting [project, geography, standard]. This is additional to our reduction targets and does not make our products carbon neutral."
- Layer 3 — Future commitments under Article 6(2)(d). Net-zero or net-negative ambitions expressed only with a published, time-bound, independently verified implementation plan accessible to consumers.
Words to retire from product copy
Recital 12 names the banned vocabulary at product level when based on offsetting: "climate neutral", "CO₂ neutral certified", "carbon positive", "climate net zero", "climate compensated", "reduced climate impact", "limited CO₂ footprint". National enforcers have already applied these — the German BGH on "klimaneutral", the Italian AGCM on offsetting framings (the €8 million GLS fine in January 2025), and Frankfurt prosecutors on DWS.
Migration steps
- Inventory every product-level neutrality claim across markets and channels.
- Classify each by underlying mechanism (offset, value-chain reduction, mixed).
- Rewrite offset-backed product claims into Layer 2 contribution language.
- Rebuild Layer 3 future commitments around the published-plan-and-verifier model.
- Retrain marketing, agencies and product teams.
- Update CMS rules to block Recital 12 terminology.
Citations: Directive (EU) 2024/825 Annex I point 4c; Recital 12; BGH I ZR 98/23 (June 2024); AGCM v GLS (Jan 2025); Frankfurt StA v DWS (April 2025).