How ECGT Regulations are transforming B Corp Certification: What SMEs need to know

To better understand what these changes mean in practice, we spoke with Lisette van der Linde, Climate & Sustainability Attorney-at-Law, and Sjoerd Lopik, Partner Regulatory & Enforcement at De Roos. Together, they shared their perspective on how the new ECGT regulations are reshaping the B Corp landscape. We’ve summarized the key takeaways from the conversation for you – read the full interview below.

Can you simply explain what the new ECGT requirements are?

The Empowering Consumers for the Green Transition Directive (ECGT) was introduced by the European Union to combat greenwashing and to ensure that sustainability claims are reliable and verifiable. In practice, this means companies may no longer rely on vague statements about their sustainability efforts without solid substantiation.

Why are these requirements important to have in place?

By introducing stricter rules and requiring certification, the ECGT helps bring clarity to the marketplace and ensures that sustainability labels provide real value to both consumers and businesses.

A key rule of the ECGT is that self-certified labels are no longer allowed. The European Union considers this essential as the market has become crowded with intransparant and sometimes unreliable sustainability labels, many of which are self-created, lack independent oversight, or apply inconsistent criteria.

For companies, the ECGT brings about some material changes. Any business using sustainability claims or labels including certifications such as B Corp and Fair Trade, will need to carefully assess compliance. Failure to do so not only exposes companies to enforcement risk but also to reputational harm.

B Corp always had a strong reputation for credibility. Why is the self-assessment model not sufficient anymore under ECGT?

The ECGT introduces a general rule for all sustainability labels, stating that the sustainability scheme owner (in this case B Lab) cannot also act as the party deciding on creditation. The concern is that when one and the same organisation manages a label, hands out certification and verifies compliance, there may be conflicting incentives at play.

Even though B Corp is known as a credible and reliable certification, the ECGT applies one consistent standard. B Corp, like other certification systems, will have to adjust its model to meet this requirement.

What are the key changes from B Corp V1.6 to V2.1 in relation to ECGT – and how do these affect SMEs' approach to certification?

B Corp has communicated that its V2.1 certification scheme will be updated in a way that is ECGT compliant. Amongst other things, this means that V2.1 compliance will be verified by an independent third party. In contrast, the V1.6 certification scheme will likely not be updated.

As a result, B Corp logo’s based on V1.6 certification likely can no longer be displayed in consumer-oriented communications (including packaging and websites) once the ECGT becomes enforcable in September 2026. Therefore, there’s a strong upside to V2.1 certification for consumer-oriented B Corps.

What is the role of the toezichthouder (supervisory authority) in this context? By who and how will things be monitored under ECGT?

Supervision under ECGT will take place at Member State level. National consumer authorities (in the Netherlands: Autoriteit Consument & Markt or ACM) are responsible for monitoring and enforcement. The ACM can investigate misleading sustainability claims, request substantiation and documentation, and impose penalties or corrective measures.

The ACM could hand out very significant fines for non-compliance. Third parties can also request ACM enforcement if they notice violations of the ECGT. The ACM is known to be active on the topic of greenwashing. Additionally, greenwashing enforcement usually attracts media attention, which may have severe consequences for a company’s reputation.

What does the transition period from version V1.6 to version V2.1 look like? Are there deadlines, “grace periods”, or conditions for companies that are already certified under V1.6?

Formally, under the ECGT, there is no grace period. This means that once the ECGT applies under national laws (from September 2026 onwards), companies that continue to operate under B Corp V1.6 without independent verification risk penalties if they use their certification in any communication towards consumers. This includes usage on packaging, social media or website outings.

What kind of legal or compliance steps can companies take during the transition period to prepare for ECGT - and to demonstrate to the supervisory authority that they are taking the new requirements seriously?

  We advise any company to do the following before September 2026:

• Ensure that all use of sustainability labels, including B Corp, Fair Trade and others, comply with the rules of the ECGT; and
• Make sure all sustainability claims (next to the displaying of the sustainability label) made in consumer communication are ECGT compliant.

If compliance cannot be achieved before September 2026, it may be advisable to pro-actively approach the ACM with a clear explanation of the company’s situation and a concrete compliance plan, including ambitious but realistic timelines. This demonstrates to the ACM that the company is acting in good faith and is committed to reaching compliance as soon as possible. In other cases where legislative requirements cannot be met, it may be more appropriate to temporarily remove the sustainability labels from packaging and other communications.