What is a carbon neutral company?
The United Nations Intergovernmental Panel on Climate Change (IPCC) defines carbon neutrality as a state in which human activities have no net impact on the climate. The international standard ISO 14068-1 specifies this further: A company's carbon footprint must first be reduced; only remaining emissions may then be "offset".
Carbon neutrality therefore never means "emission-free," but rather a net zero balance of reduction and offsetting.
Carbon neutrality under EmpCo
The term "carbon neutral company" is no longer permissible under the EU directive "Empowering Consumers for the Green Transition" (EmpCo) if it is based solely on the financing of climate protection projects.
EmpCo is an EU directive designed to protect consumers from misleading environmental claims and labels. The new regulations will become binding for all companies advertising in the EU from 27 September 2026.
Under the EmpCo directive, stricter rules apply:
- Proof of reduction required: Claims of carbon or climate neutrality are only permissible if they are based on reductions actually achieved across the entire value chain.
- Offsetting alone is not enough: Compensation through climate projects is no longer sufficient as the basis for a carbon neutrality claim.
- High bar in practice: A "carbon-neutral" claim requires a nearly emission-free business operation, which is not realistic for most companies.
Companies that continue to advertise as "carbon-neutral" without disclosing concrete proof of reductions risk warnings, injunctive claims, and reputational damage.
Carbon neutral company?
According to the EmpCo directive: Companies with Financial climate contribution or ClimatePartner certified company.
ClimatePartner introduced the labels "ClimatePartner certified" and "Financial Climate Contribution" as early as April 2023, and supplemented them with an independent third-party verification in May 2026: two EmpCo-compliant alternatives that provide transparency about a company's climate action strategy without using the claim "carbon-neutral." The "ClimatePartner certified" label additionally stands for binding reduction targets.
ClimatePartner supports companies in calculating their carbon footprint. Companies then demonstrate reduction measures and make a financial climate contribution equivalent to their ongoing emissions. An independent third-party verification confirms this pathway and enables the use of the "ClimatePartner certified" or "Financial Climate Contribution" labels.
ClimatePartner labels
EmpCo-compliant
Both labels meet the requirements of the EmpCo directive.
Sustainability label
Independent third-party verification
Both labels undergo an independent third-party verification and enable transparent communication.
Verification
Communication
You receive materials for your EmpCo-compliant customer communication.
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Your path to EmpCo-compliant communication
Calculate carbon emissions
The foundation of climate action is always your carbon footprint. It captures all emissions caused, for example, by heating, electricity, business travel, employee commuting, or paper consumption. You can easily record the data in our cloud-based software. Since 2006, we have been supporting companies from various industries with carbon accounting and are happy to assist you.
Reduce and avoid carbon emissions
From your carbon footprint, you can identify which greenhouse gas emissions you can reduce and which you can avoid in the long term. A few examples: switching to renewable electricity, video conferences instead of business travel, train instead of domestic flights.
Make a financial climate contribution
Ongoing emissions cannot be completely avoided. For these, you support climate protection projects from our portfolio, thereby making a financial climate contribution. International institutions such as the Science Based Targets Initiative, WWF, and the Intergovernmental Panel on Climate Change (IPCC) recommend: companies should not only reduce emissions within their own value chain but also invest additionally in climate projects beyond it.
Ready for EmpCo-compliant climate action communication?
Would you like to position your company with a financial climate contribution or further develop your climate strategy? We support you with a robust process for emissions calculation, reduction, and climate contributions.
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Environmental claims compliance checklist
With EU Directive 2024/825, "Empowering Consumers for the Green Transition" (EmpCo), the requirements for sustainability-related advertising are increasing significantly.
General environmental claims without clear context or robust evidence will no longer be permissible; using them in communications therefore carries considerable risk.
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