B Lab Standards & EU Empowering Consumers for the Green Transition (ECGT) Directive

• What is ECGT and who’s impacted?
• What’s the first step?
• You’ve self-identified as ECGT-impacted. What next?
• What are the benefits of recertifying under V2.1?
• B Lab Standards & B Corp Certification in the context of ECGT
• What if I can’t recertify on V2.1 by September 27th, 2026?
• What if I don’t respond or act by September 2026?

What is ECGT and who’s impacted?

The Empowering Consumers for the Green Transition (ECGT - Directive 825/2024/EU) Directive seeks to enable consumers in the European Union (EU) to make informed purchasing decisions that contribute to more sustainable consumption practices – a goal that B Lab shares. 

• B Lab has been actively preparing for and shaping legislation like ECGT for years, building awareness and relationships in Brussels.

• Our policy team has engaged with legislators, certification peers, legal, and assurance specialists to understand how this directive impacts us and develop our approach to meeting its requirements.

B Corp certification, under the new B Lab Standards and certification model, will meet the legal requirements for being a valid sustainability label in the EU.

• Our new third-party verification system will use ISO 17021-1 accredited providers. 

• Companies certified under V2.1 will have full confidence and compliance in communicating their B Corp status.

ECGT applies to companies that engage in business-to-consumer (B2C) communications in the European Union (EU).

• Like data privacy or other consumer protection laws, companies can be impacted regardless of their own geographic locations.

• This is why we are asking all B Corps to self-identify whether or not ECGT impacts your company.

• If you are unsure, we recommend that companies consult their own legal advisors.

We are closely following the ongoing development of the implementation process for ECGT into national laws by EU Member States.

• Like many experts and the B Corps in our community, we are proceeding based on an informed understanding while simultaneously following new developments.

• We empathize with the challenges B Corps face in responding to legislation that is still evolving. We are monitoring the process and will keep the community informed of any changes in our position or approach.

What’s the first step?

The first step is to self-identify, telling us whether or not your company is impacted by ECGT:

1. Log in to B Impact:

2. Navigate to the ‘Company → Regulatory Information section

3. In the ‘EU Empowering Consumers for the Green Transition (ECGT)’ click ‘Add’ to complete the opt-in, telling us whether or not your company is impacted by ECGT

Note:

• We may contact you based on your reported operating locations (EU) to direct you to the self-identification feature on B Impact, but you are responsible for determining whether ECGT applies to your company.

• If you are unsure, we recommend consulting your own legal advisors.

• We recommend completing these steps by October 31.

You’ve self-identified as ECGT-impacted. What next?

We strongly recommend that you recertify on the new B Lab Standards (version 2.1) before September 2026. 

• After you self-identify as ECGT impacted, B Lab will follow up in the coming months with targeted communications, including deadlines and steps to complete your recertification.

• We are planning now to ensure that our new third-party providers have capacity to complete verification for all impacted companies before the ECGT effective date: September 27, 2026.

Complete the Self-Assessment, available now in B Impact.

• This will expedite the certification process, when it begins in 2026. 

• The self-assement enables you to start identifying any gaps you may have and working towards closing them to meet the new standards (V2.1).

Submit for recertification as soon as possible after January 1, 2026.

• This will enable you to work with our third-party provider to complete verification by September 2026, including signing a new B Corp agreement.

Adopt new logo use and claims guidelines, in compliance with the new brand book, by September 2026.

• Long-lead guidance for materials that will remain in-market in September 2026 is available here for advance planning.

• Complete updated brand guidelines will be shared in January 2026.

What are the benefits of recertifying under V2.1?

Overview

For any company marketing products or services to consumers in the EU, a credible, third-party certification is no longer just a good choice—it is a legal requirement for using a sustainability label.

B Lab Standards & B Corp Certification in the context of ECGT

B Lab’s new third-party certification model under version 2.1 (V2.1) of the standards provides companies of all sizes with a streamlined way to comply with the ECGT Directive. This certification model strengthens impact credibility and meets the legal requirements for being a valid sustainability label in the EU. B Corps can safely communicate their impact and sustainability efforts through certification, thus safeguarding their reputation and credibility while reducing financial and legal risk.

• Transitioning to the new standards simplifies the path to ECGT compliance. B Lab is creating certification pathways that will enable ECGT-affected companies to be certified on the B Lab Standards V2.1 and certification model by September 2026. Your prior work on impact management has prepared you for this transition. The new standards provide a clear, streamlined path to ECGT compliance. Third-party verification under the new certification process is expected to provide companies with a reliable way to meet ECGT deadlines.

• Substantiated claims and greenwashing risk reduction. The EU directive aims to prohibit misleading practices, such as greenwashing and non-transparent sustainability labels. By transitioning, you gain a new layer of credibility and powerful resources to avoid greenwashing, ensuring your messaging is not only authentic but also substantiated, simplifying the work for you. The new B Corp Certification claims and updated brand guidelines enable companies to prove their sustainability commitments and practices. Under the B Lab Standards V2.1, certification meets the legal requirements for being a valid sustainability label in the EU. New brand resources include an extensive, pre-approved messaging library backed by proof points, tested with consumers, reviewed by B Lab experts, and rooted in our standards. Many of these new claims can only be used by companies verified on V2.1.

• Credible, third-party-verified certification. B Lab’s new certification model will comply with the ECGT Directive, effective September 2026. This means that by certifying under V2.1, you can publicly communicate your certification in the EU. The B Corp logo signals that you uphold social, environmental, and governance standards laid out by B Lab and verified by an independent third party meeting B Lab certification requirements for assurance providers based on ISO 17021-1. For this reason, V2.1 of the standards represents a clear step towards credibility.

• A step to avoid fines and brand damage. The B Lab Standards V2.1, and our approved B Corp claims and brand guidelines, comply with ECGT. By transitioning to the new standards, you are reducing your company’s financial risk and the significant brand damage that comes from non-compliance. Failure to transition and communicate your status under the new standards could expose your company to legal and financial risk. While this is a worst-case scenario, the fines for non-compliance under the ECGT directive can be up to 4% of a company’s annual turnover. One way to mitigate this risk is to begin your transition to the new V2.1 standards now.

What if I can’t recertify on V2.1 by September 27th, 2026?

If your concern is about B Lab’s readiness, we are planning now to ensure that our new third-party providers have capacity to complete verification for all impacted companies that choose to recertify in 2026.

• This is our recommended approach. [See What to do if you are ECGT impacted]

Still, if your company identifies significant gaps in your ability to meet the new B Lab Standards (V2.1) in 2026, you may choose an alternative option.

Starting in January 2026, B Corps can choose to sign an updated agreement that commits to future certification on V2.1 and protects the B Corp movement. 

Companies that choose this alternative will:

• Remain a certified B Corp on version 1.6 

• Commit to complete recertification on version 2.1 by your next scheduled recertification date (three years from your previous certification)

• Adopt new logo use and claims guidelines by September 2026

• Sign an amendment to your current B Corp agreement, including:

  • A liability waiver, agreeing not to take legal action against B Lab in the event of any ECGT-related challenges resulting from your choice to continue using the B Corp logo and claims prior to certifying on V2.1

  • Agreement to the terms of the updated third-party verification process

  • Acknowledgment that V2.1 and the updated certification process is an evolution of the current B Corp certification.

You must sign the updated agreement by August 31, 2026.

• B Lab will not negotiate or offer tailored individual amendments to the agreement.

What if I don’t respond or act by September 2026?

B Corps that do not sign the updated agreement or complete recertification on V2.1 by September 2026 will lose the right to use the B Corp logo or refer to themselves as Certified B Corporations.

• Companies must remove all use of the B Corp logo, trademarks, and certification claims across all current materials and channels (including packaging, marketing materials, digital platforms) by September 2026.

These companies may not engage in any public communication about their certification.

• Their profiles will be removed from the B Corp directory and B Lab will not confirm their certification if asked by journalists or other members of the public.

• Companies may participate in community events, but they cannot imply or claim certification (e.g. participating in B Corp panels, B Corp Month campaigns, etc.).

• B Lab will not refund certification fees since only companies who fail to respond to the other options will be in this situation.

If the company later completes recertification under V2.1 and signs the new B Corp agreement, they will be able to adopt the new logo guidance and claims and once more refer to themselves as a Certified B Corporation.

While strict, this measure is not intended to be punitive. 

• As a global, interdependent movement, we must protect trust in our certification and the reputation of B Corps that do comply.

• B Lab may take legal action to protect our community and trust in our brand.