The EU will enforce the Empowering Consumers for the Green Transition (EmpCo) Directive from late September 2026 to curb greenwashing, requiring substantiated environmental claims across packaging, marketing, and product data.

The directive bans vague terms such as eco-friendly, green, sustainable, responsible, carbon neutral, or climate friendly unless supported by credible evidence and data.

Governance-wide accountability is emphasized, with leadership across directors, executives, marketing, procurement, and compliance responsible for ensuring all public claims withstand regulatory scrutiny.

Sustainability plans and future commitments like Net Zero or Carbon Neutral targets must be verifiable, with clear implementation steps and measurable milestones rather than aspirational statements.

Sri Lankan exporters will need to monitor carbon footprints, invest in certifications, review packaging, and consider QR-coded labels to ensure transparency across the supply chain.

Key sectors affected include clothing, tea, spices, rubber, and seafood, with a focus on avoiding unverified eco claims and aligning packaging with European buyers’ requirements.

Exporters should start compliance preparations now to protect market access, map supply chains, pursue sustainability certifications, and meet stricter transparency demanded by EU buyers.

Develop evidence-based claims, implementation plans, and measurable milestones, alongside monitoring systems for ongoing environmental commitments.

Penalties for non-compliance can reach up to four percent of annual turnover in the relevant EU market, plus regulatory and reputational damages.

Xiaomi opened a Store powered by Abans at One Galle Face Mall and launched the Xiaomi 17T, showcasing the brand’s ecosystem and in-person experiences in Sri Lanka.

Xiaomi Sri Lanka’s leadership highlighted the dual milestone of product launch and flagship store opening, underscoring Leica imaging, performance, battery life, and enhanced customer engagement.

Reputational risk is a critical concern, potentially more damaging than fines, as loss of buyer trust and consumer confidence can jeopardize export markets.