Competition
Latest

Climate-neutral advertising: Evidence, offsetting and claim scope

Climate-neutral advertising under Austrian competition law: which evidence, accounting boundaries and offsetting details businesses should review before publication.

, Mag. Bernhard Brandauer, Rechtsanwalt

“Climate neutral” sounds like a property of the entire product being advertised. In practice, the claim may rest on a limited accounting boundary, a specific period and the balancing of greenhouse gas emissions through external projects. For businesses, the scope of the message therefore determines whether the advertising accurately reflects its evidence.

Section 2 UWG remains the general test for misleading commercial practices. On 28 July 2026, Federal Law Gazette I No. 58/2026 also amended the UWG. The new definitions and prohibitions for environmental claims enter into force on 27 September 2026. Publication of this article on 9 September 2026 therefore precedes that date.

This article focuses on advertising with climate neutrality and claims based on offsetting. It explains which facts should be settled before release, how reduction and offsetting must be kept apart and which scope a claim must support after 27 September 2026.

Current framework and new rule from September 2026

Under section 2 UWG, advertising may mislead when statements are incorrect or when the overall impression hides material limits. For a climate-neutral claim, wording, imagery, logos, placement and every immediately available explanation must therefore be assessed together. A correct individual figure does not justify a broader headline.

Section 1 paragraph 5 UWG matters for evidence. In proceedings, the court may under the statutory conditions require proof that factual statements are correct. The evidence should therefore exist when the claim is approved and should cover the specific advertising that was actually used.

Federal Law Gazette I No. 58/2026 adds terms such as “environmental claim” and “general environmental claim” in section 1 paragraph 4 UWG. From 27 September 2026, item 4c of the annex covers claims to consumers that a product has neutral, reduced or positive environmental effects regarding greenhouse gas emissions when the claim is based on offsetting. Section 44 paragraph 16 UWG contains a time-limited special rule for civil claims concerning goods during the first three years.

Define the reference object and accounting boundary

The first question is what “climate neutral” refers to. It may concern one product, a product line, a site, a business or a specific event. An accounting exercise for one site does not automatically support the statement that an entire corporate group operates climate neutrally.

The accounting boundary is equally important. Does it cover only manufacturing and energy use, or also raw materials, transport, use and disposal? A statement about manufacturing communicates something different from a statement about the full life cycle. The boundary must be recognisable where the audience receives the main claim.

The reference frame also includes period, region and calculation method. A completed accounting period must not appear to be a timeless product property. For an ongoing campaign, the business should decide when data will be updated and which changes require renewed approval.

Important: Offsetting does not by itself answer how far the advertising reaches. Product, accounting boundary, period and calculation must match the visible core of the claim.
Initial orientation

Which climate-neutral advertising should be reviewed?

The short path distinguishes a planned claim, active or challenged advertising and a competitor claim. You can then send the relevant information to the firm.

Reference object, accounting boundary, offset share and evidence define the initial review.

01 Question 1

Which situation currently applies?

This path does not determine legality. It organises the claim, its reference object and evidence for an initial review.

Initial orientation

Which climate-neutral advertising should be reviewed?

01

Before release, the climate-neutral claim needs a clear reference frame.

Record product, accounting boundary, period, calculation, reduction share and offset projects. Then check whether the visible wording communicates exactly that frame.

02

For active advertising, the claim and evidence must match in time.

Preserve every version with date and channel. Keep the calculation, certificates, retirement or other offset evidence and approval documents unchanged.

03

A broad claim needs its complete advertising context for a reliable review.

Document the headline, explanation, footnote, landing page and date. Only then assess whether offsetting supports the scope communicated to the audience.

Separate reduction from offsetting clearly

Reduction describes emissions decreased within the relevant sphere of responsibility. Offsetting relies on certificates or external projects intended to balance emissions. Both may form part of a climate strategy, but they are not interchangeable evidence for the same statement.

The advertising should show whether it claims an internal reduction, a calculated balance or both. A wording that highlights only the result “climate neutral” may hide the role of offsetting. The risk increases when offsetting is presented as if emissions had been fully avoided within the business itself.

Timing matters as well. Evidence for a completed year supports a statement about that past period. A plan for future projects does not automatically support a claim that climate neutrality has already been achieved. Retirement, validity period and allocation of certificates must remain traceable.

Align the claim scope with its explanation

The reach of climate-neutral advertising follows from its overall impression. “Our business is climate neutral” reaches further than “For this product, manufacturing emissions for 2025 were calculated and the remaining balance was offset through identified projects”. The broader the headline, the more complete the supporting evidence must be.

An explanation must be findable and understandable. Hidden notices, barely legible footnotes or a qualification available only after several clicks may not reliably limit the first impression. Key information should appear sufficiently close to the claim and remain perceptible on mobile displays.

After 27 September 2026, the express prohibition in item 4c of the annex must also be considered for offset-based consumer claims. The transitional rule in section 44 paragraph 16 does not remove the need to document the timing of the advertising and the goods concerned separately.

Build a complete evidence and approval file

The approval file should contain the advertising version, product or business reference, accounting boundary, period, calculation and emission factors used. Supplier data, test reports and responsibility for data collection should be added. Where values come from third parties, their origin must remain traceable.

For offset projects, document project name, certificate type, quantity, period, allocation and retirement or another form of cancellation. The file should show which part of the balance comes from internal reduction and which part comes from offsetting. A marketing approval alone does not replace this factual basis.

Keep earlier advertising versions with date and channel. If the balance, project portfolio or calculation method changes, the approved version must remain identifiable. This allows the claim to be compared with the evidence that existed at the relevant time.

Classify and respond to a challenge correctly

When advertising is challenged, preserve the complete material including landing page, qualification and imagery. Then bring together the date of service, affected products, accounting documents and offset evidence. Altering the file afterwards makes the timeline harder to establish.

The overview of aggressive commercial practices is relevant when the climate advertising is accompanied by alleged pressure or improper influence on market participants. The climate-neutrality review itself remains focused on the claim, its reference frame and offsetting.

For the question of who may pursue an injunction, the article on standing under section 14 UWG provides the appropriate legal context. Whether a specific response is useful depends on the advertising, evidence, timing and claim situation.

FAQ

Common questions about climate-neutral advertising

May a business keep advertising “climate neutral” when it offsets emissions? +

The claim must communicate its actual reference frame and the role of offsetting in a comprehensible way under section 2 UWG. From 27 September 2026, item 4c of the annex must also be considered where a consumer claim about greenhouse gas effects is based on offsetting.

Which documents support a climate-neutral claim based on offsetting? +

A traceable accounting record with product reference, boundary, period and calculation is required. Add documents on certificates or projects, their quantity, allocation and retirement. The file must cover the precise advertising version that was published.

What changes on 27 September 2026? +

Federal Law Gazette I No. 58/2026 introduces new UWG rules for environmental claims and several new annex prohibitions. Item 4c covers consumer claims that a product has neutral, reduced or positive environmental effects regarding greenhouse gas emissions when the claim is based on offsetting. Section 44 paragraph 16 UWG contains a transitional rule for certain civil claims concerning goods.

Topics

Climate neutralityOffsettingEnvironmental advertisingGreen claimsUWGEvidenceAdvertising claimsCompetition law

Have your case reviewed.

Give us a concise outline of the situation. We will clarify which documents are needed and which next step is appropriate.

Contact

Let us discuss your case.

Office

BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg Österreich