Greenwashing and Climate Communication: New Guidance from the FOEN on the Application of Article 3(1)(x) of the Unfair Competition Act

Terms such as «climate-neutral», «climate-positive» and «environmentally friendly» have become commonplace in corporate communications. In new enforcement guidance, the Swiss Federal Office for the Environment (FOEN) has clarified the legal requirements that apply to climate-related claims under Swiss unfair competition law.

Background and facts

Under Article 3(1)(x) of the Swiss Unfair Competition Act (UCA), it constitutes an unfair commercial practice to make claims about a company, its goods, works or services in relation to their climate impact unless those claims can be substantiated by objective and verifiable evidence.

On 2 March 2026, the FOEN published enforcement guidance on this provision, which has been in force since the beginning of 2025. The guidance explains the statutory requirements in greater detail and is intended to promote a consistent approach to enforcement by both public authorities and private parties.

Key legal points

As general principles, the enforcement guidance stipulates that, from the customers’ perspective, climate-related claims must be clear, factually accurate and verifiable, and must be substantiated by the company in the event of a dispute.

The enforcement guidance also makes a distinction that is crucial in practice. Product-related climate claims must not be based on offsetting measures – specifically CO₂ certificates – outside the product life cycle, as this would be misleading from the consumer’s perspective. Company-specific disclosures may include offsets under certain conditions, in particular whilst adhering to the hierarchy of measures, according to which emissions must first be reduced directly as far as possible (subsidiarity of offset measures).

Of particular significance is the assessment regarding the terms ‘climate-neutral’ or ‘climate-positive’, which, according to the FOEN’s new implementation guidance, should not be used due to a lack of verifiability.

Classification

Companies bear the risk that, in the event of a dispute, climate-related disclosures without sufficient supporting evidence may be deemed misleading. Companies should therefore actively review their sustainability communications for compliance with the new enforcement guidance and continuously document the relevant evidence. Certain terms such as ‘climate-neutral’ should be avoided altogether, as, according to the FOEN, the necessary evidence for such claims cannot be provided based on the current state of scientific knowledge.

Although the FOEN’s enforcement guidance is not formally binding on the courts, it is likely to carry considerable weight in practice, as the courts regularly follow such guidelines.

The FOEN’s enforcement guidance is available here.