The big sustainability shift: ‘Regulation is forcing storytelling to grow up’

Sustainability storytelling overview

• Sustainability storytelling increasingly prioritises evidence, traceability and measurable outcomes
• Consumer fatigue is reducing effectiveness of guilt-based sustainability messaging
• EmpCo and EUDR tighten requirements for substantiated sustainability claims
• Sustainable products drove 44% of consumer goods growth
• Successful brands combine credible data with clear human-centred storytelling

Rules on sustainability reporting are becoming more prominent, prompting questions about the food and beverage (F&B) sector’s readiness to adopt them. Multiple industry factors are also spurring a shift in sustainability storytelling, including consumer fatigue, greenwashing concerns, increased regulatory scrutiny of environmental claims and evolving investor expectations.

Companies are changing how they talk about sustainability in response, signalling a move in corporate communications. “Sustainability storytelling in 2026 is becoming more specific, evidence-based and closely tied to business outcomes,” says Michael Babicki, director of environmental sustainability and reporting at IFF.

Two significant laws will come into effect in 2026, affecting all businesses that operate in the European Union (EU)—the Empowering Consumers Directive (EmpCo) and the EU Deforestation Regulation (EUDR). “Brands are increasingly aware of the pitfalls (regulatory and reputational) associated with environmental claims and are therefore more cautious about making broad environmental statements,” says Adam Flynn, associate at Shoosmiths.

Brands are moving away from broad statements and instead focusing on measurable impact, traceable, resilient supply chains, and tangible benefits such as reduced waste, lower emissions, water conservation, responsible sourcing and biodiversity outcomes.

This change may lead many to ask whether the ‘green food’ movement has peaked, or if it is simply entering a new phase?

As sustainability products grow, so too does consumer fatigue

According to NYU Stern Center for Sustainable Business’s Market Share Index data, products marketed as sustainable were responsible for 44% of the growth in the consumer packaged goods sector from 2013 to 2025. And as sustainable products are expected to continue to grow year over year, brands need to get their messaging right to avoid alienating consumers and losing their competitive advantage.

Innova Market Insights’ take on 2026 launch trends is that sustainability now behaves like a tiebreaker rather than a headline reason to buy: it wins when it’s tangible and truthful, and it’s penalised when it isn’t. Yet, the marketing language used hasn’t caught up. “A big chunk of the ‘sustainable’ shelf still leans on soft, uncertified language rather than proof,” says Bella Ali-Khan, senior strategist at Catch a Fire Agency.

To communicate sustainability effectively, brands need to balance accuracy with accessibility. “Messages must be robust enough to build trust, yet simple enough for everyday consumers to understand, and compelling enough to earn a moment of attention in a busy world,” says Julieta Tourne, head of communication and brand at Fairtrade International.

As sustainable products grow, shoppers’ attitudes and expectations around their level of responsibility are changing with it. Communications tracking on sustainability by Euromonitor International, an analytics company, shows that consumer guilt about individual environmental impact is fading along with the belief that personal choices make much difference.

“People are still buying ‘sustainably’, but they’ve stopped feeling emotionally responsible for the planet on the industry’s behalf,” Ali-Khan said. “The guilt-driven pitch has lost its engine and green fatigue exists, so we need to change how we talk,” Ali-Khan added.

New reporting rules will overhaul sustainability claims

“Reporting rules are surfacing a real gap between ambition and delivery,” Ali-Khan shares. Globally, brands are having to sharpen how they report on sustainability, prompting many to analyse what they communicate and how they tell their sustainability stories. Storytelling without substance is now a regulatory risk, not just a reputational one. In short: “Regulation is forcing storytelling to grow up,” says Ali-Khan.

“Holding robust substantiation and carefully reviewing claims prior to publication are likely to become increasingly important as regulatory scrutiny continues to intensify,” Flynn adds.

The European Union (EU) Empowering Consumers Directive (EmpCo) for the Green Transition Directive—which will apply to all businesses operating in the EU—bans unsubstantiated generic sustainability claims on new and existing products from 27 September 2026.

The new law aims to protect consumers from misleading environmental claims and labels, reduce greenwashing and distinguish credible certification schemes from labels with limited impact.

“It bans exactly the kind of unsubstantiated eco-friendly or green claim much of the category has relied on. Brands that leaned on soft language now have to either certify it or drop it,” Ali Khan said.

EmpCo can play an important role in supporting trustworthy labels, ensuring a level playing field. “Enabling consumers to more easily support products and businesses that align with their values and drive the change they want to see,” said Tourne.

Broader sustainability laws support storytelling significance

Layered on top of these new reporting rules is the EU Deforestation Regulation (EUDR), delayed twice and now due for large and medium operators from December 2026, with smaller enterprises given until mid-2027.

The EUDR requires traceable, deforestation-free supply chains for cattle, cocoa, coffee, palm oil, soy, and certain derived products, meaning verifiable sourcing data must support claims involving these commodities before they reach the market.

As the EUDR requires companies to ensure their products are deforestation-free before entering the EU, it will, operationally, provide greater transparency and traceability in supply chains. “It does present an opportunity to communicate to consumers; however, we must also recognise that it is important we take into account what consumers care about and how to tell that story,” said Tourne.

The law has narrowed liability toward whoever first places goods on the EU market, which eases pressure across the rest of the chain but sharpens it at that one point. “The net effect of both these things is a holding pattern: more time to comply, less room to talk loosely while doing it,” Ali-Khan said.

FAIRR’s 2026 review of the world’s largest agri-food companies found that the share of companies setting quantified regenerative agriculture targets has fallen from 35% in 2023 to 28% in 2026, with several major names quietly dropping commitments they had previously announced.

While laws relating to sustainability are developing and will shape global brands’ communication strategies, they’re not industry-wide. “While compliance is improving, it remains relatively patchy,” Flynn said. The rules on green claims can be complex, particularly for SMEs and brands operating across multiple territories.

Beyond claim-specific rules, horizontal measures such as the EU Corporate Sustainability Reporting Directive and the EU Corporate Sustainability Due Diligence Directive add a further layer to the compliance landscape. Following the Omnibus I Directive, the raised thresholds under both Directives have removed a significant number of brands from scope entirely. For those that remain within scope, brands should monitor these shifting deadlines closely to ensure their compliance timelines stay aligned.

Overall, the message is clear, though. “Align marketing, legal and compliance teams now, substantiate every claim before it reaches the market and treat compliance data as a commercial asset rather than a box-ticking exercise,” says Sarah-Jane Dobson, partner at Ashurst Perkins Coie.

Scrutinising sustainability stories

Yet, consumers continue to ask tough questions. “Consumers, customers and regulators have become much more discerning about environmental messaging and are increasingly sceptical of vague or unsubstantiated claims,” said Babicki.

Consumers want transparency around how products are sourced, produced and verified, and they expect brands to back up sustainability statements with measurable impact and credible evidence.

“We’re at a point where, for sustainability communications, transparency is becoming just as important as inspiration,” said Tourne. Regulatory developments, evolving consumer expectations, and growing supply chain challenges mean that storytelling must be rooted in evidence while still engaging people emotionally.

Reporting requirements are encouraging companies to build stronger data foundations and more structured sustainability governance. Organisations are investing in systems, processes and cross-functional collaboration to improve the quality and consistency of sustainability information across their operations and supply chains.

“Readiness now extends beyond producing an annual sustainability report,” said Babicki. It involves collecting reliable data, improving traceability, understanding supplier performance and ensuring that external communications align with what can be documented and verified. “This has elevated sustainability from a communications topic to a broader business capability,” Babicki added.

QR codes and traceability data are becoming the mechanisms for demonstrating transparency in communications, allowing people to verify sourcing claims themselves rather than take a label’s word for it.

“Regenerative agriculture is the sharpest example of language running ahead of delivery,” Ali-Khan said. However, set against FAIRR’s credibility findings, Ali-Khan continued, “the honest story right now is uneven progress”.

“Circular packaging is following a similar arc, but with less ambiguity,” Ali-Khan said. Reformulation and packaging changes are becoming part of retailer policy as much as brand choice. “Clean” and “circular” are turning into baseline expectations rather than differentiators.

“Supply chain resilience closes the loop,” Ali-Khan noted. As deforestation and traceability rules force sourcing data into existence, the smart move is turning that compliance data into the proof points consumers are already asking for, rather than filing it away as a regulatory formality.

Sustaining success in sustainability storytelling

Successful brands building trust are those that combine credible data with clear, human-centred storytelling. “Environmental outcomes are connected to social outcomes,” said Tourne. Whether that’s protecting biodiversity, reducing food waste, supporting farmers, improving efficiency or strengthening supply chain resilience.

“Brands shouldn’t see data and storytelling as competing approaches; they need both,” said Tourne. Robust data provides the credibility needed in an increasingly regulated environment, while people-centred stories make sustainability relevant and memorable.

“The era of broad sustainability claims is ending,” said Babicki. In 2026, successful F&B brands are replacing promises with proof—using traceability, measurable outcomes and transparent reporting. It’s about building credibility and trust with consumers, customers and regulators alike, while communicating openly about both progress and ongoing challenges.

“The winning story in 2026 treats regulation as the foundation, verification as the currency, and specificity as the only thing that still earns trust,” Ali-Khan emphasised.