Last updated: What is Greenwashing? Definition, examples, and how to avoid it

What is Greenwashing? Definition, examples, and how to avoid it

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As consumer preference for sustainable products grows, so has the problem of greenwashing. Many brands are positioning themselves and their products as healthy for the planet, but consumers have become skeptical, for good reason.

A 2022 Harris Poll for Google Cloud found 80% of 1,491 executives truly believe their companies are doing a bang-up job on environmental sustainability. Yet, 58% of those same leaders globally and 68% in the United States readily admit their companies have overstated their sustainability, or greenwashed, at times.

What is greenwashing?

Greenwashing, or green sheen is a marketing practice where companies provide the public or investors with unsubstantiated or outright false information in order mislead them about their environmental commitments in order to win over consumers. It can involve misleading or even false statements that make a company and its products or services appear environmentally friendly.

When a brand’s claims about going green don’t match up with what they’re really doing to help the planet, that’s greenwashing.

The term was coined back in the 1980s by Jay Westerveld, an ecologist who exposed a hotel’s thin environmental claims. Since then, consumers have become wary of companies and products that purport to be eco-friendly.

A survey of 2,000 US consumers last year found that more than half strive to make sustainable buying choices, but 88% don’t immediately trust brands that say they’re sustainable.

Greenwashing stats highlight the risks

The European Commission last year issued a report that found 42% of corporate environmental claims made online were likely to be false or deceptive. More than half of online green claims lacked evidence.

A NewClimate Institute and Carbon Market Watch report that found net-zero emissions claims from 25 major companies to be highly exaggerated.

“We set out to uncover as many replicable good practices as possible, but we were frankly surprised and disappointed at the overall integrity of the companies’ claims,” said Thomas Day of NewClimate Institute, in a statement.

The risks of greenwashing are huge. Brands could face litigation (there’s a whole greenwashing litigation cottage industry now), regulatory fines, or a loss of public trust.

According to a Harvard Business Review study, customers are highly aware of the gap between a company’s stated environmental goals and actual implementation, which leads to lower customer satisfaction scores.

“Moreover, this blow to customer satisfaction is economically significant; prior studies found that even small changes in a firm’s customer satisfaction score can have significant implications for corporate performance,” researchers said.

Examples of greenwashing

With consumers bombarded by green messaging, there are countless examples of brands misrepresenting their sustainability. Here are some common techniques:

  1. False impressions. Imagery is powerful, after all. Using images of beautiful landscapes in an ad, for example, can convey sustainability while the product isn’t (think plastic water bottles).
  2. Misleading advertising. Terms like natural, organic, and sustainable are used without any third-party certification.
  3. All talk but no action. A brand claims they’re going green, but doesn’t actually change any policies to support the claim or reduce emissions
  4. Distraction. A company promotes a product as green, but ignores other aspects like packaging that hurt the environment.
  5. Meaningless. A brand promotes a product as eco-friendly when it’s actually something that’s a common attribute or a regulatory requirement.
Consumers and activists are are quick to point out hollow environmental claims. Social media is filled with examples, like this:

No publicity, please: “green-hushing”

The risk of being accused of greenwashing is making some organizations skittish about divulging their environmental plans and commitments.

In fact, even though 72% of 1,200 private companies polled by a consultancy called South Pole have emissions targets for meeting global climate goals, nearly a quarter say they have no plans to publicize their progress beyond what’s mandated.

South Pole calls this “green-hushing” and says the lack of transparency is counterproductive.

“More than ever, we need the companies making progress on sustainability to inspire their peers to make a start,” said Renat Heuberger, CEO of South Pole, in a statement. “This is impossible if progress is happening in silence.”

Marketing tips to keep it real

While letting consumers know what you’re doing for the planet is important, marketers must be careful to avoid falling into a greenwashing trap. Here are some things to keep in mind when making environmental claims.

  • Don’t rely on pretty pictures. Warm-and-fuzzy images connoting a more sustainable future look great, but if you can’t honestly articulate and show that you’re genuinely marching toward that vision, avoid superficial imagery at all costs.
  • Be transparent. Use credible third-party certifications and make sure consumers can easily find them.
  • Don’t lie. This seems obvious, yet too many marketers are willing to cut corners on truth or redefine their misstatements as alternative facts. There’s nothing more deadly to brand reputation and loyalty than to be caught deceiving people, even unintentionally. If your company is in early stages with sustainability, be honest and keep them updated on what you’re doing to achieve your goals.
  • Beware of influencers. Marketers have increasingly sought influencer endorsements to help position brands as green friendly, especially with younger audiences. But many of these engagements, especially in the fashion industry, have led to greenwashing accusations. A UK fashion brand came under fire this year for its work with influencer Kourtney Kardashian. When using an influencer to promote environmental responsibility, make sure there’s substance behind the activation.

Greenwashing has been with us for longer than most brands care to admit. With public and regulatory interest in saving the planet continuing to increase, it’s likely to become even more common.

By staying true to a brand and confining promotions and narratives to legitimate environmental activities, brands can avoid any greenwashing griminess.

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Frequently asked questions (FAQs):

Following are five practical tips that consumers can use to detect greenwashing and make more informed choices about the products they purchases:

  1. Look for specific claims and evidence of those claims:  be wary of vague terms like “eco-friendly,” “green,” or “natural” can be misleading if not clearly defined. Genuine green claims should be specific and backed by verifiable data. For example, if a product claims to be “eco-friendly,” look for detailed explanations of what makes it so, such as “made from 100% recycled materials” or “produced using renewable energy.” Check for trustworthy third-party certifications from organizations like Energy Star, USDA Organic, or Fair Trade can validate environmental claims. These certifications usually follow stringent standards and are reliable indicators of a product’s sustainability.
  2. Examine the product’s entire lifecycle: investigate the materials used in the product. For instance, if a product claims to be made from recycled materials, verify if a significant portion is indeed recycled. A product labeled as “biodegradable” should break down naturally within a short time under normal conditions. Additionally, assess the environmental impact of the product’s production. A product might be labeled as sustainable, but if its manufacturing process is highly polluting, the overall environmental benefit might be negligible.
  3. Demand transparency and accountability: companies genuinely committed to sustainability provide clear, detailed information about their environmental efforts. This includes specific actions they have taken, measurable goals they have set, and the progress they have made towards achieving these goals. Look for products from companies that provide regular updates on their sustainability initiatives. This includes reporting on their progress towards achieving their environmental goals and any challenges they have faced.
  4. Recognize common greenwashing tactics: be skeptical of claims that, while true, are not particularly relevant. For example, labeling a product as “CFC-free” when CFCs are already banned by law doesn’t provide any additional environmental benefit. Furthermore some products might highlight a single positive attribute while ignoring other significant negative impacts. For example, a product might be marketed as recyclable but could require a lot of energy to produce.
  5. Compare products and companies: compare the environmental claims of similar products. A product might claim to be the greenest in its category, but this doesn’t mean it’s truly sustainable. Look at the overall environmental impact of the product, not just isolated claims. Evaluate whether the company practices sustainability across its entire operation. This includes their supply chain management, energy use, waste reduction efforts, and overall corporate policies.

Always remember that genuine sustainability goes beyond marketing claims and involves a comprehensive commitment to environmental responsibility.

Greenwashing can have several direct and indirect negative impacts on the environment. Here are six ways it affects the environment:

  1. Increased waste generation: Greenwashing contributes to increased waste generation by marketing products as recyclable when they are not, leading to more waste in landfills. Additionally, greenwashed products often lack durability, resulting in frequent disposal and replacement. Products labeled as biodegradable may also fail to break down as promised, causing persistent pollution. This deceptive practice exacerbates waste management and environmental degradation.
  2. Misdirection of consumer choices: When companies make false or exaggerated claims about the positive environmental impact of their products, consumers may be misled into purchasing products that are not truly sustainable. This misdirection of consumer choices diverts spending away from genuinely eco-friendly products, thereby reducing support for companies that are making real efforts to minimize their environmental impact.
  3. Increased environmental degradation: Companies engaging in greenwashing often continue their harmful environmental practices while masking them with misleading marketing. This means that the environmental damage continues unabated, whether through pollution, excessive resource consumption, or inadequate waste management.
  4. Erosion of public trust: As consumers repeatedly encounter false claims through greenwashing, they become increasingly skeptical of all environmental claims, including those from companies that genuinely employ sustainable practices. This skepticism can hinder overall progress towards environmental sustainability as consumer support wanes.
  5. Regulatory and policy implications: Greenwashing can complicate regulatory efforts to promote sustainability. If false claims are widespread, it becomes more challenging for regulators to enforce environmental standards and for policymakers to design effective sustainability programs. This can slow down the implementation of necessary environmental regulations and policies.
  6. Impacts on global sustainability goals: At a broader level, greenwashing can impede progress towards global sustainability goals, such as those outlined in the Paris Agreement and the United Nations Sustainable Development Goals (SDGs). By masking true environmental performance, greenwashing can lead to a lack of accountability and transparency, making it harder to track and achieve these critical objectives.

The ‘Seven Sins of Greenwashing’ is a concept introduced by TerraChoice, now part of UL Solutions, to help consumers identify misleading environmental claims made by companies that can deceive consumers about the environmental benefits of their products:

  1. Sin of the hidden trade-off: Claiming a product is “green” based on a single environmental attribute without attention to other important environmental issues. For example, paper products that are touted as recyclable but whose manufacturing process involves significant environmental harm.
  2. Sin of no proof: Making environmental claims that cannot be substantiated by easily accessible supporting information or third-party certification. For instance, a product claiming to be made from recycled materials without providing any verification.
  3. Sin of vagueness: Using poorly defined or broad terms that are likely to be misunderstood. Terms like “all-natural” can be misleading as they do not specify what makes the product environmentally friendly.
  4. Sin of worshiping false labels: Giving the impression of third-party endorsement where none exists. This involves using fake labels or certificates to suggest that a product has been certified as environmentally friendly.
  5. Sin of irrelevance: Making an environmental claim that may be truthful but is unimportant or unhelpful to consumers seeking genuinely green products. For example, claiming that a product is CFC-free when CFCs are already banned by law.
  6. Sin of lesser of two evils: Claiming to be greener than other products in a category that is inherently environmentally unfriendly. For example, organic cigarettes are still harmful despite being marketed as a better alternative.
  7. Sin of fibbing: Making environmental claims that are simply false. This includes outright lies about the environmental practices or benefits of a product.

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