When visiting grocery stores nowadays, it’s hard not to spot products that are labelled “plastic-free,” “carbon-neutral,” or “sustainable”. And since a growing number of people are concerned about how their consumer decisions will affect the environment – from the greenhouse gas emissions of manufacturing process to the waste and pollution that remain after the products have been used — such environmentally-sound labels are appealing.
Indeed, according to various surveys, more and more people are inclined to purchase goods that are labelled as being environmentally friendly or safe. However, not all is as good as it looks and very few people can identify false eco-friendly claims.
Do you think you can distinguish between eco-fiction and green facts? Let’s find out.
What is “greenwashing”?
The practice of giving the wrong impression or providing deceptive information about how environmentally friendly certain goods are is known as ‘greenwashing’.
But the term ‘greenwashing’ was not coined until 1986 when in an academic paper by ecologist, Jay Westerveld, shared the story of a situation he experienced in Fiji. While there, he discovered that one hotel asked customers to reuse towels “to help the environment” despite working on an environmentally damaging building project to increase its square footage within an ecologically sensitive area of the seashore.
To highlight this hypocrisy, Jay noted in the article, “it all comes out in the greenwash”. A local publication picked up on this term and thereafter it spread throughout the media.
Today, the list of entities using misleading marketing and communication practices that are connected to the environment in one way or another is on the rise. According to a 2021 European Union evaluation, 42% of the environmental claims made by companies involved in clothing, cosmetics, and home equipment were exaggerated or misleading. Furthermore, data provided by the research firm, RepRisk, showed that greenwashing cases in the banking and finance sector increased by 70% in 2023.
Examples of greenwashing
Some companies make unsupported claims to trick customers into thinking that their products are eco-friendly or even benefit the environment. Others engage in greenwashing to draw attention to their product’s sustainable features to hide their engagement in unethical environmental activity.
There are myriad ways in which companies can be engaged in greenwashing.
Let’s analyze some of these.
1️⃣ Making a false claim that a business is on track to achieve net zero emissions when no real plan is in place.
Case study: In 2015, the U.S. Environmental Protection Agency discovered that numerous Volkswagen vehicles marketed in the U.S. had ‘defeat devices’ – software in diesel engines that could recognize when vehicles underwent testing and adjust performance in a way that would enhance the results.
The German car manufacturer subsequently admitted to falsifying emissions testing.
2️⃣ Deliberate use of terms such as ‘green’ or ‘eco-friendly’ that lack clear definitions and thus can be misleading.
Case studies: Ads by Lipton Ice Tea stated that its bottles were “100% recycled” and Ryanair claimed to be the lowest-emission airline in Europe both of which were deemed to be misleading statements in the UK.
3️⃣ Focusing on one green feature of a product and omitting to mention other aspects that are far from being eco-friendly.
Case study: In 2019 it was found that IKEA had been manufacturing beech wood chairs using wood that had been logged illegally in Ukraine’s Carpathian region which is inhabited by endangered animal species such as lynx, wolves, and bison.
How can consumers tackle greenwashing?
1️⃣ Adopt a critical attitude to environmental claims on any product label. Consumers should doubt the information on a label and find a second source that proves the claims.
2️⃣ Study the environmental impact of various types of products using their labels to learn whether a product is eco-friendly or not.
3️⃣ Learn about the practices engaged in by the company they are interested in. Study a company’s environmental track record.
4️⃣ Discover the materials that a product is made of and/or its parts to learn whether these harm ecosystems.
How and why should companies avoid greenwashing?
1️⃣ Communicate the advantages for the environment in plain terms that are easy to understand. Validate your claims. Avoid exaggerating the advantages by using fictitious data or creative math.
2️⃣ Be specific about the statements you make. Clearly describe the improvements you intend to achieve.
3️⃣ Obtain certifications from reputable environmental organizations like Leadership in Energy and Environmental Design (a green building rating system) or Fair Trade.
4️⃣ Arrange regular independent audits to validate sustainability claims and make sure environmental regulations are being followed.
5️⃣ Provide comprehensive reports about the effects on the environment. Provide the data sources and explain the approach used to assess environmental impact.
6️⃣ Provide channels for feedback from stakeholders and customers to constantly improve sustainability efforts.
Final word
Greenwashing is viewed as a barrier to achieving net zero by 2050 because it allows various organizations to adopt a business as usual approach while making no adjustments to their climate strategy or attempting to mitigate the impact of their activities. The UN claims that greenwashing damages public confidence in legitimate climate action and pulls focus away from practical solutions. To deal with this practice, consumers, companies, and the authorities need to take action.
