Greenwashing Types and Tactics: How to Avoid Greenwashing

Greenwashing is the practice of conveying false information to make a company look like it’s meeting impressive sustainability goals, even though it’s not actually making sustainable efforts. Greenwashing is also known as “green sheen.”

Greenwashing is a deceptive marketing practice that aims to make people think of a company as environmentally responsible so that the company can compete in today’s marketplace. On a global scale, companies have a responsibility to manage environmental and social risks so they don’t further damage the environment. In recent years, consumers have started to care more about corporate social responsibility and prefer to buy sustainable products. For this reason, companies will engage in greenwashing to attract clientele.

Environmental activist Jay Westerveld coined the term “greenwashing” in the 1980s. Since then, car manufacturers, fashion brands, and restaurants have partaken in greenwashing.

There are several ways companies engage in greenwashing. A few examples of greenwashing incudes making false claims, misleading consumers, or exaggerating environmental benefits. Here are a few other types:

1. 1. Hidden trade-offs: Sometimes brands tout a method they’re using to help the environment, even though it might have consequences that harm the environment negatively. For example, a company may promote how it’s using eco-friendly compostable materials, but they won’t address the environmentally destructive practices or fossil fuels used to produce it.
2. 2. Irrelevant environmental claims: A company may promote ways its being environmentally friendly, even when it’s not important to its overall environmental impact. For instance, companies may claim they use paper made out of organic materials, which is true because most paper comes from renewable materials like wood or bamboo.
3. 3. Lack of evidence: Sometimes companies will make environmental claims without any evidence to back them up. This lack of proof means that the company is likely greenwashing. For example, a company may say that a product is organic or nontoxic, but they don’t explain how they have arrived at their claims.
4. 4. Lesser of two evils: A company may prop up one benefit of a green product even when there are environmental issues. In this case, marketers use environmental marketing claims to make products sound greener than they are in actuality.
5. 5. Meaningless labels instead of certifications: Some products feature buzzwords like “eco-friendly” or “made with natural ingredients” on its packaging even when it’s not backed up with proof. Certifications like USDA Organic, LEED, or Energy Star ratings legitimately can help prove a product’s eco-friendliness.
6. 6. Misleading claims: A company may make environmental claims about their carbon footprint that misleads consumers.
7. 7. Symbolic actions: One way companies brand themselves as eco-friendly is through environmental actions that lead to small impacts. For example, a company may advertise that it worked with environmental groups to pick up plastic bottles around New York City.

There are many ways for companies to avoid corporate greenwashing. Here’s a few ethical business practices companies can use and consumers should note:

1. 1. Data: Companies should create a way to track and update data on their green initiatives, and regularly update it on their website, branding, and press releases.
2. 2. Environmental third-party certifications: Official certifications add legitimacy to any sustainable business. Credible sustainable businesses like the Forest Stewardship Council, Energy Star, or Rainforest Alliance review and endorse eco-friendly products.
3. 3. ESG disclosures and best practices: Several international organizations provide best practices to help businesses take responsibility for sustainability. These processes help organizations organize, measure, and improve the internal data collection and communication needed so it can communicate its performance. The Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and the Principles for Responsible Investment (PRI) all provide a framework for ESG disclosures.
4. 4. Social impact: A company’s report needs to consider employees, customers, communities, and supply chain partners. Businesses should collect data on community support (like donations to local organizations and support of local environmental initiatives) as well as international initiatives (like how it worked toward improving labor standards and facilities).

Companies should also reflect on past sustainability efforts and create an environmental report. Within it, businesses should consider how to improve upon the efforts they’ve made and how to further sustainable missions.

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