January 16, 2023
Greenwashing is the deceptive practice of making a product or company appear more environmentally friendly than it actually is. Read this blog to explore greenwashing definitions and examples.
Greenwashing is a term used to describe the deceptive use of marketing to promote a product or service as being environmentally friendly when in reality, it is not. It is a form of false advertising that misleads consumers into believing that a company or product is more environmentally responsible than it is. Greenwashing takes advantage of people's desire to make eco-friendly purchasing choices and is unethical for businesses.
1. Hidden Trade-Offs: Companies often use greenwashing to detract from their environmental impacts by emphasising the benefits of their product or service while omitting any negative information.
2. Vagueness: Companies use vague language to describe their product or service, making it difficult to determine the true environmental impact.
3. No Proof: Companies claim to be "green" or "eco-friendly" without providing any evidence to support their claims.
1. Hidden Trade-Offs: Making claims that only tell part of the story.
2. No Proof: Making claims without providing evidence.
3. Vagueness: Making broad, vague claims that are challenging to verify.
4. Irrelevance: Making claims that may be true but are not relevant to the product's environmental impact.
5. Lesser of Two Evils: Making claims that may be true but distracts from the product's or company's more significant environmental impacts.
6. Fibbing: Making false or misleading statements.
7. False Labels: Companies that use false labels, certifications or seals to suggest a product is green when it isn’t.
Unfair to others: greenwashing can take away from companies and products that are actually making a real effort to be more sustainable.
False advertising: greenwashing involves making misleading or unsubstantiated environmental claims in marketing, advertising, or other promotions.
Undermining progress: Companies may use greenwashing to avoid making actual changes to their practices. This can be problematic as it prevents progress and may even lead to decreased sustainability efforts.
Confusing consumers: By making false claims, companies can cause confusion among consumers. This can make it difficult for consumers to make informed decisions and lead to them spending money on products that are less beneficial to the environment than they think.
Unethical business practices: Greenwashing is an unethical business practice as it misleads customers into believing that the business is more environmentally responsible than it actually is. This not only harms customers but also harms the environment by discouraging them from making more sustainable choices.
Wasting resources: Companies that engage in greenwashing may waste valuable resources such as energy and water in order to promote their false claims of environmental friendliness. This can be detrimental to the environment and negatively impact the company's bottom line.
According to Harvard Business Review, research carried out in Europe found that 42% of green claims were exaggerated, false, or deceptive, which points to greenwashing on an industrial scale. A truly shocking statistic.
Coca-cola has faced criticism for its record on sustainability. For example, they have used packaging with environmental-friendly messages while the actual product is highly unsustainable. They have also been accused of using the term “sustainable” to describe their packaging when it is actually made from plastic or aluminium, both of which are not considered to be sustainable materials. Additionally, Coca-Cola has been called out for misleading consumers about its commitment to sustainability by making vague claims about its efforts and not providing concrete details about its initiatives.
McDonald's has been accused of using marketing techniques to make its products seem more environmentally friendly and healthy than they are. This includes using terms like "sustainably sourced" and "all-natural" to describe its ingredients and to promote initiatives like its switch to paper straws.
Starbucks has been accused of claiming that its coffee is sustainably sourced when in reality, much of the coffee it sells is not certified as sustainable. Additionally, Starbucks has been accused of using misleading imagery and language to suggest that its products are more sustainable than they are.
Fiji Water has been criticised for the company's claims of sustainability, the amount of plastic used in its packaging, and its water-related impact on local communities.
Nestle has been accused of greenwashing in the past, but it has made efforts to reduce its environmental impact. The company has committed to achieving zero-net emissions by 2050 and has invested in several initiatives to reduce its water consumption, agricultural waste and packaging. Additionally, Nestle has launched initiatives to reduce its carbon footprint, such as its Cocoa Plan, which works to reduce deforestation.
Companies can demonstrate that they are not greenwashing by taking the following steps:
1. Being transparent about their environmental practices and progress. Companies should be honest and open about the environmental impacts of their activities and their plans for reducing those impacts.
2. Taking action to reduce their environmental footprint. Companies should make fundamental changes to reduce their environmental impacts, such as investing in renewable energy, reducing single-use packaging, and switching to more sustainable materials.
3. Show supporting independent verification. Companies should seek third-party confirmation of their environmental claims and practices by organisations such as the Green Business Certification Inc., Green Seal, ICROA.
4. Keeping their environmental claims specific. Companies should avoid making vague claims about their environmental performance, such as "we are eco-friendly" or "we are green." Instead, they should make specific claims about their environmental practices, such as "we use 100% renewable energy."
5. Educating their employees. Companies should ensure that all employees understand their environmental commitments and are empowered to make sustainable decisions.
Patagonia generally avoids greenwashing by using rigorous standards and independently verifying its environmental claims. For example, Patagonia has been a member of the Sustainable Apparel Coalition since 2011, and its products have been awarded the bluesign® standard, which requires a comprehensive approach to sustainability. Additionally, Patagonia actively works to reduce its environmental impact by incorporating sustainable materials and processes, such as using recycled materials and committing to fair labour practices.
Seventh Generation's commitment to transparency helps it to avoid greenwashing. The company is transparent about its ingredients, processes, and materials, making sure to source responsibly from suppliers who meet its standards. It also uses third-party certifications such as the EPA Safer Choice, USDA Organic, and Rainforest Alliance to prove the sustainability of its products. Additionally, it provides detailed information about its products on its website, including information about the environmental impact of the production process. Seventh Generation also conducts regular lifecycle analyses of its products to ensure they are produced in an eco-friendly manner.
Fonterra: Fonterra does not greenwash by being transparent about its environmental initiatives, taking responsibility for its environmental impacts, and providing accurate and up-to-date information about its environmental activities. It also takes steps to reduce its ecological footprint, such as reducing water and energy use, investing in sustainable farming practices, and investing in green technologies. Additionally, Fonterra has a public commitment to sustainability and works with third-party organisations to verify the accuracy of its claims. Fonterra has a thorough sustainability report accessible to the public providing detailed information on its actions and goals.
Air New Zealand does not greenwash by being transparent and honest in the way they communicate its efforts to reduce its environmental impacts. They use facts and figures to back up their claims and make sure that their customers and stakeholders are aware of what they are doing to be more sustainable. They also communicate their progress and any areas of improvement they need to focus on. This helps to ensure that their customers and stakeholders can make an informed decision about their commitment to sustainability. Air New Zealand has published a comprehensive and insightful sustainability report demonstrating transparency on how they plan to achieve its goals.
NZ Post is committed to sustainability and eco-friendly practices. They have committed to reducing their carbon footprint and have implemented various initiatives. These include carbon-neutral delivery, providing recyclable packaging, and using renewable energy. NZ post has committed to being carbon neutral by 2023 and has published its carbon reduction plan.
A study by Harvard Business Review found that companies with a high capability reputation managed to maintain their customer satisfaction levels intact when perceived to be greenwashing (they experienced only a small and statistically insignificant drop of 0.30%). While satisfaction for firms with a low capability reputation dropped by 2.40% when they are perceived to be greenwashing. We must do better and hold every company accountable!
Greenwashing is a problem that affects consumers and businesses alike. It is important to be aware of greenwashing and to be wary of companies that are making false claims about their environmental efforts. It is also important to support companies genuinely committing to sustainability and recognise their efforts. Although greenwashing is a difficult problem to combat, it is possible to make informed decisions and become more knowledgeable about the companies you choose to support.
