What is greenwashing?
The term "greenwashing" is a portmanteau of the words "green" and "whitewashing”. The term was coined in the late 1980s in the United States, and it has since gained widespread usage in both the business and environmental communities. This concept emerged as a response to the growing awareness of environmental issues in the late 20th century. As consumers became more interested in sustainability and eco-friendliness, some companies began to make false or exaggerated claims about their environmental performance to appeal to this market.
Greenwashing refers to the practice of making false or misleading claims about a company's environmental practices to appear more sustainable or eco-friendly. This form of false advertising aims to deceive consumers into believing that a product or service is environmentally friendly, even when this may not be the case. Greenwashing is a marketing strategy that is used to promote a more virtuous image of a company's activities, even when the environmental impact of these activities may be minimal or nonexistent. It is a way for companies to abuse ecological or sustainable development arguments for their benefit, rather than for the benefit of the environment.
Some examples of greenwashing.
More and more companies want to improve their image by appearing more sustainable, highlighting one or more ecological aspects of their products and services. However, this communication can sometimes go too far and is not in line with the company's practices or the composition of its products. Greenwashing can take many forms, from blatant to subtle, and many brands have been criticized for engaging in this practice.
There are many ways companies can engage in greenwashing, such as using green colouring on packaging or logos, promoting environmental slogans, using eco-friendly visuals (such as plants or landscapes), creating an "ecological" label, etc. These techniques are often used to create the impression that a company is more environmentally friendly than it is, even when its actual environmental impact may be minimal or nonexistent.
Greenwashing in the fashion industry
H&M has been criticized for its "Conscious" collection, which claimed to be made from more ethical and eco-friendly materials. However, the brand provided very little information about the environmental impact of these clothes. Other examples include Zara and its "efficient" stores, or even Adidas and its 50% recycled Stan Smith shoes.
Greenwashing in the automotive industry
Several car brands have used greenwashing to improve their image, often with disastrous results. The Volkswagen "dieselgate" scandal of 2015 is a prime example of this, where the company lied about the emissions levels of its vehicles. Other brands that have been accused of greenwashing in the automotive industry include Peugeot or General Motors and its 1000 horsepower electric Hummer.
Other examples of greenwashing
Some well-known or lesser-known cases of greenwashing:
The European Union adopts a law banning greenwashing.
With the Green Claims Directive, the European Union aims to combat greenwashing practices.
In early 2024, the Parliament approved this directive aiming to improve product labeling and prohibit the use of misleading environmental claims. This move follows growing concerns regarding greenwashing practices, where companies make unsubstantiated claims about the sustainability or environmental impact of their products to influence consumer purchasing decisions. According to figures published by the European Commission, approximately 53% of companies' environmental claims are considered "vague, misleading, or unsubstantiated", and 40% are deemed "completely lacking in foundation".
The Green Claims Directive seeks to establish stricter regulations to govern these claims by prohibiting unsupported generic statements and requiring tangible evidence for any environmental assertion. This regulation aims to promote more transparent advertising and enable consumers to make informed choices regarding sustainable purchases.
How companies can avoid greenwashing?
Companies need to avoid greenwashing to maintain trust with stakeholders and to ensure that their environmental claims are accurate and honest.
To avoid greenwashing, companies should:
Be transparent: Companies should be open and transparent about their environmental practices, including any challenges they are facing and the steps they are taking to address them.
Be specific: Companies should be specific about the environmental benefits of their products or practices. For example, instead of making vague claims about being "eco-friendly," they should provide details about how their products or practices are reducing greenhouse gas emissions or conserving resources.
Be verifiable: Companies should be able to back up their environmental claims with evidence. This may include providing third-party certifications, such as LEED or B Corp, or publishing data and information about their environmental performance.
Be consistent: Companies should ensure that their environmental claims are consistent with their overall business practices. For example, if a company claims to be committed to sustainability, it should have policies and practices in place to support this claim, such as recycling programs or renewable energy investments.
Be honest: Companies should not make false or exaggerated claims about their environmental performance. If a company is unable to meet its environmental goals or if it has made mistakes in the past, it should be honest and transparent about these issues.
By following these best practices, companies can avoid greenwashing and ensure their environmental claims are accurate and credible.
Transparency is key!
Many companies are trying to communicate about their ecological and sustainable development efforts in their marketing. However, these claims often lack proof or specific data to support them. The key to combating greenwashing is transparency. By being open and explicit about their practices, companies can provide evidence of their commitment to sustainability and allow consumers to make informed decisions.
Communication campaigns should be transparent, and explicit, and avoid exaggeration to avoid misleading consumers and provide access to evidence of the company's sustainability efforts.
To improve your image with consumers and demonstrate a genuine, effective ecological approach, consider conducting a carbon footprint or a life cycle assessment or obtaining certification for your data. This will allow you to communicate effectively and with evidence.