Greenwashing is a deceptive marketing practice in which an entity promotes green-based environmental initiatives, images, or claims but actually operates in a way that is damaging to the environment, or is less green than portrayed.
Greenwashing misleads consumers who prefer to buy products and services from environmentally responsible companies, potentially leading them to support businesses that contribute to environmental harm. Given consumers are more conscious towards sustainability, greenwashing can also tarnish the credibility of companies that are genuinely engaging in sustainable practices, as consumers may become skeptical of all environmental claims. This can also harm the brand reputation and credibility of the company that greenwashed their claims.
By diverting attention and resources away from meaningful environmental efforts, greenwashing can slow the progress needed to address critical environmental issues.
As consumers become more environmentally conscious, the pressure on companies to be transparent and genuinely sustainable increases. Recognizing greenwashing tactics is crucial for consumers, investors, and regulatory bodies to hold companies accountable and support true environmental progress.
Here are some greenwashing practices to look out for:
Products labeled with terms like “natural,” “green,” or “eco-friendly” without any substantiation or in contexts where they don’t apply.
Using fabricated data or images to suggest an environmental benefit where none exists.
Highlighting one trivial environmentally friendly aspect while ignoring more significant environmental impacts.
Making environmental claims that cannot be verified by an independent third party.
Using terms that are too vague or broad to be meaningful, such as "chemical-free" or "all-natural".
Claiming environmental benefits in product categories where the overall impact is high.
Keslio is an international sustainability advisory that helps companies and investors navigate their sustainability journey. We support our clients through various services, such as strategy development and implementation, reporting and communications, and greenhouse gas emissions calculations.
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