Greenwashing unveiled: how companies “speed up” decarbonisation

Today it is really difficult for consumers to get oriented between the various environmental labels on the packaging or advertisements of the various products.

There are more than 200 environmental labels in the European Union and more than 450 worldwide.

Some of these are reliable but some are not.

The problem with inaccurate reporting on environmental commitments is greenwashing. That is, companies that give a false impression of their environmental impact or commitments. Greenwashing brings confusion to the market, harms companies that are committed to greening their products and leads to a less green economy.

Greenwashing can be connected, for example, to these behaviors:

Goalwashing

Noticing the growing interest in sustainability, some companies may communicate a commitment to reduce their environmental impact by a certain date without a precise plan or milestones to ensure that they will keep their word.

Cherry picking

Considering the need to deliver fast results to the market to meet the demand for sustainable consumption, some companies can limit their commitment to some areas of their business, usually lateral.

For example, instead of innovating the products they sell in order to reduce carbon emissions or the consumption of raw materials or energy, a company may decide to make to sustainable packaging, perhaps in recycled plastic or paper, putting emphasis on this operation. This to diverts attention from the main product and gives a bit of greenery to a product that may not be sustainable at all.

Tip of the Iceberg

This means actually doing something good while doing something bad.

For example, a brand may promote a product as made of “sustainable” fabrics, even if the rest of their product lines are damaging the environment.

For example, a firm could claim to be environmentally friendly, but not consider supply-chain emissions from a coal-powered overseas factory used to make part of a product.

So, how Greenwashing look like?

Greenwashing can take several forms, which can be:

Selective Disclosure: Companies can highlight positive environmental actions about their products while avoiding any mention of the negative.

Symbolic Actions: Well, basically it means drawing attention to a minor positive action that has little or irrelevant impact to change the overall environmental footprint.

Leakage: Brands may advertise a new product as green even if it has negative effects. For example, Starbucks presented a straw-free lids to avoid wasting plastic, but these new lids used more plastic than before.

Lack of Proof: The company may make claims about its eco-friendliness without sharing certifications or other evidence that prove it.

Vagueness: Brands can greenwash by making broad statements filled with buzzwords about their sustainability that are so vague that they mean nothing.

Irrelevance: Companies greenwash products by making claims that are technically true but irrelevant to their environmental impact. Examples are a paper company that states its products contain “all-natural materials”, but actually most paper does.

Meaningless Labels: Many brands hide behind meaningless “greenspeak” instead of using proper methodologies. Examples include statements like “made with natural ingredients” instead of showing USDA organic certification or saying “vegan approved” instead of showing the product is PETA-certified vegan.