What is "Greenwashing"?
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"Greenwashing," according to CNBC, is the branding practice in which brands deceive consumers by naming themselves "environmentally friendly" without including sustainable practices within their business operations. This is a strategy made by companies with the intention of gaining consumers who are seeking to buy more responsibly and sustainably. Over the years, greenwashing has become a widespread issue within multinational companies. Companies like Coca-Cola, Nestle, H&M, and even well-known banks in the US have been accused of malpractice over the years. The video below by NowThisEarth does an excellent job of breaking down this concept.
Where it all started...
Where it all started...
In 1986, the word "greenwashing" was coined by environmentalist Jay Westervelt. He expressed in an essay how ironic hotels were performing the "save the towel" movement, in which hotels would encourage customers to reuse their towels to impact the environment positively. However, Westervelt discovered that these hotels were doing this not to be more sustainable wholeheartedly but to enjoy lower business costs. In addition, these hotels were simultaneously renovating their locations, thus threatening the environment and its ecosystems in the process.
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Image by 89Stocker from Canva
Why do companies do it?
Why do companies do it?
Now that younger generations, such as Millennials and GenZs, are approaching a greener lifestyle, companies see this as an opportunity. In a study, it was found that 66% of consumers would more likely to purchase a product when it is branded as "sustainable." In the same study, it was found that 73% of millennials are more likely to purchase a product from brands claiming to be "green" or "sustainable". An Economic World Forum post states that 75% of GenZs think a brand's sustainability claims are more important than the brand image itself. Greenwashing can be done intentionally or unintentionally despite companies having the right intentions.
The 6 Sins of Greenwashing
The 6 Sins of Greenwashing
Greenwashing is difficult to comprehend and quantify for the majority of people. To conquer this, a scientific marketing agency, TerraChoice Environmental Marketing Inc compiled the 6 Sins of Greenwashing. This list provides the main actions that companies do that are considered greenwashing.
Sin of Hidden Tradeoff
Sin of Hidden Tradeoff
This sin is committed when a company claims a specific product or service is "eco-friendly" by only highlighting a single "green" attribute.
Sin of No Proof
Sin of No Proof
Just as the name suggests, this occurs when a company provides no proof or evidence of it's products being environmentally friendly.
Sin of Vagueness
Sin of Vagueness
This sin is commited when a company fails to disclose further about the environmental impact their product or service brings.
Sin of Irrelevance
Sin of Irrelevance
This sin is committed when a company provides information about product that is irrelevant to the product they're selling, although truthful.
Sin of the Lesser of Two Evils
Sin of the Lesser of Two Evils
This is committed when the product itself is harmful to the environment but companies try to make it appear as less "eco-friendly".
For example, organic cigarettes.
Sin of Fibbing
Sin of Fibbing
This sin is committed when a company completely fabricates information about the product they're selling.
Who are affected by greenwashing?
Who are affected by greenwashing?
Although it may seem that consumers and the environment may be the only stakeholders of greenwashing, it is certainly not completely true. It also affects businesses.
Image by Melanie Lim from Unsplash
Consumers
Greenwashing threatens the trust between consumers and companies about them creating such environmental claims.
Consumers unintentionally contribute to unsustainable practices impacting the environment
Did you know?
Businesses
Greenwashing harms the businesses' brand image and reputation in the industry.
Businesses that are actually advocating for the environment will not be properly incentivized due to the created mistrust between consumers.
Did you know?
68% of America's executives admitted that their companies are greenwashing their customers.
Only 36% of executives claim that their companies actually utilize tools that measure the effectiveness of their sustainability efforts.
Image by Marcin Jozwiak from Unsplash
Image by Sylwia Bartyzel from Unsplash
Environment
Due to spreading misinformation, firms will be incentivized to cause further major environmental problems such as climate change, plastic ocean pollution, air pollution, and the extinction of certain animal species.
Did you know?
70% of plastics produced by the cosmetics industry end up in landfills instead of being recycled.
The majority of 120 million units of makeup packaging produced worldwide are categorized as not recyclable.
How to spot greenwashing?
How to spot greenwashing?
Spotting greenwashing can be pretty tough now that companies are getting more and more creative in their marketing. This is the perfect time to search your home to see if your products contain these greenwashing signs.
- Use of Buzz Words or Fluffy Language
Does the product mention words that claim to have environmental benefits? Companies use buzz words or fluffy language use to entice environmentally-conscious customers. Some of these include but are not limited to:
Eco-friendly
Sustainably sourced
Sustainable
Recyclable
Recycled
Green
Biodegradable
Renewable
- Use of Jargon
Does the product of the company use unfamiliar words or terminologies that the common folk don't use on a regular basis? Jargons are words that professionals typically use in a specific field. If you feel the terms are scientific and can only be understood by scientists, those are probably jargon.
- Lack of Evidences
What do external sources say about the company's sustainability efforts? If the company does not disclose any information about their sustainability efforts on their product description or on their website, chances are that they might be overexaggerating their green claims.
- Eco-centric Product Design or Suggestive Imagery
Does the product packaging contain any designs or colors that are related to nature? Including symbols like leaves, flowers, or trees in the packaging design or logo may be a brand’s tactic on masking the real environmental benefits the product actually has.
- Accountability
Is the company transparent about its business operations? When faced with scandals and issues, does the company take responsibility towards their mistakes? A company who values their consumers and their trust knows that transparency is key in securing a strong relationship with their market.
"... the UN’s most recent climate report shows that we have the solutions needed to do it. However, greenwashing and climate misinformation are taking resources away from real climate solutions and undermining the efforts of scientists and experts. Any more delays will be catastrophic.”
- Anusha Narayanan, Greenpeace USA
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