Explaining Greenwashing and how to avoid falling for it

Written by Yuv Sungkur

We are more aware now than ever before of the impact our daily choices have on the planet. Many companies realise this and want to show customers how they’re helping to protect the planet and reduce their carbon emissions which contribute to climate change. 

However, that doesn’t mean that they’re always telling the truth, or that the changes they’ve made are as positive as they make them out to be. Overstating sustainability is a practice known as greenwashing.

What is greenwashing?

Simply put, greenwashing is a marketing technique used by companies to give the impression that their products, practices and policies are more environmentally-friendly than they actually are. It is used to persuade customers to buy a product or service by suggesting that doing so will help the environment. This can be misleading, because things that might seem environmentally friendly often have a hidden cost to the environment that we’re not aware of.

The practice of greenwashing is not new but it has become more common and harder to recognise in recent times, which can make it difficult to make more sustainable choices about the things that we buy. 

One common form of greenwashing is to bury environmentally unsound practices in the fine print. This can include terminology such as ‘eco-friendly’ or ‘sustainable’, which are non-specific terms that can be used without supporting evidence or regulations. Companies may also utilise images of nature and wildlife to connote environmental friendliness, even when the product is not green.

A 2015 Belgian advertisement for Coca-Cola’s ‘green’ alternative : Coca-Cola life

Why greenwashing works?

The rising global awareness of environmental issues has prompted companies to place a greater emphasis on promoting their sustainability credentials, as they believe being seen as ethical drives profitability.

Evidence shows consumer sentiment is moving toward being environmentally sustainable. A report by McKinsey found that Gen Z is more likely to spend money on ethical companies. So, companies have a financial incentive to appear to be more environmentally conscious.

The effects of greenwashing

Greenwashing takes up valuable space in the fight against environmental issues since it masks the inaction of not becoming more sustainable. It also misleads investors and consumers that are genuinely seeking environmentally-friendly companies or products. 

Conclusion

So how can we fight it? While there is usually no evidence to back up the claims that a company is making, as a customer, you can always look out for vague claims, and support your statements and thoughts by doing research to make sure any claims of ‘eco-friendly’ products are verified by a notable third party.