Greenwashing – 5 most common practices used by companies
What is greenwashing?
Greenwashing often relies on manipulating information or selectively presenting facts. Such actions not only mislead B2B customers and consumers but can also damage a company's reputation. It’s worth noting that, according to the Consumer Empowerment Directive and Green Claims Directive, misleading practices related to environmental claims are prohibited and can lead to legal consequences. What are the most common greenwashing practices?
Vague or generalized environmental claims
Companies use phrases like "environmentally friendly," "green," or "natural" without providing specific evidence or certifications to back up these claims.
Hiding full environmental impact (selective disclosure)
Highlighting one positive aspect of a product (e.g., biodegradable packaging) while ignoring the significant pollution caused by production or transport processes. This practice falls under the so-called "sin of hidden trade-offs."
Misleading labels and certifications
Using self-created symbols or terms suggesting eco-certification that are not recognized by independent organizations. The Green Claims Directive will mandate that all environmental claims be verifiable and evidence-based.
Greenwashing through carbon offsets
Claiming carbon neutrality through the purchase of offsets while failing to take real action to reduce operational emissions.
Ad campaigns masking negative impacts
Creating “green” marketing campaigns to divert attention from actual environmental issues, such as emissions from fossil fuels, environmental destruction, or overproduction of waste.
How to counteract greenwashing?
Greenwashing harms not only a company’s reputation but also undermines trust in sustainable development initiatives. Therefore, in ESG, striving for transparency and authenticity is crucial. What can help in achieving this?
- Verification of data through independent audits.
- Increasing transparency in ESG reporting, including publishing specific and measurable goals.
- Further development of sustainability regulations, such as the EU Taxonomy.
Implement ESG in your company – learn how we can help!
