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What is Greenwashing?

Uncovering Greenwashing: How to Avoid Misleading Environmental Claims

Today, many companies pride themselves on being “green” and environmentally friendly, but are they really doing enough to safeguard the planet or just aiming to entice customers? Greenwashing is when a company pretends to be eco-friendly despite using toxic ingredients and unsustainable practices for manufacturing its product.

With the growing awareness of the significance of sustainability, it is vital to stay vigilant towards misleading greenwashed marketing strategies that often cover up their lack of environmental practices. The EU Commission's new draft directive on "Green Claims" seeks to crack down on greenwashing and prohibit companies from making unsubstantiated environmental claims about their products. The proposed EU Green Claims Regulation requires companies to ensure that all environmental claims are clear, accurate, and backed by solid evidence.

In this article we delve into the subject of greenwashing, including ways to identify it, showcasing examples in different industries.

In this article, you will find the following topics

1. What is greenwashing?

2. What are some examples of greenwashing?

3. How to identify greenwashing practices?

What is Greenwashing?

Greenwashing, a deceptive marketing practice, has become a prevalent issue in recent times, where companies make exaggerated or false claims about the environmental benefits of their products or services. Such misleading claims often misinform consumers and misrepresent a company’s true environmental impact.

Research carried out in Europe found that 42% of green claims were exaggerated, false, or deceptive, indicating that greenwashing on an industrial scale is a real problem. The practice of greenwashing not only misleads consumers but also harms the environment and human health.

Greenwashing, thus, poses a threat to public health and the environment by spreading confusion and promoting false or exaggerated claims about sustainability. The health implications of greenwashing can include consumers making choices that could harm their health due to false claims about environmentally friendly products.

For instance, purchasing products with harmful ingredients, or avoiding products that could benefit their health. As for the environmental impact, greenwashing can lead to the destruction of natural habitats and biodiversity, pollution, and other harmful effects. Companies often use greenwashing to avoid regulation and boost sales, but they risk damaging their reputation and losing customer trust.

What are some examples of greenwashing?

As companies attempt to appeal to eco-conscious consumers, greenwashing has become a pervasive issue. By using vague, misleading, or false claims about the environmental impact of their products or services, companies create a false impression of their commitment to sustainability. Common examples of greenwashing can be found in the energy, technology and retail sector:

  1. Energy: Despite making pledges to transition to clean energy, four major oil companies – Chevron, ExxonMobil, BP, and Shell – have been found to be falling short in taking concrete steps to achieve their commitments, according to a study published in the journal PLOS One.

    The study analyzed the companies’ annual reports and found that they had increased their usage of terms like “climate,” “low-carbon,” and “transition,” and had developed strategies aimed at decarbonization. However, their actions towards clean energy were primarily limited to making pledges, and the companies continue to be financially dependent on fossil fuels.

    This indicates that companies may be engaging in greenwashing, using climate-friendly language and strategies to appear more environmentally conscious without making substantial changes to their practices.

  2. Technology: Greenwashing, as a deceptive marketing tactic used by companies to portray themselves as environmentally friendly, is a growing concern among consumers of technological gadgets. One example of greenwashing in the IT industry is the way that some companies promote their “green” policies while ignoring the impact of their products on the environment.

    Apple, one of the largest IT companies in the world, has been criticized for its “green” policies, which some believe are only intended to save money. In 2020, the company announced that its latest product, the iPhone 12, would be sold without headphones or a power charger, ostensibly as a way to reduce e-waste.

    However, many consumers were skeptical of this claim, seeing it as a smokescreen for the real problem: planned obsolescence, a practice in which companies deliberately design their products to have a short lifespan. This practice not only generates more sales for the company, but also results in more e-waste, as discarded electronics end up in landfills.

  3. Retail:H&M, a fast-fashion retailer, is considered a greenwashing examples since it has come under fire for greenwashing with its “Conscious Collection” of clothing. The collection is marketed as being produced in a sustainable and ethical manner, but critics argue that the company’s claims are not backed up by sufficient information about its manufacturing practices and overall environmental impact.

A woman looking at a clothing tag at a retail store

How to identify greenwashing practices?

There are a few signs to watch for when attempting to identify and avoid greenwashing practices.

Avoid greenwashing by watching out for vague language in product claims. While terms like “green,” “eco-friendly,” or “sustainable” sound positive, they need to be supported by facts. Look to independent sources like environmental charities to confirm the validity of a company’s environmental claims.

Being transparent is essential to avoid greenwashing practices. If a company is genuinely trying to become more environmentally friendly, they should be willing to provide detailed information about their products and services. When evaluating environmental claims, look for specific numbers and explanations that are meaningful. For instance, a product’s recycled content proportion can indicate whether it will have a significant impact on the environment. Another indicator of a product’s sustainability is whether it has well-known certifications that align with environmental, ethical, or social responsibility standards. For example, a company that is B Corp-certified has met environmental and social requirements.

Latly, it’s important to consider the product’s disposal method. Consumers should be mindful of excessive packaging or packaging that is hard to recycle when making purchases. It is crucial to know if the product’s recyclability claims pertain to the product itself, the packaging, or both before making a purchase. This can help ensure that you are making an environmentally responsible choice.

Lumiform’s solution to verify that your company is environmentally friendly

Lumiform is a software solution that can help combat greenwashing by enabling companies to conduct detailed audits and assessments of their sustainable practices..

With Lumiform’s platform, companies can establish clear and measurable targets to reduce their environmental impact and track their progress. In addition, Lumiform can assist your company in identifying areas for improvement and implementing sustainable solutions to reduce their environmental impact.

In conclusion, Lumiform offers an effective solution to combat greenwashing by allowing companies to conduct thorough assessments of their sustainable practices, establish clear and measurable targets, and take decisive actions to reduce their environmental impact. With Lumiform, companies can foster a culture of transparency and accountability, and work towards a more sustainable future.

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