How harmful is “greenwashing”?

Greenwashing isn’t a new concept, but it’s being scrutinised now more than ever. In line with a wider focus on environmentalism in society, businesses of all sizes are held accountable for their actions unlike at any other time in history. Public pressure continues to mount with the transparency offered by the internet and globalisation.

ESG is a key aspect of business and corporate law continues to define the boundaries of what is expected. But what exactly is greenwashing and how is it impacting consumers and the environment?

What is greenwashing?

Greenwashing occurs when a company makes misleading or falsified claims about the environmental
benefits of a process, product or service. It can also take place when companies promote their green
initiatives to draw attention away from other damaging areas of operation. Such attempts can be
flagrant, while others can be more subtle or unintentional.
There have been plenty of famous cases over the last few decades. Oil giant BP released a personal
emissions calculator for people to evaluate their carbon footprint in the early 2000s, despite being
one of the biggest polluters on the planet. Ryanair has recently faced pressure to change their slogans
that claimed they were a sustainable flying option.
Companies can be tempted to greenwash to profit from the lucrative market of environmentalism
while keeping other harmful activities out of the limelight. Some cases are less blatant, where
companies fail to meet their own progressive objectives through incompetent management and a
lack of insight.

How can greenwashing occur?

Attempts to promote, exaggerate or even subtly falsify environmental benefits can be done in many
ways. Some businesses include vague buzzwords such as “natural”, “eco-friendly” or “green”
without justifying how they can use such terms.
Marketing and branding practices are hotbeds for greenwashing. Advertising and packaging
including natural and environmental imagery is common, even where no attention has been paid to
the impacts of a product or service.
Drawing attention away from damaging business operations with green initiatives, unrealistic
emissions targets and unfulfilled sustainability strategies has been done by some of the world’s
leading carbon emitters, who are notoriously more worried about their bottom line.

How does greenwashing impact consumers?

Many people want to contribute to the fight against climate change and their consumption habits
are one of the most influential tools available to them. When companies mislead consumers to buy
products that aren’t in line with their interests, this steals some of their ability to make a difference.
Greenwashing also undermines consumer faith, potentially reducing spending across whole
industries and markets. This can harm the efforts of companies actually taking steps to protect the
planet which is a real shame for all stakeholders.

How does greenwashing impact the environment?

One of the most damaging impacts of greenwashing is that it can shield companies and products
that are harmful to the environment, sometimes even increasing investment in those supply chains.
People may not want to act unsustainably, but if they’re making a choice based on misleading
claims, the environment pays the biggest price.
As products become more popular, some inflated by false pretences, operations tend to expand –
increasing impacts on local and global environments. While companies can profit from the
appearance of environmental activism, the planet only encounters further losses.