In today’s world, where sustainability can easily be used as a marketing tactic, distinguishing genuine efforts from greenwashing is essential. Greenwashing—where institutions exaggerate or fabricate environmental claims—erodes consumer trust, damages reputations, and undermines the sustainability movement.
Many businesses use superficial strategies to comply with environmental regulations, aiming to appear responsible without embedding sustainability into their core operations. For example, H&M was criticized for overstating the environmental benefits of its “Conscious” line. The Environmental Working Group (EWG) sued Tyson Foods for falsely marketing its beef products as “climate-smart” and claiming it would achieve net-zero emissions by 2050. The lawsuit highlighted Tyson’s significant emissions and lack of substantial efforts to reduce them, accusing the company of prioritizing advertising over meaningful climate action
Even sectors like finance are increasingly at risk of environmental litigation. Greenwashing harms not just the company involved but the entire industry, creating skepticism among consumers. When one brand misleads, it tarnishes others, even those with legitimate green practices. Once accused, companies face a long road to rebuild trust, risking customer loyalty and market share.
So how can organizations do it better? Rare’s BE.Center recently conducted a landscape analysis of studies examining greenwashing and compiled this tip sheet to help groups identify and avoid greenwashing and build trust through authentic sustainability efforts.
1. Identifying Greenwashing: Watch for Red Flags
Companies that engage in greenwashing often rely on vague or misleading claims. Researchers have developed a comprehensive tool for evaluating environmental claims made by organizations, focusing on whether they are genuine or deceptive. Below are some common greenwashing tactics highlighted in the study that businesses should avoid:
- Vague Claims: Phrases like “all-natural” or “eco-friendly” without specifics.
- Selective Disclosure: Highlighting positive environmental aspects while omitting negative ones.
- False Labels: Certifications or labels that lack clear third-party validation, often giving a false sense of credibility.
- Nature-Themed Imagery: Ads that rely on visuals of forests, water, or animals without explaining the company’s actual environmental impact can mislead consumers. This study found that while these nature-themed ads can create the illusion of eco-friendliness, they can be countered by providing clear and specific environmental performance information.
2. Know How Greenwashing Manifests: It might be who companies partner with
Greenwashing can take several forms, each with varying degrees of harm. Companies should be wary of three main forms as detailed in this study.
- Direct: The company’s own practices contradict its green claims—this is the most damaging.
- Vicarious: A company partners with suppliers that don’t follow environmental standards, impacting its reputation by association.
- Indirect: When suppliers—not the company itself—engage in misleading practices, it can still harm the company’s credibility.
3. Don’t Let Your Website be a Greenwashing Trap
In the online world, misleading sustainability claims can spread fast.This study found when people perceive a company is being misleading about being eco-friendly, it’s related to how they feel when using the company’s website. To tackle this the researchers suggest:
- Make the website easy to understand and interactive: Consumers trust websites that offer clear, accessible information. Third-party-verified details on sustainability efforts go a long way.
- Don’t leave them guessing: A lack of specific information on your environmental impact leaves room for doubt—and doubt leads to distrust.
4. Rebuilding Trust After Greenwashing: Steps to Recovery
Hopefully, it never comes to this for companies because they do not engage in greenwashing in the first place. For those that do, rebuilding trust is paramount. This can only be done through authentic action. This study makes recommendations on the steps that can be taken to regain consumer trust after greenwashing:
- Own it and apologize: Acknowledge mistakes and offer clear explanations of what went wrong.
- Take real action and prove It: Invest in genuine sustainability initiatives and back them up with reliable eco-certifications to reinforce your commitment and credibility.
How to Avoid Falling into the Greenwashing Trap: Tips for Organizations
- Commit to sustainability: Prioritize long-term environmental strategies over short-term marketing gains.
- Integrate sustainability throughout: Ensure that sustainability is embedded into every aspect of your business, not just as a marketing message.
- Vet your supply chain: Make sure your suppliers maintain the same environmental standards to avoid vicarious and indirect greenwashing.
- Be transparent: Offer specific, detailed information about your initiatives, supported by third-party certifications.
- Engage authentically: Build genuine, lasting relationships with customers by being honest about your sustainability journey.