What is Greenwashing? Understanding the Basics
Fraudulent practices in business dealings are as old as trade itself. All along history, there have been countless tales of businesses deceiving customers, enticing them with tall claims and exaggerated advertising campaigns. Underhanded schemes have tricked and trapped many, resulting in damaged trust.
These deceptive tactics have made consumers wary and there is now a higher motivation among buyers to educate themselves.
Consumers are also now increasingly eco-conscious and expect businesses to be so too. Demands for sustainability in businesses, as well as their products and packaging, are picking up. To satisfy these customers and retain their loyalty and in a bid to improve sales, some companies have resorted to, a relatively newer scam called “greenwashing”.
Read on to find out what it actually is and how it can be avoided.
What is greenwashing?
Greenwashing is when a company falsely claims through different marketing tactics that it is a planet-friendly organisation. It uses advertising campaigns to convince customers that its practices are sustainable and environmentally conscious. A false impression that the company is doing its best to reduce its negative impact is created.
They not only make grand statements about their policies but also create cover-ups for any of their actions that are hazardous to the environment. Such businesses resort to these tactics to attract buyers who are looking for sustainable products and eco-friendly brands.
The term “greenwashing” was first used by renowned environmentalist, Jay Westerveld, in his 1986 essay. He explained that hotels claiming to reuse towels to reduce environmental impact were in reality doing so only to cut costs. Since then, the term has been used for any business that makes false claims about its planet-friendliness.
Types of greenwashing
Attempts at greenwashing need not be very obvious. There can be subtle or manipulative messages that give the impression of the brand being planet-friendly.
Let us look at some greenwashing examples that can help consumers identify them better.
Greenwashing Examples
Using images from nature
A plastic water bottle company could use images of clean and green natural habitats on its packaging to give the impression that its products are environmentally friendly. Yet we all know how that same bottle contributes to plastic pollution.
Being vague on the packaging
A brand could label its products as "natural," which is a term that does not have a standardised definition. Without clear criteria or detailed ingredient lists, consumers can be left uncertain about what "natural" actually means for these products.
Making claims without proofs
If a company claims it is eco-friendly or sustainable but does not back it up with proof, there is no way to verify these assertions.
Greenwashing in fashion
Hidden Trade-offs
A fashion brand could be marketing its new line as made from organic cotton, emphasising the environmental benefits of organic farming. However, all their clothes need not be made of sustainable materials. They also avoid mentioning the excessive water usage and poor labour conditions that are part of their overall production process.
Similarly, they could boast about their eco-friendly packaging but completely brush over their unethical business practices.
Misleading Certifications
A fast fashion company could be using self-created eco-labels or certifications to imply third-party endorsement of its sustainability claims. In reality, however, these labels are not verified by any independent organisation and can mislead consumers into believing the products are more sustainable than they actually are. Genuine certifications from recognised organisations provide a more reliable indication of sustainability.
Emphasis on Recycling Programs
There are fashion brands that promote in-store recycling programs, encouraging customers to return their old clothes for recycling. Unfortunately, these programs have limited capacity and impact, while the brand’s overall production continues to generate significant waste. Such programs serve as marketing tools to distract from the broader issues of overproduction and wastefulness in the brand’s operations.
How to avoid greenwashing
The obvious and most effective way is to educate yourselves and create awareness around the issue. Companies could just be throwing environmental buzzwords around to sound responsible. If a brand is making a claim, look for evidence that backs it up. There must be some certification or proof that lends the claim weight. The absence of such proof is a clear sign that there is some deception at hand.
These sneaky ploys not only mislead conscientious consumers but also detract from the efforts of genuinely sustainable businesses.
Innovative materials like CELYSTM compostable fibre can help address the greenwashing issue in fashion by providing a genuinely sustainable alternative to traditional materials.
True to its claim, CELYSTM offers a verifiable solution that reduces landfill waste and relies on renewable resources. This is because it can fully degrade under industrial composting conditions within 179 days and has certifications such as a “Compostable Certificate” from BPI to prove it. This transparency and authenticity can help consumers make truly eco-friendly choices, countering the superficial and often deceptive claims of greenwashing in the fashion industry.
FCA anti-greenwashing rule
FCA, the Financial Conduct Authority, has introduced rules to tackle greenwashing, with the aim to protect consumers and ensure genuine sustainability. The following are the main points:
- Firms must provide clear, accurate, and detailed information about the environmental impact and sustainability credentials of their products.
- Environmental claims must be substantiated with credible third-party certifications.
- Broad terms like "green" or "sustainable" must be supported by specific, verifiable information.
- Detailed reporting on the product's entire lifecycle, from sourcing to disposal, is required.
- Marketing materials must consistently reflect verified sustainability claims.
- The FCA conducts regular audits to ensure compliance and may impose penalties for non-compliance.
At the same time, the FCA has started educating consumers on identifying greenwashing and making informed decisions.
Conclusion
When a brand engages in greenwashing, it is not only risking its own reputation but also doing the truly sustainable brands a serious disservice. It is creating an unfair competition for the “eco-friendly” ones and creating a feeling of wariness and distrust amongst consumers.
It is therefore imperative to understand the nuances of greenwashing so that we support businesses that truly embody environmental responsibility and planet friendliness.
