What is greenwashing and how can it damage your reputation?
Tools & Resources
Key learnings
- Green marketing enhances credibility and delivers real environmental benefits, while greenwashing undermines consumer trust and can lead to regulatory penalties and reputational harm.
- Greenwashing can be active or passive.
- 78% of customers feel that sustainability is important and 73% are willing to pay more for sustainable products.
With ethical consumerism on the rise and climate change at the forefront of many discussions, there is an intensifying need for businesses to improve their unsustainable behaviours.
As companies adapt, they are increasingly promoting their green credentials as part of a green marketing strategy which can positively affect brand image and increase sales.
While green marketing can bring benefits, done insincerely it can lead to damaged reputations with companies increasingly called out and shamed for misleading customers through a practice known as greenwashing.
Click each of the headings below to find out how greenwashing differs from green marketing and how you can benefit from sustainable practices while avoiding the possibility of being called out for greenwashing.
1
What is greenwashing?
Greenwashing isn’t a new concept. In fact it’s been around since the 1980s when oil producers were first accused of depicting their companies as environmentally friendly by showing adverts of staff protecting Sea Turtles, while simultaneously violating many environmental acts.
Greenwashing can be defined as a form of marketing PR that suggests the organisation is more sustainable than they actually are.
Greenwashing can occur at two levels: passive or active.
The first passive action or communication involves information selection or attention diversion projecting the image of a company as more sustainable.
The second active action or communication involves deliberately making claims and marketing those claims to deceive customers, such as the Volkswagen emissions scandal. Active deception, if proven, can have significant legal and financial consequences.
2
Similarities and differences between green marketing and greenwashing
Green marketing and greenwashing are terms that are often confused, but they have distinct meanings and implications. Both involve promoting environmentally friendly products and practices, yet their intent and impact diverge significantly.
Green marketing is an authentic effort by businesses to promote their genuinely sustainable products and practices. It involves transparent communication about eco-friendly initiatives, aiming to build trust and long-term loyalty among consumers who prioritise sustainability.
Conversely, greenwashing is a deceptive practice where companies exaggerate or falsify their environmental efforts to appear more sustainable than they truly are. This often involves misleading claims, vague language, or selective disclosure of information, aiming to capitalise on the growing market for green products without making substantial environmental contributions.
While both strategies leverage the demand for sustainability, green marketing builds credibility and genuine environmental benefits, while greenwashing erodes consumer trust and can result in regulatory penalties and reputational damage.
Understanding these differences is crucial for businesses aiming to foster genuine sustainability and avoid the pitfalls of deceptive practices.
3
Greenwashing practices to avoid
Green labelling – Avoid using colours and symbols associated with sustainability unless there is a genuine connection or verified certification. Simply adding an earth symbol for design features can cause more damage than not including anything.
Green lighting – If you have a wide product range, do not focus all your marketing on only sustainable products. Feature all products evenly to avoid being accused of green lighting.
Greenshifting – Your customers are not responsible for your sustainable actions. Do not pass the blame onto them by asking them to consume responsibly or to use carbon offsetting tools as a result of your actions.
Green Rinsing – If you set sustainability targets, be realistic, stick to them and provide a report even if you missed the target. Many large organisations set unrealistic targets to appear more sustainable, then simply change the parameters before the reporting period to avoid reporting unmet targets. These are often then replaced with even more unattainable goals.
Green Crowding – If you are genuine about sustainability you need to lead from the front, go beyond duty and make real change. Many companies claim to be sustainable and then simply hide among other similar organisations, adopting the pace of the slowest adopter.
Green Harvesting – This involves cost cutting activities undertaken by a company with no savings passed to the customer as an inferior service is offered in the name of sustainability. Examples of this is when hotels stop washing towels daily, saving considerable energy costs which are not passed onto the customer. The hotel continues excessive pollution in other areas and promotes the activity as sustainable when the true motive was cost reduction.
Now you’ve got an awareness of what to avoid in your green marketing strategy, you can start to put together a marketing plan that truly reflects your green credentials and reap the rewards of consumers looking for purpose-driven brands.
Remember, to be genuine in your promotional material, don’t over-exaggerate and lead from the front.
Next steps…
- Critique any marketing that highlights sustainability and decide if you need to adapt it now that you know more about greenwashing.
- Read our article on how the UK's Advertising Standards Authority (ASA) guidance affects your advertising for further tips on staying compliant.
- Visit the ASA resource hub for environmental advertising for more advice on specific claims, and use their free copy check service for peace of mind.