The Thin Line Between Sustainability and Greenwashing

“Sustainability goals”, “going green”, “recycling”….

Governments, companies, and individuals are being urged to do good for the planet and the environment, and many businesses may become unprofitable without adopting these initiatives.

An IBM survey of almost 20,000 consumers in 28 countries found that almost 60% of the respondents would be willing to change their buying habits for the benefit of the environment.

Unfortunately, this quandary has led to many brands being accused of “greenwashing”, as they proudly market themselves as “eco-friendly” when in fact they are causing more harm than good.

But where is the line between true sustainability and greenwashing?

Why Is Sustainable Marketing Important?

Since regulations came into practice in the 1970s, including those that aim to reduce harmful emissions and encourage the use of sustainably sourced materials, it has become important for businesses to consider environmental efforts.

Sustainability has also been proven to strengthen brand loyalty among customers by allowing them to identify with brands and products, and purchase products that align squarely with their lifestyle philosophies.

Once brand loyalty has been established, it can lead to a boost in profits and public image. And because investors and customers are more likely to invest in and buy from businesses with environmental goals and plans, this can also help them stay in business for the long term.

Beware of Greenwashing

As the demand for eco-friendly goods ramps up, 72% of businesses in North America have acknowledged engaging in “greenwashing,” or intentionally misleading customers into believing their products somehow improve the environment.

Despite the fact that there are laws in place to prevent businesses from making false marketing claims (doing so can result in defamation, lawsuits, and hefty fines), many continue to gamble on brand reputation for profits.

Greenwashed Businesses vs Sustainable Businesses

Oil companies such as Shell and Chevron have had their fair share of greenwashing lawsuits.

Chevron spent big budgets on eco-marketing, showing beautiful images of nature and the company’s efforts towards protecting the environment. However, it was discovered that the company was greatly responsible for damage by dumping oil into natural environments. It also ignored the Clean Air Act and Clean Water Act.

Patagonia, on the other hand, is a good model for companies to look to in terms of sustainability. The outdoor clothing company is very transparent about its efforts. It gives 1% of its profits to initiatives that benefit the planet and society, and uses biodegradable and sustainably sourced materials for its products. It openly talks about its plans for improving in the future.

For example, the brand openly admits to its own carbon footprint and does not try to cover up its flaws. By 2025, Patagonia aims to become entirely carbon neutral and has founded several initiatives, one of which connects consumers with activist groups in their own communities.

To preserve national monuments, Patagonia’s passion for the environment even resulted in the company suing the U.S. president in 2017.

How to Recognize Greenwashing

Companies using vague language without evidence or data to back up claims are most likely guilty of greenwashing.

Detailed background information about the activities of such companies might be hidden, which may give the impression that they’re still complying with regulations regarding transparency. Labels, for instance, might describe a product as being made with “recycled materials,” but the fine print specifies “made with 5% recycled materials,” which begs the question of where the other 95% is sourced from.

In this way, greenwashing companies take advantage of consumers’ unwillingness to do deeper research, and trust that smart eco-labeling can mask their true business practices.

The easiest way to differentiate between greenwashed and authentic sustainable brands is the over-enthusiasm and try-hard methods seen with greenwashing companies.

Businesses guilty of greenwashing tend to promote their wares with lots of eco-friendly language and graphics, but fail to back up their claims with hard facts. A genuinely sustainable company is likely to be one that provides transparent responses to questions about its environmental initiatives.

Although some businesses genuinely care about the planet, others are just riding the eco-marketing wave for financial gain. Nevertheless, authentic, eco-friendly brands certainly exist, proving that sustainability can be pursued.

Being entirely flawless is impossible, but brands that are self-aware and honest about their flaws are far more endearing to consumers than those that claim perfection by selling lies.