In today’s day and age, a mention of CSR is incomplete without a mention of greenwashing. Greenwashing refers to the practice of making false or exaggerated claims about a company's environmental performance or commitment to sustainability. This can be a misleading tactic used to appeal to consumers who are increasingly concerned about environmental issues. There are several ways that greenwashing is carried out- most of which boil down to making irrelevant claims, using overinflated phrases, and lacking proof.
Use of irrelevant claims
Companies may highlight small environmental initiatives, while ignoring larger issues within their organization. For example, H&M claims that its ‘Conscious’ clothing line is made from sustainable materials, but in reality, the line makes up only a small fraction of the company's overall production, which comprises fast fashion. This type of greenwashing can be difficult for consumers to detect, as it can appear as if the company is taking significant steps towards sustainability. However, discernment is key. While a company may offer certain sustainable products or operate in environmentally- friendly ways, what about those products or operations that are not sustainable? If the latter comprises a significant portion of the company's portfolio, it could be indicative of greenwashing. In other words, companies that prioritize marketing their sustainable efforts over actually implementing them in a substantial way could be engaging in greenwashing tactics.
Use of overinflated phrases
Companies may use buzzwords or phrases that suggest they are more environmentally friendly than they actually are. For example, in 2019, Nestle claimed to be using sustainable cocoa under its "sustainably sourced cocoa" initiative; but, a California lawsuit found that usage of child labour in Nestle’s cocoa supply chain had in fact increased after the initiative. This type of greenwashing can be particularly effective, as consumers are often attracted to companies that appear to be leaders in sustainability. To determine the credibility of such sustainability claims, consumers can:
- look for third-party sustainability certifications and labels on the company’s products or website, such as the Forest Stewardship Council or Energy Star.
- use websites like EcoLabel to test the actual eco-friendliness of the product
Lack of proof
Companies may make vague or unsubstantiated claims about their products without providing any information or evidence to back up those claims. For example, in 2018, Starbucks announced that it would phase out plastic straws and instead top all its cold drinks with fancy new strawless lids. While this move was marketed as a way to reduce plastic usage in the product, the largely unnoticed reality was that the new lids used more plastic compared to the previous lid-straw combination. This type of greenwashing can be harmful, as it can lead consumers to believe that the product is more environmentally friendly than it actually is. To avoid supporting such greenwashing practices, adopting an evidence-based mindset when purchasing products is crucial. By doing their own independent research and seeking concrete evidence to back up environmental claims, consumers can make informed decisions and hold companies accountable for their actions.
One effective way to identify greenwashing, regardless of the specific tactics used, is for consumers to research a company's environmental initiatives and track record to ensure that their claims are legitimate. If you're unsure about a company's commitment to sustainability, doing some research can go a long way in helping you make an informed decision as a consumer.
To conclude, I’d love to go back to one of my favourite slogans about sustainability and social impact: impact follows the money. Do you, as a consumer, want the impact of your money to be a a healthier environment and community, or to be a contribution to the problem? Your answer lies in knowing and buying against greenwashing.
Written by Kavya Sangam