What Is Greenwashing? Greenwashing In A Nutshell

Environmentalist Jay Westerveld first coined the term “greenwashing” in 1986 at a time when most consumers received their news from television, radio, and print media. Some companies took advantage of limited public access to information by portraying themselves as environmental stewards – even when their actions proved otherwise. Greenwashing is a deceptive marketing practice where a company makes unsubstantiated claims about an environmentally-friendly product or service.

Aspect	Explanation
Definition	Greenwashing is a deceptive marketing practice in which a company, organization, or product presents itself as environmentally friendly, sustainable, or green to appeal to environmentally conscious consumers while exaggerating or misrepresenting the extent of its environmental efforts. The term is a portmanteau of “green” (associated with environmentalism) and “whitewashing” (to cover up or gloss over negative aspects).
Motivation	Companies engage in greenwashing for various reasons, including improving their public image, attracting environmentally conscious consumers, and gaining a competitive edge in the market. It can also be a response to regulatory pressures and consumer demand for eco-friendly products and practices.
Common Examples	Greenwashing can manifest in different ways, such as: 1. Misleading Labels: Using deceptive labels or certifications that imply environmental benefits without proper verification. 2. Vague Terminology: Using vague terms like “natural” or “eco-friendly” without clear definitions. 3. Hidden Trade-Offs: Focusing on one environmental aspect while neglecting others. 4. Irrelevant Claims: Making environmental claims unrelated to the product (e.g., “CFC-free” on products that never contained CFCs).
Impact	Greenwashing can have several negative impacts, including: 1. Consumer Deception: Consumers may make choices based on false information, leading to disappointment. 2. Undermining Legitimate Efforts: Genuine eco-friendly products and practices may lose credibility. 3. Erosion of Trust: It can erode trust in businesses and make consumers skeptical of environmental claims. 4. Environmental Harm: In some cases, greenwashing can perpetuate harmful practices.
Detection	Detecting greenwashing often requires consumer awareness and critical evaluation. Consumers can look for third-party certifications, such as the USDA Organic label or ENERGY STAR certification, as well as transparent disclosure of environmental efforts and impacts. Organizations like Greenpeace and the Federal Trade Commission (FTC) also monitor and take action against greenwashing.
Regulations	To combat greenwashing, governments and regulatory bodies have implemented guidelines and regulations. For example, the FTC in the United States has issued the Green Guides, which provide recommendations for truthful and non-deceptive environmental marketing. Violators can face fines and legal action.
Corporate Responsibility	To avoid greenwashing accusations, responsible companies focus on genuine environmental efforts, such as reducing carbon emissions, minimizing waste, and sourcing sustainable materials. They also engage in transparent reporting and seek credible certifications.
Consumer Role	Consumers can play a role in addressing greenwashing by staying informed, supporting businesses with authentic sustainability practices, and reporting suspected cases to relevant authorities. Consumer activism can influence companies to adopt more responsible practices.
Transparency	Transparency is a key element in combating greenwashing. Companies should provide clear, accurate, and verifiable information about their environmental initiatives. This includes disclosing their sustainability goals, progress, and the methodologies used to measure and report their environmental impacts.
Sustainable Practices	True sustainability involves adopting practices that reduce environmental harm and have a positive impact. These practices may include energy efficiency, renewable energy adoption, waste reduction, ethical sourcing, and support for biodiversity.
Ethical Marketing	Ethical marketing entails honesty, integrity, and accountability in communicating a company’s environmental efforts. This approach involves avoiding exaggerations, deceptive claims, and misleading visuals in marketing materials.

Table of Contents

Understanding greenwashing

One such company was Chevron, which produced a series of television and print advertisements in an attempt to convince the public of its green credentials.

Various ad campaigns depicted Chevron employees appearing to protect bears, sea turtles, and butterflies, among many other animals.

The commercials had their desired effect, with the company winning an Effie advertising award in 1990.

Later, Chevron’s dubious claims were made the subject of a Harvard Business School study.

The study became notorious among scholars and environmentalists alike, who proclaimed the company to be the gold standard of greenwashing.

Greenwashing is the corporate practice of making sustainability claims to cover a questionable environmental record.

Companies use greenwashing techniques when promoting their products to appeal to the environmentally-conscious consumer, with buzzwords such as “sustainable”, “ecofriendly”, and “natural” frequently cited.

There may be some degree of truth in the environmental claims an organization makes.

However, these claims are deliberately exaggerated or misrepresented to mislead consumers for financial gain.

The six sins of greenwashing

In an earlier 2007 study, environmental firm TerraChoice examined thousands of products from six category-leading big box stores.

The study, which aimed to describe, understand, and quantify the growth of greenwashing, found there were six common greenwashing patterns (or sins):

Hidden trade-offs

Where a company suggests a product is green based on a single environmental attribute while ignoring other, more important issues.

For example, paper towel and copy paper is promoted as being made from recycled or sustainable timber with no mention made of manufacturing impacts such as air or water pollution.

No proof

Where a claim is made that cannot be substantiated by easily accessible information.

Household lights and lamps are promoted as energy efficient without any real evidence backed by hard data.

Shampoos and other personal care products also claimed they were not tested on animals with little supporting evidence.

Vagueness

These are claims that are so poorly defined that their meaning is likely to be misconstrued by consumers.

Companies that claim their products are “chemical-free” are misleading because chemicals are found in everything from plants and animals to water.

Similarly, “non-toxic” claims are vague because every substance is toxic in the correct dosage.

Irrelevance

Irrelevant claims may be truthful but are unimportant and unhelpful to consumers seeking green products.

Products that promote themselves as chlorofluorocarbon (CFC) free are irrelevant since their use has been banned for decades.

Lesser of two evils

These are “green” or “organic” products that may hold true within their category but that risk distracting the consumer from the more significant impacts of the category as a whole.

Organic tobacco is touted as a green alternative to normal tobacco, but it still poses the same health risks for the smoker.

Fibbing

As the name suggests, these claims are simply false. Less than 1% of the products in the study displayed this pattern.

Nevertheless, a dishwasher detergent purporting to be packaged in 100% recycled paper was made from plastic.

Several shampoo products also claimed to be organic, but the researchers did not find evidence of any such certification.

Case Studies

Volkswagen (VW) Dieselgate Scandal (2015):
- Claim: Volkswagen marketed its diesel vehicles as eco-friendly with low emissions.
- Reality: VW installed software that manipulated emissions tests, causing the vehicles to emit harmful pollutants far above legal limits.
BP’s “Beyond Petroleum” Campaign (2000s):
- Claim: BP (British Petroleum) rebranded itself as an environmentally responsible company, emphasizing its commitment to renewable energy.
- Reality: BP continued to be primarily an oil and gas company, and its environmental efforts were a small fraction of its business.
ExxonMobil’s Green Ads (2000s):
- Claim: ExxonMobil ran ads showcasing its efforts to reduce greenhouse gas emissions and develop cleaner fuels.
- Reality: The company faced criticism for downplaying climate change research and its significant contributions to carbon emissions.
Bottled Water Companies:
- Claim: Many bottled water companies market their products as environmentally friendly or “pure.”
- Reality: Bottled water production has significant environmental impacts, including plastic waste and energy consumption.
Fast Fashion Brands:
- Claim: Some fast fashion brands promote “sustainable” clothing lines.
- Reality: These brands often use unsustainable manufacturing processes, exploit workers, and contribute to textile waste.
Single-Use Plastics Bans by Some Companies:
- Claim: Some companies announce bans on single-use plastics to appear eco-friendly.
- Reality: These bans may focus on a small portion of their plastic use, while the majority remains unchanged.
Food Products with “Natural” Labeling:
- Claim: Food products labeled as “natural” suggest they are healthier and more environmentally friendly.
- Reality: “Natural” labeling is often unregulated and can be applied to products with synthetic additives.
Fast Food Chains and Recycling Initiatives:
- Claim: Fast food chains highlight recycling programs and efforts to reduce waste.
- Reality: Critics argue that fast food packaging and waste remain major environmental issues for these chains.
Fashion Brands and Sustainable Collections:
- Claim: Some fashion brands introduce “sustainable” clothing lines.
- Reality: These brands may continue unsustainable practices in their main collections, while the sustainable lines represent a small fraction of their offerings.
Electric Car “Green” Claims:
- Claim: Some electric car manufacturers market their vehicles as completely green and emissions-free.
- Reality: The environmental impact of electric cars depends on factors like electricity sources and battery production.

Key takeaways

Greenwashing is a deceptive marketing practice where a company makes unsubstantiated claims about an environmentally-friendly product or service. The phrase itself was coined in 1986 around the time oil company Chevron was making false claims about their environmental credentials.
There may be some degree of truth in a greenwashing campaign, though the intent of the company is always to mislead consumers for financial gain.
Greenwashing was discovered to occur across six common patterns, or sins. These include hidden trade-offs, no proof, vagueness, irrelevance, the lesser of two evils, and fibbing.

Key highlights and takeaways about greenwashing:

Definition of Greenwashing: Greenwashing is a deceptive marketing practice where a company makes unsubstantiated claims about an environmentally-friendly product or service. It involves portraying the company as environmentally responsible, even when their actions don’t align with these claims.
Origin of the Term: The term “greenwashing” was first coined in 1986 by environmentalist Jay Westerveld. It emerged at a time when consumers primarily relied on television, radio, and print media for news and information.
Chevron’s Example: Chevron, an oil company, is cited as an example of greenwashing. They ran advertising campaigns that depicted their employees as environmental stewards protecting various animals. These campaigns won awards but were later exposed as misleading.
Harvard Business School Study: Chevron’s greenwashing claims became the subject of a Harvard Business School study, which gained notoriety among scholars and environmentalists. Chevron was considered a prime example of greenwashing.
Purpose of Greenwashing: Companies engage in greenwashing to appeal to environmentally-conscious consumers. They use terms like “sustainable,” “ecofriendly,” and “natural” to promote their products, even if the environmental claims are exaggerated or misleading.
The Six Sins of Greenwashing: In a 2007 study by environmental firm TerraChoice, six common patterns or “sins” of greenwashing were identified:
- Hidden Trade-offs: Promoting a single environmental attribute while ignoring other important issues.
- No Proof: Making claims that cannot be substantiated with accessible information.
- Vagueness: Using poorly defined claims that are likely to be misunderstood.
- Irrelevance: Making truthful but unimportant claims about a product’s environmental impact.
- Lesser of Two Evils: Promoting a product as green within its category but diverting attention from broader environmental issues.
- Fibbing: Making false claims, although this is relatively rare.
Key Takeaways: Greenwashing is a practice that aims to mislead consumers for financial gain. Companies may include some element of truth in their claims, but the overall intent is to deceive. It’s essential for consumers to be aware of the six common patterns of greenwashing to make informed choices.