What Does
Greenwashing Mean?
Greenwashing is a marketing practice that makes false or misleading claims about the environmental sustainability of a product or business.
Examples of corporate greenwashing include:
- Packaging design or color schemes that connote sustainability (such as nature scenes or liberal use of the color green)
- Using buzzwords like “green” or “clean” when describing a product that is not meaningfully sustainable
- Claiming to be “committed” to sustainability without actions or initiatives to back up that commitment
- Taking part in superficial sustainability initiatives while continuing to engage in polluting activities
Greenwashing is also known as the green sheen.
Safeopedia Explains Greenwashing
The term “greenwashing” was coined in 1986 by environmentalist Jay Westerveld. He used it to describe a hotel’s claim that it encouraged guests to reuse towels in order to “save the environment,” when they were in fact attempting to put a positive spin on their efforts to reduce their laundering costs.
Why do Companies Greenwash?
Some of the factors that drive companies to create the appearance that they are environmentally sustainable include:
- Regulations – Permissible market regulations and a lack of penalties for greenwashing allows businesses to mislead customers and clients without any direct risk.
- Monitoring agencies – Several bodies monitor greenwashing, such as the United States Federal Trade Commission (FTC), the UK’s Advertising Standards Authority (ASA), and the Canadian Standards Association (CSA). Organizations headquartered in jurisdictions without such monitoring agencies operate under less scrutiny and may be emboldened to make misleading environmental claims.
- Market demand – Competition, investor pressure, and consumer demand can push a company to make stronger environmental claims, whether they can support them or not.
- Public scrutiny – Some industries are under greater public scrutiny than others. Consumer goods, for example, receive more popular attention than materials supplied to corporations. Larger corporations with established brands also tend to discussed more than less recognizable ones.
How Companies Greenwash
Some types of greenwashing include:
- Providing incomplete information, such as claiming to use recycled materials without disclosing the environmental damage that results from sourcing the material
- Making false claims, often by using terms like “environmentally friendly” or “sustainably sourced,” which don’t have strict industry definitions
- Declaring partial truths, like claiming to reduce emissions but only disclosing emissions from one part of the operation, not the entirety of the company’s activities
Ready to learn more? Check out our free webinar on 5 Essential ESG Principles You Need to Understand!
Sign up to the Safeopedia Newsletter to get more great safety info delivered right to your inbox!