Definition

Greenwashing in business refers to the practice of misleadingly communicating a false or exaggerated impression of environmental responsibility, sustainability, or eco-friendliness in order to attract environmentally conscious customers or present a positive public image.

What is greenwashing?

Companies engaging in greenwashing may use misleading marketing tactics or make misleading claims about their products, services, or overall business practices to create the illusion of environmental administration.

Some companies engage in greenwashing by highlighting symbolic or superficial gestures, such as minimal changes in packaging or marketing materials, rather than implementing substantive and meaningful sustainability practices throughout their operations.

Greenwashing often thrives in situations where companies lack transparency about their environmental practices. Genuine eco-friendly businesses are typically transparent about their efforts and are willing to provide verifiable information about their sustainability initiatives.

Greenwashing can be evident when a company’s overall business practices are inconsistent with the eco-friendly image it promotes. For example, a company may market a specific product as sustainable while its overall business operations contribute significantly to environmental degradation.

One of the primary consequences of greenwashing is consumer deception. Consumers who prioritise environmentally friendly products and practices may make purchasing decisions based on misleading information, ultimately undermining their ability to support genuinely sustainable businesses. Legal actions may be taken against those found to be making false or deceptive environmental claims.

Example of greenwashing