What is Greenwashing and How to Identify It?
Nowadays, with the growing concern over climate change, more customers are willing to pay higher prices for a product or service that promotes “environmentally friendly” practices and procedures. In this sense, sustainability becomes an advantage point for companies as a strategy to attract more customers. However, many companies take advantage of this trend to practice Greenwashing.
Greenwashing is a manipulative tactic aimed at creating a positive image of environmental responsibility without actually adopting sustainable measures, with the objective of making more profit.
It’s important to be aware of the various forms of Greenwashing to detect and avoid putting products and/or services on the market that are not aligned with your consumers’ values. Some examples include:
- Using the color green in packaging or campaigns to convey a commitment to nature and ecology.
- Presenting percentage data informing customers about the amount of recyclable material in the product.
- Not specifying whether such data relates to the packaging or the product inside.
- Using words like “ecological,” “sustainable,” “natural,” among others, without concrete data to prove their authenticity.
- Lacking a genuine seal with real validity in terms of environmental certification.
- Appealing to recycling through representative icons of different recycling points, which prompts the customer to associate the brand with the environment.
Thus, this unfair practice represents a significant problem, as it leads customers to purchase and use products and/or services they believe are ecological when they are not. This practice not only deceives customers into thinking they are positively contributing to the environment but can also result in additional environmental harm.
Out of fear of becoming obsolete, many companies resort to Greenwashing to compete with others that genuinely adopt sustainable practices. Therefore, customers should report companies that practice Greenwashing, especially on social media, due to its significant impact on public opinion. This action can help raise awareness among other customers and pressure companies to adopt more ethical and transparent practices regarding sustainability.
Know the New European Parliament Directive Against Greenwashing
On January 17 of this year, the European Parliament approved a new directive aimed at improving brand labels and prohibiting the use of fraudulent methods to promote products as being ecological, even if only partially, with the aim of protecting consumers from being deceived and enabling them to make more informed purchasing decisions.
The measures included are:
- More accurate and reliable advertising, aiming to reduce the use of certain words related to nature, ecology, and sustainability on packaging.
- Focus on product durability: manufacturers must provide accurate information about product durability. For example, if a product has a lifespan of only 15 days, it cannot be advertised as lasting a month.
According to Biljana Borzan: “This law will change the daily lives of all Europeans! We will move away from the throwaway culture, make marketing more transparent, and combat the premature obsolescence of goods. People will be able to choose more durable, repairable, and sustainable products thanks to reliable labels and advertisements. Most importantly, companies can no longer deceive people by saying plastic bottles are good because the company planted trees somewhere – or saying something is sustainable without explaining how. This is a great victory for all of us!”
In conclusion, one of the main objectives of this measure is to empower consumers to make more sustainable choices by providing them with truthful information through marketing campaigns and advertisements. This includes promoting more durable and repairable products, thus reducing waste and making consumption practices more environmentally friendly. Therefore, companies can no longer deceive customers by claiming to be sustainable without concrete proof; they must effectively demonstrate their commitment to ecology.
How Can Companies Avoid This Unfair Practice?
To avoid practicing Greenwashing, companies must have a solid understanding of the environmental implications of their products and services. It is also essential for companies to be aware that Greenwashing can occur inadvertently when they do not fully understand their own practices. Therefore, it is crucial for companies to be transparent and straightforward when communicating information about their environmental practices to avoid confusing their customers.
There are several strategies that companies can adopt to avoid being accused of Greenwashing:
- Avoid vague language that can lead to ambiguous interpretations about the meaning of environmental statements.
- Be honest with their customers, avoiding distorting the truth or using half-truths about the environmental benefits of products or services.
- Do not use the color green in packaging, products, or marketing campaigns without legitimate justification, i.e., without the products being truly ecological.
- Support percentage claims with concrete and verifiable evidence, thus avoiding unsubstantiated statements.
- Regularly share reports with customers and partners, providing updated information about the company’s environmental practices.
- Set realistic and achievable sustainability goals with defined deadlines for their implementation.
Such practices ensure more honest and transparent communication with customers, promoting true environmental responsibility as well as strengthening trust among various stakeholders.
