Greenwashing is a misleading marketing strategy used by companies to project a false image of sustainability and environmental responsibility — whether through advertising campaigns, hiding data, or placing misleading/uncertain information on product labels to improve their reputation by taking advantage of consumers’ growing environmental awareness.
Businesses use it to boost their profit margins and give the impression that they care since they know that consumers who care about the environment are prepared to pay extra for sustainable goods.
WHERE DID IT COME FROM?
Sustainability became a growing concern for all stakeholders, including customers, suppliers, employees, and the local community, as businesses worldwide began to care about environmental challenges. Eco-friendliness and sustainability are in right now. Greenwashing is one example of this.
The term “greenwashing” was first used by Jay Westerveld, an environmentalist in the 1980’s, referring to a hotel policy about reusing towels ‘to help the environment’. While the hotel itself did nothing significant in terms of sustainability. This led to the idea that the company was ‘greenwashing’ its practices.
So, here are 9 brands you should think twice before buying from again.
CARS AND FUEL: VOLKSWAGEN, TOYOTA AND SHELL
In 2015, the giant Volkswagen was accused of falsifying emission test results for its diesel engines. The company allegedly cheated inspections on more than 10 million vehicles. In reality, the engines were releasing 40 times the nitrogen oxide permitted by the Environmental Protection Agency (EPA), BBC said. After the incident, the president of Volkswagen resigned, and the company admitted to the accusations. Volkswagen has had the largest greenwashing fine to date with costs of approximately $30 billion. Six employees also faced criminal charges in the U.S.
“Toyota had to pay a $180 million fine for hiding defects that increased pollutant emissions, while promoting vehicles as eco-friendly that emitted up to 40 times more NOx (nitrogen oxide pollutants) than allowed.”In addition, “managers and staff in Japan knew about the practice but failed to stop it, and the automaker quite likely sold millions of vehicles with the defects.” Toyota may also be facing an additional $50 million fine for misleading environmental performance claims after Greenpeace Australia called for an investigation.
Although it promotes itself as “green,” aiming for profit in the non-stop war for oil profits, Shell continues to invest heavily in oil and gas. Still, the company wants to look good: promoting an image as eco-friendly as possible. In 2023, some Shell ads about clean energy were banned in the United Kingdom for omitting their real impact. The company generates about 2% of global emissions and, despite its goal of reaching net-zero emissions by 2050, its actions don’t match its rhetoric. Groups like Adfree Cities have accused the company of misleading advertising, and campaigns have been banned, but the problem of greenwashing persists, highlighting the need for stricter regulations.
FOOD INDUSTRY: STARBUCKS, MCDONALDS AND COCA COLA
In 2018, claiming that this would significantly reduce its environmental impact, Starbucks released a “straw-less lid.” The lids contain roughly 9% less plastic than Starbucks’ previous flat lid alone; however, they contained more plastic than the old lid and straw combination.
Despite its sustainability drive, the cups continued to be coated with plastic, and the lid material, polypropylene, is recyclable only in certain regions, reducing its positive environmental impact.
In 2019, fast food giant McDonald’s — a favorite among many — decided to replace its ice cream spoons and plastic straws with non-recyclable paper alternatives, aiming to offer a supposedly more eco-friendly option. However, the move was criticized and seen as somewhat pointless, as it essentially replaced one problem with another: instead of reducing waste, it simply swapped excessive plastic production for excessive paper consumption.
According to Break Free From Plastic’s annual report, Coca-Cola is the world’s biggest plastic polluter. The company said that plastic bottles were popular with customers and so they could not just abandon them. The brand was accused of abandoning its goal of 25% reusable packaging — it is worth noting that plastic bottle production exceeds 100 billion per year.
Also, the Earth Island Institute filed a case against the beverage corporation for its misleading propaganda about sustainability and portraying itself as an environmentally friendly company, while in fact promoting more plastic pollution than any other company in the world.
While Coca-Cola claims that its packaging is recyclable, many of the recycling systems around the world are not as efficient as they should be, and so much of that plastic ends up in landfills or even in the ocean. Bottom line is: Coca-Cola’s commitment to sustainability is far from enough.
RETAILERS: H&M, SHEIN AND TARGET
It’s no secret that the fast fashion industry contributes tremendously to the amount of textile waste in the world. According to ReMake, only 20% of discarded textiles globally are being reused or recycled. H&M is one of those companies. In 2019, it launched its ‘Conscious’ line, which promised organic clothes made of cotton and recycled polyester.
H&M was accused by the Norwegian Consumer Authority of misleading marketing because the details regarding sustainability in the new line were not sufficient to make themselves appear more environmentally friendly. In addition, a 2021 report from the Changing Markets Foundation revealed that 96% of H&M’s sustainability claims were false. Uniqlo and Zara are also included in the report with unverified allegations.
Loved by many and criticized by others, even the queen of fast-fashion was caught in greenwashing. Shein was questioned about the recyclability of the pieces from its ‘EvoluSHEIN’ line.
The investigation by Italy’s antitrust authority is still ongoing, and the allegations are that Shein concealed the fact that many of its products were not recyclable and misled customers about the proportion of “green” fibers used. Since Shein is still one of the biggest producers of textile waste and rising emissions, critics contend that this collection is a diversion from the company’s larger environmental effects.
Target faced a class action lawsuit after being challenged over its ‘Target Clean’ label, which was marketed as a guarantee that certain products were free from harmful chemicals. However, investigations revealed that many of the products bearing this label still contained controversial ingredients, raising concerns among consumers about the brand’s transparency and commitment to safety.
SO… HOW CAN I IDENTIFY GREENWASHING?
Greenwashing not only deceives consumers but also makes it harder to identify truly sustainable products, besides damaging the trust between buyer and seller. So next time you go to the store, stay alert!
Is that brand you love really sustainable? Let’s check!
- Since greenwashing can manifest in many different ways, it’s important to pay attention to vague words written on the labels, without specific evidence.
- Also, make sure to check if the eco-friendly seals and logos are actually verified, if the logo is real it is supposed to be easy to find out.
- Don’t be lazy: read the specifications on green packaging carefully — especially the fine print — and so on.
See more at Akepa , the sustainable agency. Look for transparent reporting on environmental practices. Search about it, it only takes 5 minutes!
FINAL THOUGHTS
In a century where sustainability has become both a necessity and a marketing trend, it’s crucial for consumers to stay vigilant. Greenwashing not only undermines genuine environmental efforts but also exploits our goodwill for profit. By paying extra attention to the things we buy and supporting transparent companies, we can push for real change and drive the market toward a genuinely sustainable future.
The article above was edited by Fernanda Miki Tsukase.
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