What's greenwashing? It's the exaggeration of a company's environmental credentials. Intentional or unintentional and varying in severity, corporate greenwashing gives a false impression that a company or its products are more environmentally friendly than they genuinely are.
Examples of greenwashing:
👉🏼 Using images of beautiful landscapes in advertising
👉🏼 Advertising without third-party certification or applying terms like natural, organic and sustainable
👉🏼 Promoting a product as green while ignoring packaging or processes that are harmful to the environment
👉🏼 Inventing unsupported certifications or labels to mislead consumers
Recently, the European Commission proposed new rules to fight greenwashing, and protect consumers and the environment. Once implemented, the law will make companies liable for their environmental claims.
Start preparing now!
How to avoid greenwashing:
- Be transparent and don't lie (a friendly reminder!)
- Introduce a bespoke ESG policy
- Be mindful of your advertising messages and images
- Carefully select marketers and influencers
And most importantly:
Implement compliance programs to educate the board and employees on the fundamentals of ESG, the benefits of truthful communication and the risks of greenwashing.
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