With the rise of themes such as ecology, sustainable development, climate change, etc., comes greenwashing. Whether you’re an environmentally conscious consumer or a company with ESG (environment, social, governance) objectives, this article will teach you more about how to recognize greenwashing.
Definition of greenwashing
Greenwashing is a common business practice in which marketing techniques are used to make consumers believe that a company is environmentally friendly, when in fact it is not. Companies wishing to make a real impact will need to choose their suppliers and partners very carefully.
There are many ways of greenwashing, whether intentional or not:
Greenlabelling
On the other hand, “greenlabelling” occurs when something – such as a product, service or activity – is labelled as environmentally friendly or sustainable, but turns out to be misleading. Regulators in the United States, the United Kingdom, Australia and the European Union, among others, have begun to issue legislative and regulatory provisions to combat this trend, reflecting a growing worldwide concern.
Greenrinsing
Finally, “greenrinsing” occurs when a company frequently changes its ESG (environmental, social and governance) objectives before they are achieved, listing a range of reasons to justify why the original objectives were not met.
You need to be careful when declaring targets, especially ambitious ones such as achieving net carbon neutrality by 2050 or earlier without having a strategy and action plan for reaching such targets. It’s better to declare an objective that’s a little easier to achieve, or to make sure you have a clear plan of action before declaring anything.
Examples of greenwashing
Ecological” products containing ingredients that are harmful to the environment or to health:
Many companies claim that their products are ecological or environmentally friendly, when in fact they contain ingredients that are harmful to health or the environment. For example, some companies may market so-called “green” cleaning products, but these may still contain one or more chemicals that are harmful to the environment and our health. It’s not always subtle, but you have to pay attention to the details.
Misleading advertising:
Some companies can create advertisements that give the impression (the word impression is important here) that their products are more environmentally friendly than they really are. For example, a company may display images of forests or natural landscapes in its advertising to give the impression that its products are environmentally friendly, when in fact they are quite the opposite.
Greenwashing packaging:
Some companies may use packaging that gives the impression that their products are environmentally friendly when, in fact, they are not. For example, a company might use recycled cardboard packaging for a product, or add a leaflet or pictogram to suggest that the product is healthy.
How do you know if it’s greenwashing?
In the age of technology, it’s even more important to do your research before buying or developing a business relationship. At Demers Beaulne, we are currently integrating a supplier selection form to ensure that we work with companies that share our values. We try to give preference to :
- Belonging to under-represented populations
- Represented by a majority of women
- Premises (production and distribution sites)
However, here are a few things to bear in mind to help you spot this practice and support you in your purchasing decisions:
- Check the information: take the time to read the company’s labels, websites and sustainability reports. Vague or unclear information can be a sign of greenwashing.
- Look at the evidence: look for concrete proof that the company is making real efforts to reduce its impact on the environment. For example, look for impact certifications, such as BCorp, FSC, etc., or reports detailing measures taken to reduce greenhouse gas emissions.
- Be skeptical: if the company’s claims seem too good to be true, beware. Companies can exaggerate the environmental benefits of their products to make them more attractive to consumers.
- Consult reliable sources: credible independent environmental organizations, government agencies and trade associations can provide information on companies’ environmental practices.
In the end, it’s important to use common sense and find out about a company’s environmental practices before making a purchase or supporting a business.
For more information, or to start your company’s ESG journey, contact our ESG transformation partner.
