GREENWASHING: WHEN SUSTAINABILITY BECOMES JUST MARKETING

Author: Ruxandra MIUȚI, Innovation Manager Green eDIH

It all started with a towel, in 1983, when American environmentalist Jay Westerveld, staying at a resort in Fiji, found a message encouraging guests to reuse towels “to protect the environment.” In theory, it sounded noble. In reality, the hotel was in full expansion, destroying forests and natural habitats to build new tourist facilities. The contradiction led Westerveld to write, in 1986, an essay about misleading environmental marketing practices, in which he used the term “greenwashing” for the first time. Today, this phenomenon has expanded into a real system of manipulation, where companies from all industries promote products and services as environmentally friendly, without having a real positive impact on the environment. Greenwashing, or surface-level environmentalism, has become a global issue, and to counter it, we need more transparency, stricter regulations, and proper consumer education.

Definition and Context

The United Nations defines greenwashing as “a marketing tactic by which a company exaggerates or falsifies its commitments to sustainability.” The term introduced by environmentalist Jay Westerveld was, as mentioned, inspired by a hotel policy encouraging towel reuse under the pretext of protecting the environment, when in reality the main motivation was cost reduction. Identifying these practices is important because well-meaning consumers can be misled and end up supporting companies that only pretend to be environmentally friendly. The practices can vary, from using green packaging and unfounded eco-labels to false claims about carbon footprint or the use of renewable energy.

Terms like “sustainable,” “eco-friendly,” or “ethical” have become widespread in companies’ marketing strategies, and this is not accidental. According to a recent report by Greenprint, 73% of consumers consider a product’s environmental impact before purchasing it. As concern about climate change grows, consumers are increasingly drawn to brands that appear to take responsibility for reducing emissions. The problem is that not all companies that claim to be sustainable are truly committed to environmental protection.

In a market increasingly oriented toward sustainability, companies are investing heavily in “green” marketing campaigns. To avoid being misled by these tactics, consumers should check whether products hold independent certifications, such as the Forest Stewardship Council (FSC) for wood, Green Seal for cleaning products, or EPA Safer Choice for environmental safety. In addition, symbolic gestures that mask problematic practices should be examined. For example, Apple stopped including accessories such as headphones and charging adapters with new iPhone models, citing the reduction of electronic waste, even though its policy of planned obsolescence contributes significantly to waste generation. Another example is the Climate Pledge Arena in Seattle, funded by Amazon, which promotes a net-zero goal for 2040, but without including its supply chain, responsible for 75% of the company’s emissions.

Notorious Examples

The automotive industry was shaken by scandals such as Dieselgate, which revealed the manipulation of emissions tests. Similarly, many fashion brands promote “sustainable” collections, even though they contain only minimal percentages of recycled materials. Food retailers use terms like “natural” or “eco-friendly” without official certifications to back up their claims.

A notorious example of greenwashing is BP’s 2005 campaign, which popularized the concept of the “carbon footprint,” shifting the responsibility onto consumers while the company continued exploiting fossil fuels. In the 1960s, Westinghouse promoted nuclear energy as completely safe, without mentioning the risks of radioactive waste. In the 1980s, Chevron launched the “People Do” campaign, suggesting that oil drilling had minimal environmental impact, even though its effects were devastating.

Recently, many companies have been accused of greenwashing. In 2022, Innocent Drinks, owned by Coca-Cola, launched ads about recycling while the company was a major polluter with single-use plastic. Ikea was involved in scandals related to the use of wood from illegal logging, and H&M was criticized for “eco” collections that were no more sustainable than the rest of its products.

In transport, Ryanair proclaimed itself “the greenest” airline in Europe, and Delta Airlines declared itself “carbon neutral,” although these claims turned out to be misleading. Luton Airport claimed its expansion would not affect carbon emissions, omitting the impact of increased air traffic.

Shell and Unilever have also faced criticism. Shell tried to place the responsibility for reducing emissions on consumers while continuing to invest in fossil fuels. Unilever used vague terms to promote its products as “green,” without clear evidence.

These examples show the importance of critically analyzing sustainability claims and the need for greater transparency to protect consumers.

Detecting and Combating Greenwashing

To combat greenwashing, an approach is needed that combines consumer education, strict regulations, and increased transparency. Consumers must look for clear evidence of a product’s sustainability, relying on independent certifications such as FSC, Green Seal, or EPA Safer Choice. It is also important to examine whether companies are implementing concrete measures or merely using vague claims about environmental impact.

On January 17, 2024, the European Parliament adopted the Directive on Consumer Protection against Unfair Practices and Greenwashing (Greenwashing Directive). It is set to be approved by the EU Council and published in the Official Journal, after which member states will have 24 months to transpose it. The directive strengthens transparency and consumer protection, giving them access to clear information about the sustainability of products. Amending Directive 2005/29 on unfair commercial practices, it imposes strict rules on environmental and social claims by companies and works alongside the Green Claims Directive.

The legislation prohibits the use of eco-labels without independent certification and penalizes false claims. The information provided must be clear, objective, and verifiable. Comparative claims, such as “greener than X,” must specify the comparison method and the products involved. Promises about future sustainability performance must also be supported by transparent and measurable plans, approved by independent entities. The use of carbon credits to support climate neutrality will be banned, and companies will not be allowed to promote compliance with legal requirements as a competitive advantage.

After publication in the Official Journal, member states will have two years to transpose the directive, although France, Germany, and the Netherlands may implement the rules sooner. This directive reinforces corporate responsibility and protects consumers from false sustainability claims.

Companies must adopt transparent policies and avoid unfounded green messages. Publishing detailed sustainability reports that reflect both progress and challenges is essential. However, the European Commission recently proposed changes to the Corporate Sustainability Reporting Directive (CSRD), which could reduce reporting obligations for small and medium-sized enterprises. Although the aim is to reduce bureaucracy, there is a risk of decreasing transparency and corporate accountability, affecting investor trust and slowing progress toward sustainability.

Green eDIH Involvement

Green eDIH is actively engaged in promoting genuine sustainability and supporting companies that want to adopt responsible practices. Through its digitalisation and innovation programmes, Green eDIH helps organisations measure and reduce their environmental impact, offering concrete solutions for emissions monitoring and sustainability traceability along the value chain.

Green eDIH supports initiatives such as CityPedia (https://citypedia.ro/homepage/), an intelligent platform that integrates digital technology to monitor and optimise urban sustainability. The CityPedia marketplace plays an important role in combating greenwashing, providing a platform where companies and authorities can access and transparently verify sustainability data. Through this initiative, Green eDIH contributes to the creation of greener, more efficient, and more transparent cities, offering public administrations and citizens digital tools to make informed decisions about environmental impact. In this way, CityPedia becomes a model of transparency and responsibility, strengthening trust in genuinely sustainable practices.

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