You’ve probably encountered brands claiming to have sustainable products, pledging environmental benefits, or asserting they reduce greenhouse gas emissions. However, some of these claims turn out to be deceptive – a tactic commonly known as greenwashing.
In a recent report by RepRisk, it was revealed that 1,841 documented events of misleading company communications involved greenwashing, with 56% of these 1,038 cases specifically relating to false environmental claims. Alarming trends show that the severity of greenwashing incidents grew by 30%.
Misleading information can negatively affect public trust, which in turn hampers the global movement toward sustainability. It slows down progress toward meeting sustainability goals and fractures the crucial trust between brands and their consumers.
What is Greenwashing?
Greenwashing was first defined in 1986 by environmentalist Jay Westerveld, who criticised companies that marketed themselves as environmentally conscious without actually taking meaningful environmental action. In essence, greenwashing occurs when brands spend more effort on promoting their supposed eco-friendly stance than actually implementing measures to minimize their environmental impact. This can take many forms, from vague claims to outright falsehoods, all aimed at convincing consumers of the brand’s environmental commitment without evidence.
What are the characteristics of Greenwashing?
Greenwashing campaigns often feature:
Misleading terminology (e.g., “natural” or “eco-friendly” without context)
Selective information that highlights minor environmental efforts while hiding negative practices
Over-reliance on sustainability imagery without factual backing
How Greenwashing Can Harm a Brand's Reputation?
Greenwashing can be detrimental to a brand’s image in several ways:
1. Loss of Consumer Trust
Once consumers discover a brand has been deceptive, it becomes difficult to regain their confidence. Trust is one of the most valuable currencies in branding, and greenwashing erodes it significantly.
2. Legal Consequences
Greenwashing can lead to lawsuits. Regulators and consumer rights groups worldwide are increasingly holding companies accountable for false claims related to sustainability. Fines, reputational damage, and costly legal battles often follow.
3. Lost Partnership Opportunities
Many businesses are now selective about partnering only with companies committed to genuine sustainability. Greenwashing can alienate potential business partners, investors, and collaborators looking to align with authentic brands.
3 Tips to Avoid Greenwashing Your Brand
Creating authentic sustainability communications is essential to build trust with consumers. Here are key strategies to ensure your brand communicates sustainability credibly and transparently.
1. Make Your Green Claims Clear
Ambiguity can be a red flag for greenwashing. When making sustainability claims, be precise and back them up with evidence. For instance, instead of stating a product is “partially made with organic cotton,” specify the exact proportion, such as “made with 20% organic cotton.” This transparency prevents your brand from appearing vague or elusive.
2. Ensure Regular Internal Communications on Brand Sustainability Across All Levels
Consistent communication between teams, especially marketing and sustainability departments, is critical. Without alignment, misunderstandings about sustainability practices can slip into marketing messages, causing unintentional greenwashing. Establish clear internal communication protocols to ensure everyone is on the same page about your sustainability initiatives.
3. Carry Out a Carbon Footprint Assessment
Understanding and managing your environmental impact is fundamental to sustainability. Conducting a carbon footprint assessment can help you identify the main sources of carbon emissions within your organisation. Use this information to create a transparent, data-driven action plan that informs your sustainability messaging.
Examples of Campaigns Claimed to be Greenwashing
IKEA
IKEA has promoted several sustainability initiatives, including a pledge to phase out single-use plastics in 2020 and eliminate plastic from consumer packaging by 2028. However, in 2021, Earthsight, a nonprofit organization, investigated IKEA’s supply chain and found that the company sold wood that was illegally sourced from Russia.
IKEA had relied on the Forest Stewardship Council (FSC) certification to verify the sustainability of its wood sources. Unfortunately, some of this certified wood was found to be illegally sourced. In response to the scandal, IKEA severed ties with the implicated suppliers, attempting to distance itself from the controversy. While IKEA took steps to resolve the issue, the incident still raised questions about the authenticity of its sustainability claims.
H&M
In 2022, a Quartz investigation revealed that H&M was misleading consumers with its environmental scorecards, based on the Higg Sustainability Profile. This tool measures the environmental impact of fashion materials, including carbon emissions, water, and energy use.
The investigation found that more than half of H&M’s scorecards overstated environmental benefits. For example, one scorecard suggested that a garment required 20% less water to create, when in reality, it required 20% more water than average. Such discrepancies led to accusations of greenwashing and undermined the credibility of H&M’s sustainability messaging.
Conclusion
How can Hashtaqs help?
Avoiding greenwashing and building authentic, credible sustainability messaging can be challenging. At Hashtaqs, we provide expert guidance in building sustainable brand reputations through our range of services, including:
Brand and Marketing Advisory: We help you develop clear, trustworthy messaging that resonates with your audience.
Content Marketing Services: Our team crafts compelling content that communicates your brand’s sustainability efforts with transparency.
Community Development: We foster community engagement strategies that align with your sustainability goals.
Webinar Services: Through educational webinars, we help you communicate your brand’s sustainability initiatives directly to your audience.
Hashtaqs empowers businesses through brand transformation, marketing advisory, internationalization support, and community development. As a Singapore-based company, we also offer a funding scheme of up to 50% for local SG businesses, making it easier for you to adopt sustainable marketing strategies.
Contact us for a consultation at +65 8868 1418 or email us at [email protected]. For more information, visit www.hashtaqs.com.
