Greenwashing: What Is It and How to Avoid It?

Greenwashing is when a company gives a misleading impression of how environmentally friendly its products or practices are. The name blends “green” with “whitewashing” - covering up the reality with a nice-sounding veneer.

Why it matters.

As more customers pay attention to how businesses treat the planet, there’s obvious pressure to look green. Some companies do the hard work. Others take shortcuts - making claims they can’t back up. That misleads consumers, erodes trust in genuinely sustainable products, and ultimately slows down real progress.

How to spot it.

It’s a tricky balance. We want to celebrate businesses doing good things for the environment. But when claims can’t be validated - or simply aren’t true - that’s greenwashing. Here are some common warning signs:

Vague claims. Phrases like “eco-friendly” or “green” with no specifics or evidence behind them.

No proof. No third-party certifications or independent verification of environmental claims.

Irrelevant claims. Promoting the absence of chemicals or practices that are already banned or standard across the industry.

Lesser of two evils. Claiming a product is “greener” than alternatives when the product itself is unnecessary or inherently harmful.

Misleading labels and imagery. Using natural images, earthy colours, and eco-sounding labels without any real substance behind them.

Fighting back against greenwashing.

Calling it out matters, because if consumers lose trust in green claims altogether, the businesses doing the right thing suffer too. Industry bodies, regulators, businesses, and customers all have a role to play.

As individuals, we can educate ourselves about what genuine sustainability looks like. Look beyond the packaging - check a company’s sustainability reports and third-party reviews. Seek out products certified by credible organisations like Fair Trade. Support businesses that are open about both their successes and their shortcomings. And back policies that require companies to substantiate their environmental claims.

Moving forward.

Preventing greenwashing needs effort from every direction - governments setting clear rules, companies committing to genuine transparency, investors directing funds towards real sustainability, NGOs keeping up the pressure, and consumers making informed choices.

The businesses that will thrive are the ones that are honest about where they are now and clear about their plans to improve. Being transparent about your environmental impact isn’t just how you avoid greenwashing - it’s how you build a brand people actually trust.

Avoiding greenwashing starts with genuine action. If you want help building sustainability into your business in a way that’s real and measurable, that’s what we do. Learn more about our Sustainability & Circular Economy work.

You can also access the Sustainability Decoded GPT here, which will support you with initial advice and inspiration to initiate or accelerate sustainability within your business.

Further Reading

• Greenhushing explained.
• The UN Sustainable Development Goals and Why They Are Important to Business.