Navigating Green claims in a world of Greenwashing

Jan 22, 2025 by Mark Baines Category: Knowhow

Green claims are everywhere, and with them comes the inevitable in-authentic ‘greenwashing’ which is such an important current issue, as more and more companies jump onto the environmentalist bandwagon.

 

ESG and CSR

ESG (Environmental, Social and Governance) is a major theme in the marketing of most brands, so it is important to understand when they are seeking to pull the wool over stakeholders’ eyes, or when they are being genuine and authentic.

It’s also vital to be able to spot greenwashing activities as we are frequently asked to advise on ESG and CSR (Corporate Social Responsibility), as well as what is worth undertaking and what should be ignored.

This article will give more clarity on the subject in order that our readers should be in a better position to find a way through all the conflicting claims, as well as to incorporate green claims in their own marketing. Even in Marcom these matters are important: maybe we should attain B-corp status? This is partly for staff recruitment/retention purposes, and partly to reflect our values as a company and as individuals.

 

Greenwashing

So what is ‘greenwashing’? It is defined as behaviour or activities that make people believe that a company is doing more to protect the environment than it really is.

So it’s not always bad – sometimes it’s better than nothing. But more often than not this is not the case because it misleads stakeholders and gives them an ill-founded and damaging complacency. More importantly, if a greenwashing activity is revealed, it can severely backfire on the guilty company; and let’s face it, many of us can detect greenwashing without it having to be pointed out!

 

What’s behind greenwashing in B2B companies?

Lack of knowledge is the most common cause of greenwashing. It’s a new area for most organisations so it is easy to dupe companies into ‘buying’ your green claims.

Companies do it to improve their ESG ratings, appeal to customers, improve their reputation and even increase their profits. But it’s easy for them to fall into the trap of using it as a way to dupe customers, avoid responsibility or save costs.

The people responsible for green claims are marketers, product designers, legal department and company leaders. But there are also many external influencers: the supply chain, regulatory authorities, advertising agencies and most importantly – the consumers themselves.

Greenwashing happens because companies are seeking to shift blame away from their own bad practices or unavoidable consequences. It’s about reinforcing the brand, creating more persuasive advertisements or sales pitches; but it’s also about moving the goalposts away from themselves – ‘green hushing’.

 

How to avoid greenwashing

There are some fairly simple ways of avoiding or mitigating the effects of greenwashing, but they are not always used – sometimes intentionally when a company wants to mislead the market or jump on the bandwagon.

It’s important to avoid broad, sweeping claims which endeavour to cover every angle of green requirements – many companies seek to persuade stakeholders that their activities are ‘good for the planet’ which is unprovable.

Some industries, such as aviation and construction, are particular offenders and their claims carry very little impact in the market other than to raise questions. But so many companies make misleading claims as a result of trying to win favour with the full range of stakeholders, that it is inevitable that we view green claims with a cynical eye, rather than just accept them.

 

Regulatory control

There are organisations and directives established to stop greenwashing. The regulations are tightening globally; for example the EU ‘Green Claims Directive’ will be in place by 2026, with its ‘Green Claims Code’ – a 13-point checklist that these claims must robustly stand up to.

And there are risks beyond fines – especially to a brand’s reputation, which will impact on sales, trust, internal culture and recruitment, as well as its ability to form alliances and associations with other brands.

So how do we ensure our green claims are bona fide and not just an effort at greenwashing?

 

The process to avoid greenwashing

This depends on one thing over everything else: leadership buy-in. With it, the green claims will be authentic and meaningful; without it, you’ll just be looking at greenwashing.

 

Once you’ve got that in place and assured, the steps are:

  • Conduct an audit;
  • Understand the regulations;
  • Create a formal process;
  • Apply the process to all green claims;
  • Consider a list of banned terms (the ASA – Advertising Standards Authority – have one you can use);
  • Always start with the evidence.

 

If in doubt, don’t use:

  • Generic words, such as recyclable, carbon neutral etc;
  • Eco-imagery in marketing materials, such as green imagery, trees, flowers etc;
  • Claims for things you will do in the future;
  • Claims based on ambition;
  • Claims based on unverified information from external supply chains.

Stick to the above and you will most likely avoid the stigma of greenwashing, so your green claims will be accurate and robust.

 

So remember:

  • Get management buy-in;
  • Keep up to date (use the ASA again!);
  • Start with the evidence (you’ll need to check that it stands up to scrutiny);
  • Create a formal process for creating and pursuing green claims.

 

My gratitude to Gemma Butler whose Webinar hosted by CIM (Chartered Institute of Marketing) provided the inspiration for this article.

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