Greenwashing is an increasingly pressing issue, as it poses a significant obstacle to addressing climate change. The term “greenwashing” refers to all organisations public or private that mislead the public into believing they are reducing their carbon footprint more than they actually are. It’s a classic case of portraying something as better than it is or promoting a false narrative to delay concrete solutions.
There are several reasons why organisations greenwash. Some may do it intentionally to mislead consumers and boost sales, while others may do it unintentionally due to a lack of understanding about the requirements for making environmental claims.
Here are three examples of the faces of greenwashing:
- Promoting the sustainability attributes of a company in isolation from their broader activities. For example, South Africa’s Advertising Regulatory Board (ARB) recently ruled that TotalEnergies could not claim to be “committed to sustainable development” in its SANParks-related ads. A consumer complaint accused the company of greenwashing, pointing to its environmental impact and involvement in harmful projects like the East African Crude Oil Pipeline.
- When companies emphasise an environmental attribute while ignoring other negative impacts. This was highlighted by sustainability professionals who compared the lifecycle emissions of combustion-engine vehicle manufacturing with that of electric vehicle production. While electric vehicles appeared superior in terms of carbon footprint, a deeper analysis revealed that the mining of raw materials for electric vehicles was excluded, skewing the results. A clear case of a misleading lifecycle.
- Claims of being on track to reduce a company’s emissions to net zero, despite lacking a credible plan or failing to implement it effectively. Empty promises mean nothing without action. Numerous companies overpromise on their goals, shift their net-zero deadlines, or abandon their commitments entirely when they fail to meet targets. Watch this video.
These are just three examples, however, there are other faces of greenwashing including being purposely vague about operations, using misleading labels, or focusing on a single environmental attribute while ignoring broader impacts.
Greenwashing is bad for business
The reality is that greenwashing harms businesses. It damages brand reputation, affects the bottom line, and risks losing customers and partners. In addition, businesses can face lawsuits or penalties from regulators, making greenwashing a considerable liability.
Avoiding Greenwashing
Not all companies set out to greenwash. Some may have strong leadership visions but lack integration across departments or the necessary tools to deliver on their plans. Many are unaware they are greenwashing because they lack the data or capacity to track and measure their sustainability efforts.
Measuring impact is essential
Assessing the impact of climate efforts is crucial to ensuring that sustainability goals are met. One key method is inventory reporting, which involves measuring various aspects of an organisation’s operations, such as carbon emissions, biodiversity, soil and water quality, air quality, land use, waste, and pollutants. Establishing a baseline by collecting environmental data at the outset is important, as it provides a reference point for future comparisons and helps track progress.
Innovative technology plays a vital role in this process. From optimising waste management and reducing pollution to integrating renewable energy and preserving biodiversity, sensors can monitor environmental impact in real time. By using remote sensors to collect data, organisations can detect changes in the environment and compare them to baseline data, identifying inefficiencies and implementing targeted interventions to improve sustainability efforts.
Conclusion
Greenwashing may offer short-term gains, but its long-term consequences are severe. Organisations that choose to deceive rather than innovate not only risk losing consumer trust but also hinder global sustainability efforts. True progress requires transparency, measurable action, and a commitment to real environmental impact—not empty promises. Embracing these principles is the only way to ensure that businesses contribute meaningfully to the fight against climate change, rather than standing in its way.
