Greenwashing: deciphering a controversial practice and how to protect against it

The mechanisms of greenwashing

💢Definitions and common forms

Greenwashing refers to the set of communication practices used by certain companies to present themselves as ecologically responsible without any real commitment. This strategy, which exploits consumers' growing sensitivity to environmental issues, is detrimental to the environmental transition by creating confusion and delaying the adoption of truly sustainable solutions to rising greenhouse gas emissions.

Greenwashing can take many forms:

• Misleading or deceptive advertising: using vague language ("natural", "green", "eco-friendly") without factual justification, or highlighting a single environmental aspect of the product to mask an overall negative impact.
• Uncertified green labels: labels created in-house or not based on any official certification, leading to a false perception of the environmental performance of a product or service.
• Ambiguous communication strategies: highlighting one-off or secondary ecological initiatives to distract attention from the real environmental issues linked to the company's core activities.

Several companies have been accused of greenwashing in recent years, illustrating the scale of the phenomenon:

• Volkswagen (2015) - Dieselgate: the automotive group has admitted to installing software to falsify the results of emissions tests on its diesel vehicles. This fraud, aimed at presenting engines as more environmentally friendly than they really were, led to a $30 billion fineanda massive loss of consumer confidence, according to BBC News.

• Coca Cola (J02024): In 2024, during the Paris Olympic Games, Coca-Cola, as official sponsor, was accused of greenwashing by several French environmental organizations, including France Nature Environnement (FNE). These criticisms focused on the company's promotion of its recycling initiatives, perceived as an attempt to mask its major role in global plastic pollution, according to an investigation by The Guardian.

👋Impact on purchasing behavior

Greenwashing directly affects consumer confidence and purchasing behavior.

According to a recent study by Green Finance:

• 64% of consumers have already stopped buying a product or brand after discovering a greenwashing strategy.
• 76% of under-35s say they are particularly attentive to false environmental claims.
• 80% of consumers want access to effective tools for detecting greenwashing.

This growing mistrust complicates the task of truly committed companies, who have to redouble their efforts to prove the sincerity of their CSR actions.

🚫The associated risks

Greenwashing exposes companies to major legal and economic risks:

• Regulatory and financial penalties: false environmental claims are sanctioned by consumer protection authorities and can result in substantial fines. For example, the European Union is planning to adopt a directive banning all environmental communication not backed up by verifiable scientific evidence.

• Reputational damage: a greenwashing scandal can lead to a loss of market share and lasting damage to a company's brand image. Consumers' and investors' distrust of non-transparent organizations translates into lower stock market valuations and difficulty in attracting new customers.

How to recognize and avoid greenwashing?

🔎 Criteria for identifying greenwashing

With the proliferation of environmental marketing strategies, it can be difficult to distinguish a sincere approach from an opportunistic one. Here are a few criteria for identifying greenwashing:

💡Good practices for companies

To avoid any accusations of greenwashing and adopt credible environmental communications, organizations need to observe several good approaches:

• Transparency and verifiable proof: It is essential to publish detailed and accessible reports, based on scientific data, to justify CSR commitments to the environment.
• Obtaining recognized certifications: Adopting official labels such as the European Ecolabel, Fair Trade or B Corp guarantees greater credibility.
• Systemic and coherent approach: Environmental commitment must involve all production and distribution processes, and not be limited to a single product or initiative.
• Honest, measured communication: avoid exaggerating the benefits attributed to the environment, and mention areas for improvement to reinforce the company's credibility.

✅Examples of genuine initiatives

• Patagonia: This outdoor clothing specialist is renowned for its commitment to the environment, particularly in terms of transparency regarding the origin of materials and manufacturing conditions.

• Veja: The sneaker brand favors the use of eco-responsible materials and an ethical production model, while communicating its impact clearly and transparently.

• Lush: Known for its handmade cosmetics, Lush promotes a policy of reduced packaging and natural compositions, while actively campaigning against animal testing.

These examples show that it is possible to reconcile economic profitability with a sincere commitment to the environment, provided that an authentic and responsible approach is adopted.

By understanding greenwashing criteria and applying best practices, individuals and companies can foster a more transparent and ethical business environment. The fight against this practice does not rely solely on individual vigilance, but also on a strengthened regulatory framework and collective mobilization, subjects which will be explored in greater depth in the following section.

Combating greenwashing on a collective level

⚖️Régulation and legal framework

Faced with the proliferation of misleading environmental claims, public institutions are gradually tightening regulations to provide a framework for corporate communications. Several initiatives have been launched at national and international level:

• The European directive against greenwashing: In 2023, the European Commission has proposed a regulation to ban unjustified green claims and strengthen transparency requirements for companies.
• France's Climate and Resilience Act: Passed in 2021, this law requires companies to justify their environmental promises and bans certain misleading statements, on pain of financial penalties.
• Tougher FTC sanctions in the USA: The Federal Trade Commission (FTC) has established strict guidelines for the use of eco-friendly terms in advertising, and sanctions companies for non-compliance.

These measures are essential to discourage greenwashing and encourage truly sustainable approaches.

💚The role of consumers

Consumers have considerable influence in the fight against greenwashing. By adopting a more critical and informed eco-responsible approach, they can encourage companies to improve their environmental practices.

Here are a few concrete actions that everyone can take:

• Check labels and certifications: Choose products with recognized certifications such as the European Ecolabel, Fair Trade, FSC (Forest Stewardship Council) or the B Corp label.
• Beware of vague rhetoric: Analyze brands' arguments and demand concrete proof of their environmental commitments.
• Get information from independent sources: Consult reports from NGOs, consumer associations or journalistic surveys to better assess companies' promises.
• Favoring truly committed companies: Supporting brands with a transparent approach aligned with sustainability values.
• Denounce greenwashing: Report deceptive methods to the relevant authorities or on social networks to raise awareness.

♾️Vers a sustainable future

The fight against greenwashing is not limited to regulation or individual vigilance; it relies on a profound transformation of commercial campaigns and mentalities. To achieve this, several levers can be activated:

• Enhanced environmental education: Raising awareness of sustainable development, energy management and the risks of greenwashing from an early age.
• Innovation and research: Encourage companies to invest in truly sustainable solutions, promote the development of eco-responsible technologies and favor more environmentally-friendly production, moving towards carbon neutrality.
• Collaboration between public and private players: governments, NGOs, businesses and citizens must join forces to establish solid, credible environmental standards, guaranteeing greater sustainability and contributing to a collective reduction in the world's ecological footprint.

This global approach is essential to promote an effective energy transition and a more environmentally-friendly economic model. Collaboration between public and private players: Governments, NGOs, businesses and citizens must join forces to ensure greater sustainability; contributing to a collective reduction in the global ecological footprint, in order to foster truly sustainable development.

Greenwashing represents a major obstacle to the ecological transition, confusing individuals and harming genuinely committed companies. In the face of this deceptive practice, individual vigilance is not enough: a strict regulatory framework, collective action and technological solutions are essential.

By accurately assessing their carbon footprints and greenhouse gas emissions, organizations can not only comply with ever-changing regulations, but also better understand their impact on climate and energy management. Greater transparency in the dissemination of information helps to combat false ecological claims. Acting now means meeting climate challenges while ensuring a resilient and responsible trajectory; an approach that involves individuals, households and organizations alike. What's more, effective awareness-raising campaigns are essential to mobilize all stakeholders and accelerate a genuine ecological transition.

Thanks to high-performance tools and expert support like those offered by GCI, they can transform these challenges into opportunities, aligning sustainability and competitiveness.

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