To avoid greenwashing and fulfil their ESG objectives, businesses must take significant, sector-appropriate actions.

1. The Top Ten Sins of
Greenwashing
The world is becoming more eco-friendly. We live in the era of
conscientious consumers where stakeholders are supervising ESG
policies in businesses more than ever before. There is a
percentage rise in consumers willing to pay a premium for safer,
healthier, and environmentally conscious brands and products.
The Sustainability paradigm is navigating the ESG
consulting landscape for businesses to balance the interests of
their shareholders, employees, and customers. Companies are
waking up and realizing that employing eco-friendly practices is a
“must-have,” not a “nice to have.”
It is critical for companies to take meaningful and industry-
appropriate steps to avoid greenwashing and achieve their ESG
goals. Being labeled as a firm that engages in “greenwashing” can
deeply fracture the firm’s relationship with stakeholders and
irreparably damage the trust of consumers.

2. If you have ever picked up a product because the packaging said
“natural” on it or that it looked recycled, then you may have been a
victim of greenwashing.
What is Greenwashing?
Greenwashing is the approach of making brands appear more
sustainable than they actually are. This involves adopting cynical
marketing ploys, performing misguided PR stunts, or merely
changing the packaging of an existing product and labeling it as
"green or natural" while continuing to use unsustainable practices.
It is a practice companies employ to appear as if they care for the
environment while increasing their profit margins, as they are
aware that eco-conscious people are willing to shell out more
money for sustainable products. Most of us are trying to adopt a
greener way of living and seeking out brands and companies that
follow environmentally friendly practices.
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What is Considered Greenwashing in
Businesses?
A business or company is said to indulge in greenwashing when
they spend large amounts of time and money marketing and
promoting their “green” goods or services rather than using the
same time and money to actually implement environment-
friendly means and practices.
Greenwashing - the practice of branding something as
sustainable, green, or eco-friendly, green- deceives consumers

3. into thinking they are supporting the planet by choosing the right
products.
One uncertainty still prevails-
Are businesses being held accountable for the way they
advertise?
But how to check if companies are really as green as they pretend
to be? & What should customers look out for to spot
greenwashing?
Let’s explore the top ten signs of greenwashing and understand
what greenwashed ads and claims businesses are making to fool
their customers.
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1. Fluffy language
Expressions such as "eco," "sustainable," "environmentally friendly,"
and "green" are commonly used by companies to make their
businesses appear environmentally conscious. But in reality, they
rarely adhere to scientific, eco-friendly standards. With phrases
like 'eco,’ ‘green,’ ‘low-CO2' becoming marketing magic words for
businesses, these are on the verge of meaningless among the
admen.

4. 2. Green products from a dirty company
Sustainability cannot be applied to just one product among many.
Companies are now launching "sustainable” ranges and
collections - a common marketing tool of high-volume. These fast
fashion labels are packaging their range of clothing as “eco” to
promote their acceptance of an eco-friendly business model. But
this does not indicate that the brands have made a complete
overhaul. What they are actually doing is hopping on the green
glow initiative.
3. Suggestive imagery
Plastering pictures of the earth, polar bears, wheat fields, or rain
forests can be considered a savvy marketing ploy. While they can
help to distract from, or misinform a company’s true
environmental impact, they do not scream environment-friendly
brands. Businesses should only use symbols or labels that reflect
their claim and do not portray a false impression on the
consumers.

5. 4. Irrelevant claims
While brands are to set targets for their environmental impact,
promising unachievable claims can put them in jeopardy. Large
brands that have set their greenhouse gas emissions targets do
not state whether they are on track to meet them, thus making
them a part of the vicious greenwashing wagon.
5. Best in class
Brands marketing their products as the best of a class or best in
sustainable domain does not necessarily imply that they offer the
best, eco-friendly products to their customers.
6. Lack of credibility
Certain industries, no matter what, can never turn green ways of
working. When such industries such as Oil companies and Airlines
promise to go eco-friendly, the message is nothing but sort of a
gimmick that may lead to a loss in their credibility in the market.
7. Jargon
Brands that dazzle their consumer with science and technical
detail but portray zero means of being eco-friendly. Businesses
that include jargon such as "sustainable," "eco," and "green" in their
marketing plans are often the ones that rarely adhere to these
scientific standards.
8. Imaginary friends
Promoting endorsements or marketing a conservation logo on
your promotional content or ad is nothing but a sort of
greenwashing.
9. Proof
Brands that cannot substantiate their claims or present evidence
of practicing environment-friendly approaches in their work can
also be labeled as greenwashing brands.

6. 10. Outright lies
Telling outright will definitely land you in trouble. The most
offensive kind of greenwash - is brands engaging in violating the
trust of their customers. It is better to part ways with them.
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How can Greenwashing Harm a Brand’s
Reputation?
Companies use greenwashing to appeal to their customers who
care about, and support sustainable practices without having to
make changes to their existing business practices. It is typical for
greenwashing companies to spend more time and money on
marketing the “eco-friendliness” of their products than actually
working to ensure they are sustainable. But the biggest risk of
damage to brands by greenwashing is reputational.
There are now numerous cases of brands being publicly called out
and shamed for co-opting environmental causes simply to bolster
their image. Let's explore some of the greenwashing examples

7. where large brands claimed to support the sustainability
bandwagon, but their claims backfired, leading to great damage.
Which large corporations have been accused of
greenwashing?
Here are some noteworthy examples of greenwashing-
Apple
While this global tech giant portrays a positive public perception of
being a green company, many of the company’s “green” policies
serve to save money. In 2020, the company announced that
iPhone 12 would ship out without earbuds or a wall charger to cut
down on e-waste.
While this measure seemed like a step in the right direction, critics
saw this as a way to divert attention from the company’s real
source of e-waste. Apple's phones are notorious for being
expensive to repair, and they stop being supported by developers
within a few years of their release.
Amazon
One of the most influential retailers globally, Amazon has set the
standard for many global green initiatives. But recently, the
company was under fire for making public proclamations about
doing better for the environment, but it was quietly supporting
legislation that undermined these measures.
In 2019, the company signed a Climate Pledge with a goal of
hitting net-zero carbon emissions by 2040. However, this pledge
failed to show the steps. What was even worse were the reports
that highlighted that the pledge only covered Amazon’s direct
operations and not the carbon footprint of its supply chain, which
accounts for more than 75% of the company’s emissions.
The company also introduced a “Climate Pledge Friendly” badge
on products that are Fair Trade, certified by the Rainforest Alliance,

8. and other environmental certifications. However, some of their
products are not eco-friendly, including products like disposable
baby wipes, single-use batteries, and food products that contain
palm oil.
IKEA
The largest consumer of wood in the world, IKEA, has also
experienced its share of greenwashing claims. Reports show that
its timber consumption has doubled in the last decade. An
investigation carried out by Earthsight led to the discovery that
IKEA has been building beechwood chairs using illegally sourced
wood from the forests of Ukraine’s Carpathian region. This
oversight raises serious questions about IKEA's ethics and
transparency. In spite of these allegations, IKEA is still one of the
best in the world in terms of its sustainability credentials.
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Why is greenwashing rampant today?
Because it works.
Greenwashing is more pervasive than ever. It involves using
marketing and PR tactics to overamplify a brand's ESG efforts and
gain greater favor from consumers, investors, employees, etc.
Apart from consumer pressure, the practice of engaging in
greenwashing is helping firms in building positive public relations
and boosting their brand image. Companies that are sticking to
adopting environment-friendly practices are instantly attracting

9. more consumers than a firm that does not care or is actively
destroying the environment.

11. Conclusion:
Society is experiencing a paradigm shift with people becoming
more environmentally conscious than ever. The widespread
practice of greenwashing is forcing consumers to do their
research and ask questions about sustainability and ethical
practices. This shift in consumer preference towards more
environmentally friendly goods or services is posing a grave threat
to businesses that do not incorporate environmentally friendly
practices in their business model.
The sudden surge in environmentally-conscious-practices is
compelling a considerable number of companies to adopt
environmentally friendly practices. With the demand for firms to
go “green” on the rise, the same scenario is leading to a sudden
rise in the number of businesses that are making claims to green
credentials but, in fact, are doing very little to nothing in reality.
With younger generations prioritizing eco-friendly and impactful
brands, there is a sudden shift in the ways businesses are
adopting ethical policies. Businesses are joining hands with other
eco-friendly businesses to encourage their customers to do the
same. Businesses practicing going green without the need to
greenwash are benefiting due to growing consumer loyalty,
support, and a greener footprint on the planet.
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