Greenwashing: What it means and how to recognize it

Advertising is the soul of commerce. And the sustainability, at this moment and will be for a long time, is the soul of advertising. All this can only be good for the Sustainable Development, its objectives, the change it proposes in the development model, the strong and clear need to create wealth and employment that is more shared and less concentrated in the hands of the usual suspects. But messages must be transparent. Otherwise, we risk counterproductive effects and open the doors to a phenomenon that is devastating for the growth of awareness regarding sustainable lifestyles, of greenwashing.

GREENWASHING

The term greenwashing refers to a deceptive practice adopted by companies, institutions or other entities that seek to presenting themselves as environmentally responsible without actually adopting sustainable practices.

This marketing strategy aims to capitalize on the growing consumer sensitivity and the public towards environmental issues, without however making significant or real changes to their operations.

Greenwashing can manifest itself in various ways, including the use of:

• Misleading advertisements
• Misleading eco-labels
• Exaggerated statements o not supported on green initiatives
• Sponsorships of environmental events or projects without a real long-term commitment.

This practice not only deceives consumers, but it can also harm progress towards sustainability, hindering companies truly committed to green practices.

An important intervention on the topic was made by Bas Eickhout, MEP and vice-president of the Greens/European Free Alliance Group, who declared: “Companies must be responsible and transparent about their environmental impact. We cannot allow greenwashing to distract attention from the real environmental challenges we urgently need to address.".

Pushing for greater transparency and accountability is crucial to ensuring that environmental initiatives are authentic and that the public can make informed choices. The European Parliament, together with various non-governmental organizations and environmental movements, continues to work to combat greenwashing and promote a more sustainable and authentic future. But before we get to that, let's understand how greenwashing works specifically.

HOW IT WORKS

Greenwashing works mainly through the strategic use of media and advertisingAs mentioned above, companies use deceptive marketing techniques to create an eco-friendly corporate image.

This type of company often exhibits environmental certifications of dubious origin o eco-sustainable labels without any external independent control. In short, the aim is to surf the wave of sustainability, misleading consumers who wish to make eco-friendly purchasing choices.

Another common greenwashing mechanism is the promotion of marginal environmental initiatives or insignificant compared to the company's overall environmental impact. For example, an oil company might widely publicize its contribution to a reforestation project, while continuing to invest heavily in fossil fuels.

This method allows the company to divert attention from its most harmful practices, creating a positive public perception that doesn't reflect the reality of its operations. This is sometimes true even when the brand is divided into multiple sub-brands, which are sometimes difficult to associate with the main brand.

RISKS

Greenwashing is becoming a risk in many contexts. This is especially true in an era when adopting genuine and effective ecological measures is crucial for the future of the planet.

First, diverts attention and resources from truly sustainable initiativesWhen companies and institutions spend time and money on greenwashing practices, these resources are diverted from projects that could have a positive impact on the environment.

This can slow down progress towards climate goals and sustainability, undermining global efforts to address the climate change and environmental degradation.

Second, Greenwashing undermines consumer confidence and other stakeholders. When people discover that a company's environmental claims are false or exaggerated, trust in that company and, more generally, environmental claims can diminish, leading to discontent and even outright distrust of even those projects with genuinely moderate environmental commitments.

This skepticism makes it harder for truly sustainable companies to get the recognition and support they deserve. Furthermore, it can lead to a decline in public engagement with green practices, as consumers may become more cynical and less likely to believe that their individual efforts and consumer choices can make a difference.

REGULATION

The new rules approved by the European Parliament prohibit the use of terms as “environmentally friendly”, “biodegradable” and “climate neutral” unless supported by recognized tests and official certifications.

Slogans or wording based on CO2 offset schemes will no longer be permitted unless they are clearly specified and verified by independent third partiesThe directive also requires that information on the durability and repairability of products be more visible, promoting greater transparency for consumers.

Changes have been made to the Unfair Commercial Practices Directive (2005/29/EC). With the update, greenwashing is added to the list of prohibited commercial practices.

For companies that violate these new regulations, there would be:

• Fines up to 4% of annual turnover;
• Ban on participation in public tenders up to 12 months;
• Obligation for corrective actionsAuthorities can require companies to take corrective action within 30 days to stop making non-compliant claims or using misleading labelling schemes.

EU member states will have 24 months to transpose this directive into their national laws, with some states likely to implement the rules more quickly, including France and Germany.

HOW TO RECOGNIZE IT

Recognizing Greenwashing Strategies It can be complex. But you need to remember from the beginning what type of company it is and what it does. Then, understand how they operate:

• Vague language and generic
• Lack of recognized certifications or released by third-party and independent bodies
• Concentration on secondary aspects: e.g. the plastic bottle is 100% recycled but the entire production process still has the same impact on the environment as before.
• Claims not supported by evidence
• Lack of information on the entire production process
• Contradictions between what the company says and what actually happens

HOW TO FIGHT GREENWASHING

While the European Union remains one of the world's most active forces against these deceptive practices, we too, wherever possible, can do our part. Here are some tips to avoid falling into this trap and combat greenwashing:

• Look for reliable certifications like the brand FSC (Forest Stewardship Council) or Energy Start.
• Read the sustainability labels carefullyWhere do they come from? Is it possible to trace the origin of this term?
• Learn about the brand.
• Prefer skepticism when companies talk about carbon offsets.
• Educate yourself and
• Uses Certified apps o tools on the web including AWorld.

EXAMPLES

There would be so many examples, but in this case we want to present you 3 examples that have to do with some of the industries with the greatest impact on the environment, namely fast fashion, automotive e gas & oil.

H&MLike many of the brands we spend our money on at malls, they have faced accusations of misleading and false advertising. For example, in 2022, this brand was accused of greenwashing with its "Conscious Collection" line. This clothing line was advertised as sustainable and environmentally friendly, but an investigation revealed that many of the environmental claims were exaggerated or misleading. The brand was forced to recall all items from the collection.

The case of Volkswagen Dieselgate of 2015 where it emerged that the German giant had installed deceptive software in its diesel vehicles to manipulate emissions testsThe company had advertised these vehicles as “clean” and environmentally friendly, but in reality they emitted levels of pollutants far above legal limits. Volkswagen was fined billions of euros and had to recall millions of vehicles worldwide.

On the oil front, the company Shell In 2023, it was accused of greenwashing for exaggerating its renewable energy production. An analysis commissioned by Greenpeace revealed that Shell had declared a renewable capacity of 6,4 gigawatts for 2022. However, this figure included plants still under construction or slated for sale. Actual renewable energy capacity at the end of 2022 was only 2,2 gigawatts. Furthermore, Most of Shell's investments (91%) went into fossil fuels, with only a small fraction dedicated to renewable energy. This is true for several other similar companies, including those in our country.

GREENWASHING NATURE YES

We were very impressed by a advertising campaign di Nature Yes with a singular message. Here it is, verbatim: «We believe in a world that regenerates itself. Not in a society that consumes."What does this mean? Are we still repeating the fairy tale of "happy degrowth"? And from a large group that lives and thrives on consumption? Strange, isn't it?

Nature Yes has a network of 285 shops, throughout Italy, with revenues around 400 million euros a year. Supermarkets, in fact, are temples of consumption. We can define NaturaSì as a giant in the highly profitable organic sector, especially in terms of food products. Furthermore, NaturaSì, and this is a corporate choice, has aimed at high-end market.

If you go and take a look in its shops, you can find them in any Italian region or even on the web, you will discover that 100 grams of tomatoes NaturaSì branded pasta costs €2,98; 250 grams of honey costs about €7; a packet of rice (pink) costs €5,50 per kilo; organic penne pasta costs €2,95 for a 400-gram pack. And so on.

But then why does NaturaSì, like many other companies that speak with extreme vigor about sustainability, choose such a pauperist messageThe only reasonable answer we can give to the question, if we do not enter into the mindset (to be excluded) that NaturaSì has chosen the path of self-harm to sell its products, is called marketing. Rather opaque, from our point of view.

In practice: the “sustainable” message of NaturaSì, like that of many other companies embarking on this path of a communication green very risky, targets consumers' conscious and unconscious minds. Those who can afford, thanks to their purchasing power, to feel "sustainable" and members of a "non-consumer society," obviously. only on paperFake poor. In reality, they buy everything that appeals to their conscience as citizens ready to "regenerate" themselves even when they're shopping.

ECO-FRIENDLY MARKETING

Where they convey such unreliable messages, when you read them closely, it's clear. The perception of sustainability is increasingly assimilated to a superficial pauperism, to a fight against consumption made of symbology and not in reality, to feeling like the best in class, not only in terms of income and social position, but also in terms of environmental choices.

At this rate, sustainability not only fails to take root, but if anything, it further separates societies, splitting them between the rich, who can afford to preach non-consumption and then consume as and when they want (even at higher prices), and the less rich, or almost poor, who instead feel like second-class consumers.

A conflict that will tend to escalate, making the world even less sustainable (and less regenerative) and increasingly dragging sustainability into the dictionary of the wealthy, with only one advantage: for those who sell their products thanks to marketing as exaggerated as it is implausible.