Greenwashing Explained: What Is It And Why It Backfires

In the past, companies could get away with greenwashing because consumers weren't well-educated about environmental issues. Now times have changed.

Greenwashing Explained: What Is It And Why It Backfires

When I started my podcast 5 years ago, one of the first lines that I coined was "The time for greenwashing is over!" Now this line is more true than ever and it's both ethically and financially the right decision.

I want you all to understand the basic idea behind greenwashing and make sure you never greenwash.

Let's jump in! 

What Is Greenwashing?

If there was one word that I would use to describe greenwashing, it would be the word misleading. To put it even simpler, it's about trying to trick the consumer rather than actually protect the planet. But let's get a little more technical too.

Greenwashing is the practice of conveying a false impression or providing misleading information about how environmentally sound a product or company is. It involves making unsubstantiated claims to deceive consumers into believing a product has a greater positive environmental impact than it actually does.

Also known as "green sheen," greenwashing attempts to capitalize on the growing demand for environmentally responsible products. Companies may emphasize minor sustainable aspects of a product while hiding environmentally damaging practices elsewhere in their operations.

But what worked in the past misleading consumers no longer works as well. Always ethically questionable, but now it might not even make business sense anymore.

In short, it can backfire.

Why Greenwashing Backfires in Today's Market

In the past, companies could get away with greenwashing because consumers weren't well-educated about environmental issues. Marketing teams could slap a beautiful green leaf on packaging while also tinting their plastics green or brown. Furthermore, they could make vague claims about being "eco-friendly," and most consumers would simply accept these claims at face value.

Today, that's changed dramatically. Consumers are becoming increasingly knowledgeable about environmental issues and sustainability practices. This education has transformed greenwashing from a marketing advantage to a significant liability.

Take recyclable plastics, for example. Years ago, a company could proudly display the #7 recycling symbol on their packaging and receive praise for environmental responsibility. Now, educated consumers know that #7 (other plastics) are rarely accepted by recycling facilities in most locations, making this symbol potentially misleading if presented as evidence of sustainability.

This increased consumer awareness means:

  • Scrutiny is higher: Environmental claims are fact-checked by consumers, advocacy groups, and social media
  • Backlash is swift: False claims can go viral, creating reputation damage that spreads faster than ever
  • Trust is fragile: Once consumers discover misleading claims, they often extend their distrust to all of a company's statements
  • Competitors capitalize: Truly sustainable businesses quickly point out competitors' greenwashing
  • Regulations are tightening: Consumer complaints drive stronger enforcement and penalties

The transparency afforded by the internet and specifically social media means that the short-term gains of greenwashing are now overshadowed by the long-term damage of being revealed. What was once a clever marketing tactic has become a significant business risk.

Different Sustainability Approaches vs. Greenwashing

This point is where most people are mistaken.

You hear claims that people are greenwashing all the time and sometimes, those claims are very untrue.

It's crucial to distinguish between actual greenwashing and simply taking different approaches to sustainability. Using PCR (post-consumer recycled) plastic in packaging isn't greenwashing—it's one legitimate path toward sustainability, even if it differs from someone else's preferred solution.

Similarly, paper straws aren't inherently greenwashing. They address plastic waste issues, which may not be everyone's top environmental priority. Some might focus more on greenhouse gas emissions or water usage, but having different sustainability priorities doesn't make an initiative misleading.

True greenwashing is about deception, not just addressing different environmental problems than others might prioritize.

As I say, the only enemy is greenwashing, not someone who is solving a different environmental problem from you!

How To Spot Greenwashing

Greenwashing typically appears in several forms:

  • Vague Claims: Using terms like "eco-friendly" or "natural" without specific evidence
  • No Proof: Making environmental claims without substantiation or third-party verification
  • Visual Misdirection: Using green colors, nature imagery, or earth symbols to create a false impression

The Problem with Greenwashing

Greenwashing has several negative effects:

  • Confuses consumers trying to make responsible choices and also diminishes the reward of brands actually walking the walk. Said differently, it creates unfair competition for genuinely sustainable businesses
  • Misdirects resources away from effective environmental solutions and makes it hard for them to understand how they can truly protect the planet by voting with their dollars
  • Erodes consumer trust in all environmental claims, to the point where consumers just completely disregard sustainability as a charade, which it absolutely is not!
  • Can result in regulatory penalties and reputational damage, as seen in various court cases where big companies were accused of greenwashing. You should look them up to see that there can be a financial penalty in addition to harming your reputation.

Several frameworks help protect consumers from greenwashing:

Regulations and Guidelines

I don't want to get too deep into this, but just know that there are regulations and guidelines dedicated to protecting consumers from greenwashing.

  • The FTC Green Guides in the United States provide guidance for environmental marketing claims
  • The EU has adopted new rules requiring verification of green claims
  • The UK's Green Claims Code establishes principles for environmental advertising
  • Many countries are implementing similar measures with increasing penalties for violations

For Businesses: How to Avoid Greenwashing

So let's say you actually want to "walk the walk" but you aren't totally a sustainability expert. What should you do to make sure you do not greenwash?

In short, be honest about the environmental benefits and be willing to admit that the solution you choose is not perfect. No one with any understanding of sustainability is expecting perfection and those who expect it are becoming educated.

Here are a few quick tips:

  • Be specific and transparent about claims
  • Provide evidence and third-party verification when possible
  • Consider the full product lifecycle when possible
  • Avoid vague terminology like eco-friendly on your packaging
  • Do not use the word "biodegradable" to describe your packaging
  • Be honest about environmental challenges you are facing
  • Ensure marketing claims match reality

Conclusion

As environmental concerns grow, so does the importance of honest communication about sustainability. For consumers, learning to identify greenwashing is essential for making informed choices. For businesses, genuine environmental responsibility backed by transparent communication builds lasting trust and compliance with increasingly strict regulations.

The distinction between greenwashing and legitimate sustainability initiatives ultimately comes down to honesty, transparency, and the ability to substantiate claims with evidence.

To be honest is truly the best long-term strategy. It puts time on your side, meaning as more consumers get educated, they will appreciate you in greater and greater numbers.

It's a winning strategy!

Need help deciding whether or not a packaging solution is greenwashing? Book a meeting with one of our sustainable packaging experts today!

Michael Markarian

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