Greenwashing
Greenwashing is a marketing strategy that a company uses to portray itself as ecologically responsible even though it is not – or at least not to the extent that it claims in its communications.
What does the term "greenwashing" mean?
The color green in "greenwashing" symbolizes nature and environmental protection, while "-washing" stands for whitewashing, especially with regard to the ecological and sustainable performance of a brand.
The aim of greenwashing is not only to conceal and distract from critical aspects: it also involves spreading untruths in order to improve the image. Greenwashing affects several areas, such as the brand image, the manufacturing process and transport.
The three characteristics of greenwashing: opacity, misleading, exaggeration
These indications could be greenwashing:
- Opacity: Brands that engage in greenwashing tend to communicate in a nebulous and incomprehensible manner. The statements - for example from corporate influencers - are unsubstantiated and difficult to verify. They offer considerable scope for interpretation and lack substantive content. In addition, there is a lack of concrete actions that would factually prove the claims.
- Misleading: Consumers are deceived by unclear terms such as "natural", "ecological", "environmentally friendly", "regional" and "green". These keywords are not subject to any legal restrictions and can be used freely. Nevertheless, consumers often associate them with sustainability. In the area of ??cosmetic products, terms such as "natural cosmetics" or "organic cosmetics" are not legally protected.
(In the food industry, however, the terms "organic" and "eco" are legally protected. They may only be used if the product actually comes from organic farming.)
Further examples of misleading information:
- Brands sell products as "certified as sustainable", but the seals are made up. The goods could even harm the environment and people.
- So-called "beacon products": With these, brands stage their supposed sustainability, while their core business remains harmful to the environment. Green imagery is often used to create the impression that the brand as a whole acts sustainably. - Exaggeration: Some companies praise themselves for things that have long been required by law. They suggest an above-average commitment to greater sustainability, even though they are only fulfilling the legal requirements.
The EU is taking action against greenwashing
The EU Parliament has passed a Europe-wide law - the "Green Claims Directive". The main aim of this directive is to combat greenwashing and reduce confusion among consumers: they often do not know which of the numerous seals are actually credible and which are not. The directive requires brands to prove that their products are environmentally or climate-friendly. Only then are they allowed to use a corresponding label. Failure to comply can result in fines.
What does greenwashing mean for brand success?
Greenwashing poses significant risks to a brand's success. When consumers realize that a brand is cheating through greenwashing, this leads to a massive loss of trust. Especially on social media, this can quickly lead to a boycott of the brand and cause long-term damage.
The opposite phenomenon is not a solution: greenhushing - when brands keep quiet about their sustainability activities for fear of greenwashing accusations.
This is the only solution: brands must clearly and confidently fulfill their commitment to sustainability. They should anchor sustainability as an integral part of a long-term strategy with a clear focus. This is the basis for communication that is credible.
Similar to greenwashing is bluewashing: this is when a company overemphasizes or invents social activities.