3 Ways Companies Greenwash Their Products to Drive Profit

Climate change has been a mainstay of public debate for the last decade. This fact, coupled with the forced transparency that comes with having a social media presence, has pushed most companies to rebrand. They highlight a more "sustainable" mission in their commercials, About Us page, and social media accounts, even if it doesn't really exist. They've changed their packaging and logos to appear more eco-friendly. 

This phenomenon is called greenwashing. It's the practice of appearing more eco-friendly or sustainability-minded without actually making an effort to back up the green persona. Some murky practices include false advertisements, irrelevant claims, and making vague statements.

What is a greenwashing example?

Let's go over the three most common greenwashing practices.

Company A recently came under fire after they were exposed for burning all their so-called recyclable paper packaging that customers had sent through a mail-in recycling program, free of charge. In response to the controversy, the company sent out a statement that claims burning the packaging produce less waste than recycling them. This is an extreme example of greenwashing because the company's response is a complete lie.

Here is a second scenario where the greenwashing in question may be less subtle. The same company's "recyclable" packaging is certified sustainable and green according to a committee that they created. The issue here is the company is providing certifications and claims that may or may not be true—customers can't and probably won't refute the claims, after all.

Consider this third scenario: the paper packaging is marketed as plastic-free. In other cases, this is a win, but if the packaging is made of recyclable paper, then the plastic-free claim is irrelevant. There is no plastic in the equation. This bit of information only aims to misdirect the customer from other questions like where the paper is produced, how it's produced, and how it's disposed of.

Is greenwashing illegal?

Yes and no. The ultimate answer depends on the country or state, but in many cases, you can create a valid claim against greenwashing. Some legal-backed arguments include misleading green marketing, breaching a contract between seller and buyer, and not meeting quality standards according to the buyer. In the U.S., greenwashing is explicitly illegal. There's even a set of codes aptly named Green Guides that help keep companies accountable for any deceitful claims.

Companies are quick to jump on the green bandwagon, but many are unwilling to actually join the pro-environment side. So what can we do as consumers?

• Call out and question companies about vague environmental claims.
• Don't be fooled by "green" packaging and marketing.
• Look into a company's yearly corporate social and responsibility report or sustainability report to vet their business plan.

We can't take every greenwashing company to court, but we can hold them responsible. We can also give young companies the benefit of the doubt and applaud them for the sustainable practices they do employ. For now, it's our job to challenge, inquire, and stay informed.