What is Greenwashing?

Greenwashing involves companies giving a misleading impression of their environmental work in advertising or other communications. This can happen through exaggerated or unfounded claims, vague wording, or highlighting one positive action while hiding larger negative effects. For example, companies may market products as "climate-friendly" or "sustainable" without providing clear evidence or certifications.

There are laws and regulations, both in Sweden and at the EU level, that make greenwashing illegal. The EU's Sustainability Reporting Directive (CSRD) and guidelines for environmental claims aim to ensure accurate information.

To avoid greenwashing, companies should base their claims on clear data, third-party reviews, and transparent sustainability goals. Consumers can also be vigilant by scrutinizing labels, requesting proof, and being critical of sweeping environmental promises.

How to avoid Greenwashing

62% of business leaders are concerned that their sustainability efforts might appear dishonest to the public, according to Capgemini's "A World in Balance" report from 2024. Here are five tips for your company to avoid greenwashing:

1. Define clear sustainability goals and strategies

Start by clearly defining your company's sustainability goals and strategies. Be concrete in your commitments and avoid general statements that may be interpreted as greenwashing. For example, instead of setting a goal to become more "climate-smart," set a goal for how much you will reduce your carbon emissions. Establish measurable goals and develop a clear plan to achieve them. And most importantly, don't let the sustainability strategy become just a document with empty promises—work actively to achieve the goals!

2. Be transparent and honest

Openly share information about your company's emissions, sustainability efforts, and any challenges you are facing. Don't be afraid to admit mistakes or shortcomings and show clearly how you're working to improve. A simple and clear way to get started is by using GoClimate's CO2 transparency service.

3. Educate and involve employees

Make sure the team understands what sustainability actually means and engage employees by showing them how they can actively contribute to sustainable development in their daily work. This way, you create a culture where sustainability is an integrated part of the company’s values and decisions. GoClimate can help with this by offering various types of workshops.

4. Review and verify claims

Before you communicate your sustainability efforts or make claims, ensure that what you say is clear and true. Avoid using vague terms like "climate-smart" or "green" in your marketing, as these are not specific enough and can be misleading. Directly associated with your claims, there should be more information for further detail, such as a link to your CO2 transparency page.

5. Listen to feedback and be open to improvements

Receive feedback from customers, stakeholders, and the broader community and use it to continuously improve your company’s sustainability work. Stay up to date with prevailing laws and regulations and what applies to various sustainability labels. Be open to constructive criticism and show that you take it seriously by taking action to address any shortcomings or challenges.

Greenhushing

Greenhushing is a term used to describe when companies or organizations avoid communicating their sustainability efforts for fear of making mistakes or not meeting expectations. This can happen when companies are unsure of their performance, don’t have all the answers, or worry about criticism if their efforts are not perceived as sufficient. While transparency and accuracy are important, greenhushing means not sharing the progress you are actually making, which can hinder the development towards a more sustainable future.

Why is greenhushing a problem?

Not communicating sustainability efforts not only loses companies the opportunity to inspire others, but it also means they miss the chance to build trust and show their customers and stakeholders that they are taking responsibility for the environment and society. It can also create a culture where sustainability is seen as so difficult or complex that it is not worth discussing.

Instead, companies should be proud of the progress they make, whether big or small, and use their platform and marketing to motivate others to do the same.

Transparency and communication make a difference

Greenhushing can be as harmful as greenwashing because it prevents collective progress towards a sustainable future. By being open and communicative about their sustainability goals and achievements, even when they are not perfect, companies that want to make a difference can create positive momentum and help make sustainability an integral part of the business world.