The sustainability trend has seen more eco-conscious consumers emerge, and some businesses are trying to take advantage of this by employing deceptive practices to attract more eco-minded consumers. This act is referred to as greenwashing, where brands falsely claim to be 100% eco-friendly as a strategy to boost sales.
In the past few years, environmental awareness has increased dramatically, leading to a higher demand for eco-friendly products and services. An increase in demand for green products has led to more companies engaging in these deceptive practices. These deceptive practices are bad for business and ruin consumer’s trust in a brand. Understanding the marketing strategy behind greenwashing helps protect consumers and hold corporations accountable.
In this guide, we explore 10 well-known greenwashing examples, examine how these practices work, and provide expert insights, and tips to protect consumers from brands making false claims.
What Is Greenwashing?
Greenwashing is bad for business –it occurs when companies deliberately provide misleading information about their product or service being 100% more environmentally sound than they truly are. Brands’ guilt of this practice may highlight a single eco-friendly feature but ignore the environmental impact of the entire production process. Greenwashing is a false marketing strategy that companies utilize to gain an advantage in the fast-growing demand for sustainable products and services.
The term “Greenwashing” was coined by Jay Westerveld in 1986 in response to the hotel industry’s attempt to convince guests to reuse towels by claiming it would help the environment. Today, greenwashing is widely practised by businesses, from food and beverage companies to multinational corporations, you can only imagine the environmental effect of this deceptive practice. It does nothing but mislead loyal consumers who trust their favourite brand to make the best decision for the environment.
The Seven Sins of Greenwashing
- The “Seven Sins of Greenwashing” developed by TerraChoice Environmental Marketing is a useful framework to better understand how greenwashing works.
- The Sin of Worshiping False Labels: Creating false certification labels or designing them to appear suitable and official to mislead consumers
- The Sin of the Hidden Trade-off: Claiming a product is “eco-friendly” based on an attribute such as recycled paper while ignoring other environmental impacts like water usage and pollution.
- The Sin of No Proof: Making an eco-friendly claim without any reliable evidence.
- The Sin of Irrelevance: Making an environmental claim that is true but not important. An example is saying that a product is CFC-free when CFC is already banned.
- The Sin of Vagueness: Using meaningless terms like “all-natural” without clarity.
- The Sin of Lesser of Two Evils: Claiming a product is more eco-friendly than others in its category, even if the category itself is harmful –for example, “organic cigarettes”.
- The Sin of Fibbing: Blatantly lying about environmental claims.
10 Greenwashing Examples
Let’s look at companies that have come under fire due to false claims about their product.
#1. Coca-Cola: Branded as the World’s Largest Plastic Polluter
The world’s largest beverage company is first on this list of companies accused of greenwashing. Coca-Cola has run campaigns touting its commitment to reduce plastic waste –but these claims are contradicted by the company’s reliance on of plastic.
One of the most notable instances was the company’s introduction of Coca-Cola Life, a beverage sold as a healthy, low-sugar alternative packaged in a green bottle –which gave it an eco-friendly appearance. Experts soon debunked Coca-Cola’s “healthier” claims for its new product. It didn’t stop the company from making more of their plastic packaged beverages which continue to pollute the environment to date.
Analysis: This is a typical example of The Sin of the Hidden Trade-off –highlighting a minor benefit while ignoring a bigger threat to environmental pollution.
#2. ExxonMobil: Misleading Sustainability Claims
American multinational oil and gas corporation ExxonMobil has also been accused lately of greenwashing. The company in 2020 claimed it was committed to fighting against climate change and investing in renewable energy. However, it was discovered through thorough investigation that from 2010 to 2018, only 0.2% of ExxonMobil’s capital expenditure went to renewable energy.
This contradiction is particularly glaring since ExxonMobil remains one of the major contributors to global greenhouse gas emissions. The oil and gas corporation has spent significant amounts on PR campaigns emphasizing its climate change initiatives but their actions have been criticized for being superficial.
Analysis: This is an example of The Sin of No Proof, ExxonMobil claims it is making efforts to mitigate climate change but there isn’t much evidence showing they are doing so.
Learn More: What Are the Effects of Deforestation on Climate Change?
#3. Nestlé: False Claims of Recyclable Packaging
Nestlé is another company that has been accused of greenwashing –this is because of their claims that they will achieve 100% recyclable or reusable packaging by 2025. However, as of 2022, just about 66% of Nestlé’s packaging is recyclable or reusable.
The food company’s reliance on plastic packaging generates more plastic polluting the environment, especially in landfills and the ocean. Nestlé’s slow progress on its promise to achieve 100% recyclable or reusable packaging has raised concerns regarding its commitment to sustainability.
Analysis: This is a case of The Sin of Fibbing –why make grand promises when you are not 100% certain you will deliver them?
#4. Walmart: Environmentally Responsible Business Model Claims
Walmart has long promoted its sustainability initiatives. They have made progress with solar panel installations in their stores to be more energy-efficient. However, critics have identified some discrepancies with Walmart’s massive global supply chain which relies on low-wage labour and long-distance transportation that generates more CO2.
While the American multinational retail corporation has made efforts to reduce its carbon footprint, specifically in its store operation, its overall environmental impact is still high due to the scale of its logistics.
Analysis: This case falls under The Sin of the Lesser of Two Evils –trying to improve a sector while ignoring larger issues like supply chain emissions.
#5. Volkswagen: Falsified Emissions Data
German automobile manufacturer Volkswagen’s 2015 emissions scandal is one of the most highlighted examples of greenwashing. Volkswagen had promoted its diesel vehicles as being eco-friendly –they even presented false emission data to regulatory bodies.
An investigation by the U.S. Environmental Protection Agency (EPA) soon discovered that Volkswagen’s diesel vehicles emit up to 40 times more pollution than the German automobile manufacturer reported. The result of the EPA’s investigation saw Volkswagen fined billions of dollars.
Analysis: Volkswagen’s case is a clear example of The Sin of Fibbing –they blatantly lied about their vehicle being eco-friendly when it’s quite the opposite.
Learn more: 10 Eco-Friendly Appliances You Need in Your Home
#6. Royal Dutch Shell: Misleading Carbon Footprint Claims
Royal Dutch Shell has been at the centre of several environmental controversies –from oil spills to its reliance on fossil fuels. Despite public criticism, the company believes it’s at the forefront of mitigating climate change, claiming they are investing in renewable energy and working towards net-zone carbon emissions.
People are still sceptical that Royal Dutch Shell’s investing in renewable energy is only a fraction of the company’s total spending –with most of its capital invested in oil and gas production.
Analysis: This is an example of The Sin of Vagueness –where Royal Dutch Shell makes claims about sustainability with no concrete evidence of substantial change.
#7. McDonald’s: Paper Straws and Green Initiatives
The world’s largest fast-food restaurant chain in 2019 launched a campaign to reduce plastic waste by upgrading its plastic straws with paper ones. But did this happen? It was soon discovered that the paper straws McDonald’s introduced were not recyclable, leading critics to label the campaign as a superficial greenwashing effort.
McDonald’s claimed that the paper straws were part of their sustainability efforts to reduce plastic waste. In reality, the world’s largest fast-food restaurants failed to address the bigger issue of single-use plastic packaging and waste generated by the fast-food industry.
Analysis: The case of McDonald’s falls under The Son of the Hidden Trade-off. They focused on a small improvement while ignoring the larger environmental impact.
#8. Chevron: The “Human Energy” Campaign
Chevron’s “Human Energy” advertising campaigns portrayed the American multinational energy corporation as an environmentally conscious energy provider. However, Chevron remains one of the largest producers of fossil fuels globally –and its carbon emission contributes significantly to climate change.
Chevron’s initiative has been criticized as a huge distraction to divert public attention from the company’s involvement in environmental pollution.
Analysis: This is a case of The Sin of Irrelevance, as Chevron’s sustainability advertising was a huge distraction from its harmful environmental practices.
#9. Amazon: Carbon Neutrality Pledges
Amazon has made ambitious pledges to go carbon-neutral by 2040, just a few years from now. The company has invested in renewable energy projects and electric delivery vehicles as part of an effort to cut down on their carbon emissions. This won’t go unnoticed as critics soon pointed out that Amazon’s extensive packaging, data centres, and shipping operations remain a major contributor to CO2 emissions.
Additionally, the company has also faced criticism for us volume of packaging waste generated by its deliveries much of which are not recyclable.
Analysis: This is another example of The Sin of Vagueness. Amazon is making huge claims about future sustainability but fails to address its current practices.
#10. British Airways: Carbon Offset Controversy
British Airways has promoted its carbon offset program –an initiative that allows passengers to purchase credits to offset the carbon emissions from their flights. Despite the airline’s efforts, environmentalists argue that carbon offsets are ineffective and more of a distraction to divert attention from the airline’s emissions.
Critics believe that carbon offset allows big companies like British Airways to continue with emissions while avoiding real reductions in carbon output.
Analysis: This falls under The Sin of Lesser of Two Evils as British Airways promotes offsetting rather than addressing the root cause of emissions.
How Government and Regulator Are Responding
Greenwashing has become a serious issue attracting the attention of governments and regulators now protecting consumer’s interests. In the United States, the Federal Trade Commission (FTC) developed the Green Guide –guidelines helping companies to avoid making misleading claims.
In some cases, brands have been fined for misleading claims and false advertising. The Volkswagen’s diesel vehicle emissions scandal for example was fined billions of dollars for false environmental claims. Also, Royal Dutch Shell has faced legal action over its misleading sustainability claims, notable in the Netherlands where Shell was ordered to lower its CO2 emissions by 45% before 2030.
The Impact of Greenwashing on Consumers
Greenwashing is bad for business, it ruins consumer trust. Studies show that when consumers learn of a trusted brand’s false or exaggerated environmental claims, they are less likely not to trust that companies and others making similar claims. According to a 2021 survey by the European Consumer Organisation (BEUC), more than half of European consumers said they were less confident about green claims due to emerging reports of greenwashing.
Expert Insight on Greenwashing
According to marketing expert Dr Terra Weiss, “Greenwashing is damaging because it capitalizes on consumers’ good intentions. When companies mislead people about their sustainability efforts, they not only damage their reputation but also slow down genuine efforts toward sustainability.”
Environmental scientist Dr Samuel Greene adds, “Consumers need to demand more transparency. If a company claims it’s eco-friendly, ask for the proof. Look for certifications like Fair Trade, USDA Organic, or B Corp that hold companies accountable.”
How to Spot Greenwashing
- Look for Third-Party Certification: Labels like Fair Trade Certified, B Corp, and USDA Organic indicate that the product meets specific environmental and social standards.
- Check the Details: Beware of claims like “all-natural” or “eco-friendly” as they can be misleading. Instead, look for specific claims like “made with 50% recycled materials” or “contains biodegradable ingredients.”
- Research Company’s Overall Practices: A brand’s sustainability page may sound convincing but do thorough research. Is the company transparent about its supply? What percentage of their energy is from renewable sources?
- Avoid “Green by Association”: A product labelled sustainable doesn’t mean the entire brand prioritizes sustainability. Carefully check if the brand’s sustainability efforts extend beyond individual products.
Conclusion: The Future of Greenwashing
Companies will continue to try to capitalize on the growing trend as more eco-conscious consumers emerge. However, as consumers are becoming more observant alongside advocacy groups and regulatory bodies being more vigilant, companies will find it difficult to get away with false claims.
Additionally, consumers will need to stay informed –demanding transparency and holding companies accountable for their environmental impact. Only through concerted efforts—both from businesses and consumers—can we pave the way toward a more sustainable future.