Have you ever seen a company make bold sustainability claims—whether about carbon offsets, net-zero pledges, or other environmental practices—only to find out they don’t hold up under scrutiny? In an era where consumers are more environmentally conscious than ever, businesses face mounting pressure to showcase their commitment to sustainability. But making vague promises or overstating eco-friendly efforts can do more harm than good, damaging trust and credibility.
Avoiding this practice, known as greenwashing, is essential to build a value-driven brand that consumers can rally around. Companies can create meaningful change and strengthen their reputation by implementing transparent, responsible sustainability strategies.
What is greenwashing?
Greenwashing describes the harmful practice of presenting a company or product as environmentally responsible while failing to take meaningful action or otherwise misleading consumers about sustainability efforts. Greenwashing claims can entice consumers into thinking products or business practices have more significant environmental benefits than they do.
Companies use greenwashing practices to attract customers who prioritize environmentally friendly businesses. As demand for corporate social responsibility grows, so does attention from consumers and regulators. Greenwashing isn't always a deliberate attempt to mislead—sometimes, it stems from well-intentioned but poorly executed sustainability efforts. This guide will help you avoid greenwashing pitfalls and build genuine, transparent sustainability practices.
Common greenwashing tactics
There are several ways companies bolster an image of environmental friendliness. Product packaging and marketing materials often use terms like eco-friendly or all-natural without third-party verification. Another common method is highlighting one minor improvement while ignoring a larger environmental impact elsewhere.
Misleading imagery, such as green packaging or nature-inspired branding, is another tactic that can create a false impression of sustainability. In addition, hiding environmentally harmful practices or relying on weak certification labels can also mislead consumers into believing a product or company is more eco-conscious than it truly is.
How greenwashing harms your brand
Making a false or exaggerated environmental marketing claim may seem like a harmless way to attract customers, but it can have real consequences for your business. Companies that engage in greenwashing risk financial losses, damage to their reputation, and a decline in trust from consumers, stakeholders, and employees.
While some brands may think they can gain customers in the short term by appearing environmentally responsible, the long-term risks far outweigh any temporary benefits. The following are some of the ways greenwashing can negatively affect your business.
Costs money
Regulatory organizations like the United States Federal Trade Commission monitor and enforce truth in advertising, penalizing companies that engage in misleading environmental claims. In addition, according to Statista, more than half of millennial and Gen Z consumers consider sustainability when choosing brands. Many young shoppers are motivated by sustainability concerns and will exercise due diligence before choosing to support a brand. Consumer backlash can result in lost revenue, as shoppers seek brands that match their values and will take their business away from companies that make false claims about environmental commitments. As a result, greenwashing is a costly and risky practice.
Erodes consumer and stakeholder trust
Trust is difficult to earn and easy to lose. When consumers see that a brand's sustainable practices are exaggerated or false, they often turn elsewhere. Greenwashing also damages relationships with investors and business partners who prioritize environmental responsibility. As scrutiny over corporate sustainability increases, transparency and accountability become critical to maintaining confidence.
Damages reputation
A brand’s reputation is one of its most valuable assets, and greenwashing can quickly tarnish it. Exposure to misleading claims can result in negative press, social media backlash, and consumer boycotts. Public perception is shaped by authenticity. Companies that fail to meet their sustainability promises may struggle to recover from the reputation damage.
Lowers employee morale
Employees want to feel proud of where they work. If they discover their company’s environmental messaging is misleading, morale can suffer. A workforce that believes in the company’s mission is more engaged and motivated, while those who feel misled may disengage or leave for more genuine businesses.
Undermines genuine sustainability efforts
Greenwashing makes it harder for companies that are genuinely committed to sustainability to gain credibility. When misleading claims flood the market, it becomes difficult for consumers to distinguish between real progress and empty promises. This confusion harms individual brands and weakens the broader movement toward responsible business practices.
How greenwashing harms consumers
Greenwashing doesn’t just hurt businesses—it also takes advantage of consumers who are trying to make responsible choices. By exaggerating or fabricating sustainability claims, companies create confusion in the marketplace, making it harder for people to identify genuinely sustainable options.
Diverts business from genuinely green products
Ethical brands that invest in responsible sourcing, carbon reduction, and waste minimization may struggle to compete with companies that simply use green marketing. This slows progress toward a more sustainable economy, as consumers unknowingly support businesses prioritizing image over action.
Reduces trust in green claims
Consumers are becoming more skeptical of sustainability messaging—and for good reason. With misleading claims becoming so widespread, many people no longer trust brands promoting environmental efforts. This skepticism can hurt even companies that make meaningful changes, as their efforts get overshadowed by general consumer distrust. When greenwashing becomes the norm, genuine corporate sustainability initiatives lose credibility, making it harder for responsible businesses to gain consumer support.
Prevents informed decision-making
Consumers rely on accurate information to make choices. Greenwashing interferes with this process, making it difficult to separate fact from fiction. Without clear, verifiable claims, people may unknowingly buy products that don’t meet their ethical or environmental expectations. This leads to frustration and undermines the broader movement toward more open and informed consumerism.
Examples of corporate greenwashing
Some companies have faced backlash for misleading environmental claims. These high-profile greenwashing scandals highlight the importance of honesty and transparency.
Volkswagen hides greenhouse gas emissions
Volkswagen misled consumers and regulators by installing "defeat devices" in diesel vehicles to manipulate emissions test results. The company marketed its cars as environmentally friendly, claiming they met strict emission standards. According to Car and Driver, these vehicles actually emitted many times the legal limit of nitrogen oxides—major air pollutants—during real-world driving conditions. The 2015 scandal, known as Dieselgate, resulted in fines, lawsuits, and damage to Volkswagen’s reputation.
Starbucks introduces strawless lids with more plastic
In 2018, Starbucks announced the removal of plastic straws in favor of strawless lids, promoting the change as an environmental improvement. However, according to the Guardian, the new lids contained more plastic than the straws and lids they replaced.
While the move helped reduce plastic straw waste, the overall increase in plastic use led to criticism of the company’s sustainability efforts. The backlash highlighted the need for companies to evaluate the full environmental impact of product changes rather than focusing on surface-level sustainability claims.
H&M makes vague sustainability claims
Fast-fashion giant H&M has long promoted its sustainability efforts, including recycling programs and its “Conscious” collection, which claims to use sustainable materials. However, according to Fast Company, critics have accused the company of greenwashing due to a lack of transparency and concrete data. Investigations found that some "Conscious" items contained as much synthetic material as regular clothing, and the company provided little information on actual environmental benefits.
Ten strategies for authentic sustainability practices
Building a truly sustainable business requires more than just claiming eco-friendly initiatives—it demands genuine, measurable actions. These 10 strategies will help you implement sustainability practices that are transparent, impactful, and resistant to greenwashing, ensuring credibility with customers and long-term environmental responsibility.
Strategy #1: Get your team on board
A company’s sustainability efforts are only as strong as the people behind them. One way to combat greenwashing is to ensure that employees understand and support sustainability initiatives. This can help create a culture of accountability and authenticity, reducing the risk of greenwashing.
Build a sustainability mindset
Sustainability should be embedded in a company’s daily operations, not just its marketing strategy. Leadership must set the tone by integrating environmental responsibility into company values, decision-making, and long-term goals.
Encouraging employees to think sustainably in their roles—whether in product development, supply chain management, or marketing—ensures that eco-friendliness remains a guiding principle across all departments. Businesses can foster this mindset by offering incentives for sustainable ideas, creating internal green committees, and celebrating progress toward environmental goals.
Educate internal teams on green marketing
Marketing teams play a crucial role in communicating sustainability efforts, so it is essential that they fully understand the company’s initiatives and how to present them responsibly. Training sessions on ethical marketing practices can help teams craft transparent, data-driven messages free of misleading claims. Employees should be equipped to differentiate between factual statements and vague buzzwords so that all communications follow regulatory standards and consumer expectations.
Strategy #2: Develop a sustainable brand story
A compelling sustainability narrative strengthens brand identity and builds consumer trust. Your company’s brand story is a great place to integrate your sustainability message and to make sure that green initiatives are part of your core identity (never just a fad).
Align brand values with sustainability efforts
Sustainability should be part of your brand's core values. Businesses should identify how their environmental efforts connect to their mission and communicate this alignment across all channels.
Whether a brand prioritizes ethical sourcing, waste reduction, or renewable energy, sustainability initiatives should authentically reinforce these commitments. Consumers are more likely to support brands that demonstrate a natural, purpose-driven approach to sustainability than those using it solely as a marketing tool.
Showcase long-term commitment
Sustainability is an ongoing process. Highlighting long-term goals, progress updates, and continuous improvements builds credibility. Instead of focusing only on what has already been achieved, businesses should share future plans, such as net-zero commitments, material innovations, or ethical supply chain improvements. Transparency about challenges and areas for growth further reinforces authenticity and trust.
Go in depth on social media
Social media provides a dynamic and engaging platform for showcasing a brand’s sustainability journey. Short-form videos on platforms like TikTok or Instagram can highlight behind-the-scenes content, and interactive Q&A sessions allow businesses to connect more deeply with consumers.
Brands can use social media to explain complex sustainability efforts in digestible formats, highlight partnerships with eco-conscious organizations, and respond to customer concerns in real time. Authentic storytelling on digital platforms fosters engagement and helps reinforce a brand’s commitment to meaningful environmental action.
Strategy #3: Use trustworthy sustainability claims
Consumers are increasingly skeptical of environmental claims, so it’s essential to communicate sustainability efforts accurately and honestly. Trustworthy claims help build long-term credibility and protect against accusations of greenwashing.
Communicate in clear and specific language. Vague statements like eco-friendly or green product can be misleading. Instead, brands should use specific, verifiable language explaining environmental benefits. Providing measurable data—such as carbon emissions or water usage reductions—helps consumers make informed choices.
Avoid overpromising
Consumers value honesty. Overstating sustainability achievements can backfire, leading to a loss of trust. Instead of making sweeping claims, highlight tangible actions already taken and set realistic goals for future progress.
Make distinctions between aspirations and actions
It's important to differentiate between what a company aspires to achieve and what it has already accomplished. Terms like ongoing commitment or working to improve clarify that efforts are in progress rather than completed.
Provide real examples of progress
Concrete examples help validate sustainability claims. Companies should highlight specific initiatives, such as sourcing recycled materials, reducing waste, or investing in renewable energy, to provide credibility and context for their claims.
Strategy #4: Rely on data to support environmental claims
Sustainability claims carry more weight when backed by concrete data. Consumers and stakeholders expect transparency, and quantifiable metrics help establish credibility while reducing the risk of greenwashing.
Quantify environmental benefits
Provide specific data to support environmental claims, such as “reduces carbon emissions by 30%” or “made from 80% recycled materials.” Providing precise figures helps customers understand the real impact of your sustainability efforts.
Provide full lifecycle assessments
A product’s environmental footprint extends beyond its materials. Lifecycle assessments evaluate the energy, water usage, and emissions associated with production, transportation, and disposal. Sharing these findings reinforces transparency and allows consumers to make informed choices.
Publish sustainability reports
Annual sustainability reports detail progress, setbacks, and future goals. These reports should include verified data, third-party audits, and tangible outcomes from sustainability initiatives. Making this information publicly accessible builds trust and demonstrates a long-term commitment to environmental responsibility.
Strategy #5: Use reliable visuals
Visual elements are a powerful way to shape consumer perceptions of sustainability. Misleading imagery or overused design elements can create the illusion of eco-friendliness without substantiating claims, leading to greenwashing concerns.
Reduce excessive nature imagery
While images of forests, leaves, or wildlife can evoke environmental responsibility, overuse—especially without supporting evidence—can be misleading. Use nature visuals only when they genuinely reflect the product’s sustainability attributes.
Limit overuse of the color green
Green is commonly associated with sustainability, but excessive use of the color can create false impressions. Instead of relying on color to convey eco-friendliness, provide clear, factual information about environmental benefits.
Strategy #6: Promote legitimate third-party certifications
Third-party certifications provide independent validation of a company’s sustainability efforts, offering credibility and transparency. These certifications are awarded by industry-recognized organizations based on rigorous environmental and ethical standards. Highlight recognized certifications like the following on your packaging and in your marketing campaigns. These recognized symbols reassure consumers and stakeholders that environmental claims are legitimate.
Leadership in Energy and Environmental Design (LEED)
Developed by the US Green Building Council, Leadership in Energy and Environmental Design (LEED) certifies that a building meets high environmental performance standards for energy efficiency, water conservation, and sustainable materials. Promoting LEED-certified facilities demonstrates a commitment to reducing environmental impact.
ENERGY STAR
ENERGY STAR is a widely recognized certification for energy efficiency. Founded in 1992, this is a US government program that ensures appliances, electronics, and buildings meet stringent energy-saving criteria. ENERGY STAR certification reinforces a company’s dedication to reducing energy consumption.
B Corporation
A B Corporation credential shows that a for-profit business has been certified by B Lab, a global nonprofit organization for its overall social and environmental impact. The certification requires high standards in governance, sustainability, and ethical business practices and signals a commitment to responsible operations.
Fairtrade
Fairtrade certification is available to companies worldwide whose products meet certain environmental, economic, and ethical labor benchmarks. In addition, products with the certification have been sourced through Fairtrade-certified supply chains.
Strategy #7: Provide information about packaging and marketing materials
When it comes to your packaging and marketing materials, transparency helps build trust and ensures customers can make informed purchasing decisions.
Avoid deceptive green packaging
Deceptive green packaging misleads consumers by using colors, symbols, or vague claims to falsely suggest environmental benefits. Misleading design elements—such as earth-toned colors, nature imagery, or vague wording like eco-friendly—can create a false impression of sustainability. Ensure that verifiable data backs all packaging claims. Use precise terminology, such as 100% post-consumer recycled content or compostable in industrial facilities, to avoid greenwashing.
Offer clear information on recyclability and materials
Consumers often struggle to determine whether packaging is recyclable or made from sustainable materials. Clearly labeling recyclability and material composition on packaging helps guide responsible consumer behavior. Using standardized symbols and terminology prevents confusion and encourages proper waste management.
Include QR codes for more detail
Space constraints on packaging can make it difficult to provide in-depth sustainability information. QR codes allow customers to access detailed explanations about sourcing, recyclability, and sustainability efforts. Linking to third-party certifications and environmental reports enhances credibility and fosters transparency.
Strategy #8: Work with sustainable supply chain partners
Your company's environmental impact doesn't have to stop at your office door. Partnering with environmentally responsible suppliers helps ensure that sustainability commitments extend beyond internal operations.
Research suppliers' environmental claims
Not all sustainability claims are credible. Conduct thorough due diligence to verify suppliers’ environmental commitments. Look for certifications, third-party audits, and transparency in reporting. Avoid suppliers with vague or unverified claims, as they can put your company at risk of unintentional greenwashing.
Communicate responsible sourcing efforts
Consumers and stakeholders want to know where materials come from and how they are produced. Communicate your company’s responsible sourcing policies through website disclosures, product labels, and sustainability reports. Highlight partnerships with ethical suppliers and share measurable progress toward sustainability goals.
Hold suppliers accountable
Sustainability requires continuous oversight. Set clear environmental expectations for suppliers and establish regular audits to ensure compliance. If a supplier falls short, take corrective action or seek alternative partners. A strong accountability framework reinforces your company’s sustainability commitment and builds consumer trust.
Strategy #9: Collaborate with sustainable organizations
Partnering with credible environmental organizations strengthens a company’s sustainability efforts and reinforces its commitment to real change. These collaborations offer expertise, resources, and validation, helping businesses make a more meaningful impact.
Work with reputable groups
Collaborating with established sustainability organizations signals authenticity. Partner with groups known for their rigorous environmental standards to lend credibility to your initiatives and help avoid accusations of greenwashing. Carefully vet potential partners to ensure their values and practices match your company’s sustainability goals.
Focus on meaningful initiatives
Superficial partnerships can backfire if they appear performative rather than impactful. Instead of one-time sponsorships or marketing-driven collaborations, invest in initiatives that lead to measurable environmental improvements. Whether reducing emissions, conserving resources, or funding research, meaningful actions build trust with consumers and stakeholders.
Build long-term partnerships
Establishing ongoing collaborations with respected organizations ensures consistent progress and accountability. Long-term partnerships also provide access to evolving best practices, allowing businesses to adapt and strengthen their environmental strategies.
Strategy #10: Make a plan to handle greenwashing accusations
Even the most well-intentioned businesses can face greenwashing claims. A well-prepared response strategy can help mitigate damage and reinforce credibility. Your company's crisis response plan should include the following steps to address greenwashing accusations.
Respond quickly and transparently
Delays or vague responses can make a company appear evasive or guilty. Acknowledge the concern promptly, clarify the facts and provide concrete details about your sustainability claims. Avoid defensive language—focus instead on transparency and accountability.
Engage third-party verification
Independent verification from reputable organizations can lend credibility to your environmental efforts. Certifications, audits, and lifecycle assessments demonstrate that objective standards back your claims. Proactively engaging with third parties can also help prevent accusations before they arise.
Communicate an action plan
If a claim is found to be misleading, outline clear steps to address the issue. This might include revising marketing materials, updating sustainability goals, or improving internal processes. Publicly committing to more rigorous oversight and compliance demonstrates a genuine commitment to improvement.
Key takeaways
- Transparency and accountability are essential to avoid greenwashing: Companies must ensure that sustainability claims are backed by verifiable data, clear communication, and third-party validation to maintain consumer trust and credibility.
- Superficial sustainable practices can backfire: Vague or false claims, misleading visuals, and symbolic gestures without measurable impact can lead to public backlash and damage a brand’s reputation. Genuine commitment requires long-term strategies and continuous improvement.
- Employee education and consumer engagement strengthen sustainability efforts: Building an internal sustainability mindset and using ethical marketing practices help prevent greenwashing, while clear, data-driven messaging fosters trust with consumers and stakeholders.