Seven Cardinal Sins of Greenwashing that Can Take Your Business Under
28 October 2024
6 Mins Read
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We all know how greenwashing has seeped into the world of different business verticals. Be it tech startup ideas or automobile companies, greenwashing has become the norm of the day.
Therefore, if you are looking to save yourself from the pitfalls of the thing, follow along and learn about the seven sins of greenwashing.
Therefore, let us dive right in and explore how greenwashing can be detrimental in the long run.
Understanding Greenwashing
The world has really evolved and has started moving towards more sustainable consumer solutions. This means clients, customers, and investors are only going for businesses that are sustainable.
This consciousness is excellent and can really help businesses grow. However, this is not the case anymore. This noble sensibility has given rise to a sinful practice known as greenwashing.
What is greenwashing? You can read more about it in our other articles as well. However, to get the basics right, greenwashing is a form of business masquerading where businesses pretend to be more sustainable and conscious.
Meanwhile, they need to do more in terms of sustainability.
How Does it Work?
The urban liberal clientele has demonstrated a green shift in the last few years. This shift is excellent as it is all about giving our planet another chance. Consequently, businesses have realized this shift’s importance and joined this effort.
However, some companies have only adopted aesthetics rather than mentality. In other words, they mask themselves to be sustainable, but in reality, they do nothing regarding sustainability, ethics, etc.
The saddest part of this is the overall scale of the whole deal. Countless companies have actively involved themselves in such practices. This is primarily due to lackadaisical ESG norms and a general lack of general industry standards.
Markers of Greenwashing
Greenwashing has indeed become huge in recent years. In all honesty, every company is engaging in greenwashing in some sense. Therefore, having a clear idea about the overall working and markers of greenwashing can actually help you.
Therefore, in this section, we will take a moment to examine some of the most prominent markers of greenwashing so that you can identify it in the wild. Here we go!
- Fluffy Industrial Language: This is one of the most significant and most prominent markers of greenwashing. If you find a company using fluffy language like ‘eco-friendly,’ ‘all-natural,’ etc., it is a usual sign of greenwashing.
- Misleading Visuals: In most cases, greenwashing companies adopt visual aesthetics that reflect the ‘organic’ and ‘eco-friendly’ aesthetics.
- False Certification: A company that is greenwashing its identity often encumbers you with a barrage of false certifications and awards.
Yes, there are other markers of greenwashing as well. However, these three markers are the most prominent markers for identifying greenwashing. Therefore, as soon as you see these markers, just run!
Seven Sins of Greenwashing
Greenwashing can be a massive problem for the consumer and investors. It can lead to a widespread impact on the business landscape.
Therefore, if you plan on entering the sustainable investing business, you need to clearly understand the seven sins of greenwashing. This part of the article is focused on the sins of greenwashing. Here are some of the most prominent sins of greenwashing that plague the current business landscape.
Sin #1
One of the biggest problems of adopting sustainable solutions is the hidden trade-offs. In other words, the step forward comes with a cost. The question is how a company will navigate this cost.
Take the 2019 McDonald’s scandal, for example. The fast food chain promises its clientele that it is moving towards sustainability. As a result, they decided to replace their plastic straws with paper straws.
This move was applauded in its initial stage. However, this move had a hidden tradeoff. The plastic straws were reusable. Meanwhile, the paper straws were simply for one-time use only. The company knew this but chose to hide this tradeoff from the public.
Sin #2
The second cardinal sin of greenwashing is the sin of providing no proof. In most instances of greenwashing, companies are accused of hiding evidence. This is formally known as greenwashing and is a separate topic of discussion.
This is a huge deal, and in all honesty, most businesses engage in this sin. You will often come across a company claiming that a certain percentage of their products are recycled. This sounds fancy and sustainable, but it is a form of deception.
In many such cases, companies will not present any form of data to back up their claim. This can really harm the overall ecosystem as money is made at the cost of integrity.
As a result, this is seen as one of the most prominent and detrimental sins of the seven sins of greenwashing.
Sin #3
Vagueness is the most significant friend of deception. Whenever there is deception, there is bound to be a certain sense of vagueness attached to the whole deal.
In some cases, organizations tend to use words that insinuate that their business operation is sustainable in nature.
As we have already pointed out, flowery language is a significant marker. We would like to add to that. Vagueness, coupled with flowery language, can be a highly volatile concoction. It can deceive consumers en masse.
Companies engaging themselves in green vagueness tend to develop flowery language that tends to tap into the liberal consciousness of the urban clientele. Patagonia is one such company. The brand seems to term itself as sustainable, but in originality, the brand is known to cut corners.
Sin #4
With the rise of greenwashing, false green certification has also been on the rise. More and more companies have resorted to buying certification from these shell companies to brandish them.
This is called the sin of worshipping the false gods. These certifications are not relevant and do not amount to anything. These certifications dupe customers into thinking the organization has undergone some sort of screening.
This form of deception is most common in maritime businesses. Back in 2001, the International Maritime Organization IMO registered around 12,635 cases of fake certificates in the industry.
Sin #5
Another major sin of the seven sins of greenwashing is the sin of irrelevance. In some cases, companies advertise unimportant environmental features. This has become more and more rampant as this is a safer way to greenwash identities.
These features of sensibilities do not matter as they are irrelevant and do not add to any social, environmental, or other form of change. The best or the worst part of this form of greenwashing is that there is no credible way to hold a company accountable.
One of the best examples is the usage of CFC products. CFC products have been banned for over 30 years. However, you will still see products termed ‘CFC-Free.’ This seems harmless, but looking at things retrospectively, you will understand that this glorifies the bare minimum.
Sin #6
We have often chosen the lesser of the two evils. Well, this is an excellent approach in most cases. Honestly speaking, the time for genuinely sustainable changes has long gone. Human beings cannot lower their carbon footprints. It cannot happen.
As a result, companies would often come up with detrimental products but not to an alarming level. Subsequently, market that product as a sustainable product. This creates a vicious cycle that can lead to significant problems.
Burger King has been accused of this form of greenwashing. They marketed their products with the moniker, ‘reduced methane beef.’ This brought the methane levels down by 33%. However, critics pointed out that this was negligible.
Sin #7
The final sin that we would like to point out is the sin of fibbing. Fibbing is the most brash and blatant form of greenwashing. This variant of greenwashing is all about outright lying. Companies would delve into baser instincts and end up lying.
For example, if a company claims that burning fossil fuels does not emit carbon, People know this might be a lie. However, they would accept this claim, thinking there might be some truth to the statement.
In classic fibbing cases, companies would even use fake data to back up their outrageous claims. Therefore, this is one of the most audacious sins in the list of 7 sins of greenwashing. Sadly, most companies get away with such behavior without any repercussions.
The Wrap
So, these were some of the prominent and audacious seven sins of greenwashing. However, just remember that as businesses grow, so do the means of greenwashing.
Therefore, if you revisit this article in a few months, you will come across a newer set of sins riddling the business landscape.
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