Greenwashing is a marketing strategy in which companies present themselves as more environmentally friendly than they actually are, while their activities continue to harm the environment. These companies make vague or misleading claims about their contribution to sustainability and lack transparency about their environmental performance.
1. Lack of transparency: There is little to no information available about the company’s actual contribution to sustainability.
2. Exaggerating minor green initiatives: Small sustainable actions are heavily promoted, while the company’s core polluting activities continue as usual.
3. Use of questionable labels: Companies refer to certifications they created themselves, often with little oversight and weak criteria.
Consequences of greenwashing
Some companies use terms like “climate neutral,” “eco-friendly,” or “sustainable” without being able to substantiate these claims.This is not permitted by law. Such misleading sustainability claims can pose serious risks. These claims can also damage a company’s reputation among current and potential customers. Regulators may impose fines of up to €900,000 per violation, or even a percentage of the company’s annual turnover. The Dutch Authority for Consumers and Markets (ACM) actively investigates cases of greenwashing. Companies that make false or misleading claims about the sustainability of their products may receive a warning or even a fine. In this way, the ACM ensures that consumers are given accurate information and that genuinely sustainable businesses are protected from unfair competition.
What does European regulation do?
European regulation aims to combat greenwashing by banning general environmental claims on products without proper evidence, prohibiting sustainability labels that are not based on approved certification schemes or not issued by public authorities, and restricting advertising for products that may shorten their lifespan. It also targets misleading claims that present products as repairable when they are not.
Don’t be easily swayed by sustainability claims on packaging or in advertisements. By staying informed and critical about what is truly sustainable, you can make conscious choices that contribute to a fairer and more sustainable world.
Want to learn more about greenwashing? This guide by WWF provides a clear overview of what greenwashing is.
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