What Is Greenwashing?

Summary

Greenwashing is a term that has increasingly entered the everyday world since the climate change catastrophe became a focus for governments, pressure groups and citizens around the world. In this article, we'll look at what greenwashing means and why it matters, especially for businesses in the UK who are keen to do right by the planet and steer clear of greenwashing pitfalls. Greenwashing is when a company engages in activities or behaviours that give the false impression of substantial environmental commitment. Alternatively, greenwashing might be used by a company to make its products look eco-friendly while diverting attention from its not-so-green practices. We probably don't need to spell this out but greenwashing is essentially false advertising. When a company engages in greenwashing, it's not just a little white lie they're telling. It's a cynical attempt to take advantage of the growing demand for ethical and environmentally friendly products. What's more, if and when the truth comes out about a companies greenwashing practices, it can damage their reputation with customers, especially if they've paid more for a product under the impression that it's good for the planet.

Key information

• •Impact brand image – reducing your brand to negative associations, which can lead to consumers to feel they have been lied to, resulting in lost trust and brand loyalty.
• •Reduced sales – damage to brand image and a loss of reputation can lead to declining sales, which go to the very heart of business success
• •Increased churn – meaning customers moving from your product or service to a competitor that’s more environmentally friendly
• •Fines and regulator oversight – claims of greenwashing could lead to regulators building a case against your company and imparting hefty fines on your business.
• •Be manufactured following sustainable practices
• •Free of chemical toxins and ozone depleting materials
• •Be produced ethically, avoiding poor working conditions, slave labour and child labour
• •Be made from sustainable or recyclable materials
• •Avoid packaging that cannot be recycled or is tough to recycle
• •Not be disposable, e.g. fast fashion, mobile phones, white goods
• •Not impact biodiversity or protected areas such as rainforests or other wildlife habitats.
• •Not omit or hide important information;

Practical guidance

• •Source: [What Is Greenwashing?](https://lawhive.co.uk/knowledge-hub/corporate/what-is-greenwashing)

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