Greenwashing

Greenwashing is a deceptive practice in which a company presents an environmentally responsible image without actually committing to sustainable action, investing more in promoting a green image than in delivering real results. The term was coined in 1986 by environmentalist Jay Westerveld to describe marketing that exaggerates a company's environmental efforts.

Greenwashing does more than mislead consumers: it undermines genuine climate efforts. By diverting attention from real solutions, it slows progress towards international goals such as those of the Paris Agreement and erodes trust in sustainability as a whole.

Types of greenwashing

Greenwashing can take many forms, some more subtle than others:

• Incomplete information: highlighting one positive attribute while hiding significant negative impacts.
• Fake or self-declared labels: using unverified, self-created environmental certifications.
• Vague language: terms such as 'natural', 'green' or 'eco-friendly' with no clear definition or evidence.
• Distraction: focusing on minor sustainable actions to draw attention away from larger problems.
• Hidden trade-offs: presenting a product as sustainable based on a single aspect while ignoring its overall environmental impact.
• Misused offsetting: calling a product 'carbon neutral' on the basis of offsets alone, without first cutting its own emissions.

The impact of greenwashing

Greenwashing has real consequences:

• Misinformation: consumers find it harder to make informed, sustainable choices.
• Unfair competition: companies that genuinely invest in sustainability are disadvantaged against those that only pretend to.
• Delayed action: resources and attention shift away from the transition to a low-carbon economy.

Research on the drivers of greenwashing (Delmas and Burbano, California Management Review, 2011) shows that it can erode public trust in environmental initiatives, ultimately damaging both corporate reputations and climate policy.

How to identify greenwashing

Spotting greenwashing calls for critical thinking. Useful checks include:

• Verify certifications: look for recognised, independent labels such as ISO 14001, EU Ecolabel or FSC, rather than self-declared badges.
• Look at the whole life cycle: consider manufacturing, transport and disposal, not just the finished product.
• Read the sustainability report: check whether a company's disclosures and data match its marketing claims.
• Be wary of buzzwords: treat undefined terms like 'natural' or 'green' with scepticism.

Examples across sectors

• Fashion: 'sustainable collections' that still rely on polluting materials (see fast fashion).
• Food: products labelled 'natural' or 'organic' without meeting official standards.
• Energy: firms promoting renewable projects while continuing to expand fossil fuels.

Rules against greenwashing

Regulators are increasingly cracking down on misleading environmental claims. It is worth being precise about which rules actually exist, because a lot of published material still describes a directive that was dropped.

European Union

• The Empowering Consumers for the Green Transition Directive (EU) 2024/825 is the EU's main rulebook on green claims, and it applies from 27 September 2026, which is now imminent. It amends the Unfair Commercial Practices Directive and bans generic environmental claims (such as 'eco-friendly', 'climate-neutral', 'green' or 'biodegradable') unless they are backed by recognised evidence. It also bans sustainability labels that are not based on a recognised certification scheme or established by a public authority, and product-level carbon-neutrality claims that rest on offsetting. We cover what changes and how to prepare in our article on the anti-greenwashing directive that applies from September 2026.
• The separate, more detailed Green Claims Directive was only ever a proposal, and the European Commission withdrew it in June 2025. It is not law, it is not in the legislative pipeline, and no company needs to prepare for it. Any content presenting it as a rule that will 'come into force' is out of date.
• The European Green Deal continues to push for greater transparency and sustainability in business.

Spain

• The Ministry for the Ecological Transition (MITECO) and consumer-protection rules require companies to be able to substantiate their sustainability claims with verifiable data, in line with the EU framework.

How to combat greenwashing

Fighting greenwashing requires transparency, accountability and the right tools: companies should provide verifiable data to support every environmental claim, align with robust standards, prioritise real emission cuts over offsets, and educate consumers so they can make informed choices. Backing claims with measured data, rather than slogans, is also central to building genuine responsible consumption and a credible circular economy.

At Manglai we help companies measure their carbon footprint and prepare verifiable sustainability reporting, so their environmental claims rest on real data rather than greenwashing. Discover how Manglai can help you.