Saturday, October 15, 2022

Why do Companies Greenwash and How can we Spot them?

 Why do Companies Greenwash and How can we Spot them? 

Grace Hyunjoo Lee


The term “Greenwashing” describes when companies claim environmental records that are unsubstantiated. Why do companies greenwash? Companies greenwash because they want to mislead customers who choose to buy environmentally friendly products into their own brand. In other words, to appeal to environmentally conscious consumers since the demand for those products is rising. 


These false claims from companies are hard to detect, which makes it harder to find companies who are giving doubtful claims and confront them. A simple way to spot greenwashing as customers are if there are no facts or details supporting their claims. Companies that are truly green describe how their products differ from their competitors. They are happy to write down each consciously chosen material and ingredient in their products. 


These are some strategies used in greenwashing that customers and consumers should look out for:

  1. Unclear or vague wording

  2. Suggestive imagery: images that lead customers to adopt a specific view or perspective of the brand

  3. Unrelated claims: focus on an insignificant attribute



    Kenton, Will. “What Is Greenwashing? How It Works, Examples, and Statistics.” Investopedia, Investopedia, 13 Sept. 2022, https://www.investopedia.com/terms/g/greenwashing.asp. 

    Zhang, Yiping. “Beware of Greenwashing in Finance.” Impakter, 29 Sept. 2021, https://impakter.com/beware-of-greenwashing-finance/.

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