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Home»Startup»3 Ways Businesses Can Avoid Greenwashing
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3 Ways Businesses Can Avoid Greenwashing

August 21, 2022No Comments5 Mins Read
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3 Ways Businesses Can Avoid Greenwashing
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More than 50 years ago, a picture of a little blue marble in a sea of endless black helped catalyze the modern environmental movement when it threw Earth’s vulnerability into sharp relief. Over the decades, countless activists, politicians, and community leaders have worked to address the urgent issues of pollution, climate change, and natural resource depletion. But healing and preserving our planet isn’t just the job of the individual, and the public has become increasingly aware of corporations’ roles in climate change and disasters.

Thanks to consistent market, social, and political pressure, many corporations have taken steps to clean up their acts—not only because it’s the right thing to do, but also because it’s good for business. Consider, for instance, that over a third of global consumers are inclined to pay a premium for sustainability. This behavior is part of a broader trend of consumers seeking political and social affirmation in the products they buy.

Business leaders have learned that if they can effectively message their environmental initiatives, they’ll win consumers’ hearts and minds for life. But when a business spends more time marketing itself as sustainable than it does actually mitigating its environmental impact, it’s simply greenwashing. And that will have the opposite effect.

The Volkswagen emissions tests scandal might be one of the most egregious examples of malicious greenwashing. However, greenwashing comes in all shapes and sizes. It might look like a fast-fashion brand misrepresenting its clothing recycling program or a single-use plastic company using pristine naturescapes in its advertising. Some businesses might participate in greenwashing without even realizing it simply because of the lack of universal standards around ESG reporting.

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Consider these three tips to ensure that you’re accurately representing your company’s sustainability efforts and avoiding the trap of greenwashing:

1. Put in the work.

At its core, avoiding greenwashing is about putting in the work to create a greener global economy. Knowledge is power, so step one is learning as much as possible about your supply chain and operations, including what your partners are doing and any laws or regulations that might affect your business.

There won’t always be black-and-white answers. For example, to what degree are you responsible for your parts suppliers’ emissions? It’s hard to say, but it is apparent that the bigger your company, the greater the pressure to clean up your supply chain. So, collect accurate emissions information from your supply chain and consider partners with lower emissions.

Next, set goals and create internal policies to guide your efforts. This should include an understanding and application of acceptable accounting protocols and life-cycle analysis in the context of your business. You’ll also need to understand your strategy’s cost, potential revenues, and time frame.

Once you start executing, collect detailed data, measure your progress against the plan, and revise as needed. Done right, you’ll learn a lot during this process—after all, you know your operations better than anyone. Finally, report your progress to stakeholders such as customers, investors, and partners. For an extra boost of credibility, you might seek out third-party verification from a trusted organization.

2. Stop using vague language.

Language is the most powerful tool humans possess. It’s estimated that the average English-speaking adult knows anywhere from 20,000 to 35,000 words. Yet, businesses continue to lean on fluffy language with no apparent meaning when discussing their sustainability efforts, and it’s hurting their reputations.

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Buzzwords such as “green,” “natural,” and “environmentally friendly” communicate little about the actual environmental impact of a product or service. Therefore, make sure your claims are unambiguous. This could be as simple as including more detail. For instance, rather than merely saying your product is made with organic cotton, you could include the specific percentage: “Our towels are made of 80% organic cotton.”

Additionally, be careful of inadvertent greenwashing. Terms like “compostable,” “biodegradable,” and “plastic-free” might seem like harmless marketing jargon but actually have precise regulated definitions. You don’t want to find yourself fighting a lawsuit because your marketing team used these terms in consumer-facing messaging. Ultimately, consumers don’t care if you “didn’t mean to” mislead them; they’ll simply care that you did.

3. Release the need for perfection.

Despite what you might assume, the public doesn’t expect your business to have all the answers, to always get the best results, or to achieve net-zero emissions against impossible odds. They do, however, expect you to be honest.

“Businesses must hold themselves accountable for their carbon footprint,” says Shashi Menon, cofounder and CEO of EcoEngineers, a consulting and auditing firm specializing in low-carbon fuels and decarbonization strategies. “They need to honestly communicate what they’re doing about it and admit the limitations they face. This level of honest communication and self-accountability is lost when businesses always try to be perfect.”

The good news is that an honest appraisal of the business climate risks and opportunities often uncovers ways to achieve the seemingly impossible. You have a chance right now to demonstrate how your business is working to improve its environmental footprint, and taking a human approach will build consumer trust in your products and your brand.

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With more consumers concerned about the environmental impact of the goods and services they buy than ever, businesses are incentivized to implement more sustainable practices and communicate those changes to stakeholders. But there’s a fine line between green marketing and greenwashing. If you hope to win discerning consumers over, you need to walk that line carefully.

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