Store shelves are full of sustainable, ecological and natural products. But even labeled "eco" cleaners still pollute our water. And how sustainable can a can of diced tomatoes be that sells for a pittance? Even the most polluting multinationals portray themselves in TV commercials and other promotions as sustainable companies. Greenwashing is the order of the day.
We speak of greenwashing when a company or organization pretends to be greener, more sustainable and more socially responsible than it really is. Some companies suffer from greenhushing or greenblushing: they are afraid of being accused of greenwashing and cannot or dare not disclose figures.
How do you recognize greenwashing?
Greenwashing is characterized by taking a small part of a company as a measure of the big picture. While part of an organization may be operating sustainably, this does not automatically mean that the entire company is sustainable. Sustainability encompasses the entire business process and involves not only the environment but also the people within a company.
Greenwashing often occurs when no clear evidence and in-depth information is provided. In many cases, the labels you are thrown around with turn out not to be independent.
Price is also an important indicator of the sustainability claim. A sustainable organization means fair prices for employees and therefore often a slightly more expensive price. Is a sustainable product suspiciously cheap? Then the claim is almost always too good to be true.
EU and CSRD: acting against greenwashing
The EU wants consumers to be better informed about which products constitute a sustainable purchase. The European Commission wants to prevent greenwashing by scrutinizing sustainability labels and seals. It is possible that in the future only certificates that have been verified by the government or an independent third party will be awarded.
Also, in November 2022, the EU adopted the Corporate Sustainability Reporting Directive (CSRD). This regulation requires many companies to report on the impact of their activities on people and the environment starting in 2024. By reporting according to set frameworks, this should lead to more transparency on sustainability and human rights for citizens, consumers and investors.
Labels and greenwashing
Some labels were created by companies or industry associations themselves. Also, sustainability labels often focus only on a small part of an organization. In this way, sustainability claims are quickly earned. See an overview of reliable and unreliable labels here.
Measuring impact against greenwashing
Greenwashing carries risks for companies. For example, financial losses can result from decreased confidence in the organization's overall reputation. There may also be liability claims and fines. Burden of proof and measuring impact is therefore the answer to greenwashing.
Calculated models and social proof are at the heart of sustainable marketing. Capture ecological progress and achievements in the annual report. Satisfied customers will see that your product or service contributes to a more sustainable world. If you as an organization stand behind your product or service, you will need to embrace innovation, but also be open to criticism and improvements. Only then will we move together with the changing world.
Milgro and measuring impact
Do you want to work on sustainability? Then take the first step and measure your impact. Milgro deploys software, hardware and knowledge to gain insight into waste and resources. The way your company deals with natural capital has visible and invisible effects. Milgro brings points of improvement to light. The result of our measurements is directly usable for compliance reports and sustainability goals.
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