According to a recent report by First Insight on Gen Z consumer spending, 62% of respondents said they prefer sustainable brands and a whopping 73% said they’d pay 10% more for sustainable products. Eager to earn Gen Z’s business, companies must prove they really walk the sustainability talk. If they exaggerate or misrepresent their brand’s eco-friendly features—whether it be for clothes, dinnerware, travel, dry cleaning, or anything else—they’ll likely lose the trust of most zoomers.
So here’s the problem: How can you as a retail shopper be sure that a product or service is truly green and not greenwashed? Here are some pointers on knowing how to spot greenwashing and avoid it.
What is greenwashing?
Greenwashing is a marketing tactic meant to mislead eco-conscious consumers into believing a product or service is more environmentally friendly—or less environmentally damaging—than it really is. Greenwashing is a form of psychological deception akin to gaslighting used to generate sales or favorable reviews of brands as environmentally conscious when they are not.
Greenhushing—when a company actively conceals its environmental impact—is a related strategy also meant to deceive environmentally conscious shoppers.
Greenwashing laws
The US Federal Trade Commission publishes the Green Guides to help consumers and businesses understand the meanings of common environmental marketing claims such as recyclable, biodegradable, low-carbon, or ozone-friendly, and use them correctly. Unfortunately, the Green Guides are not law and, so, unenforceable.
Last published in 2012, the Green Guides are currently undergoing a multi-year review and update begun in 2023.
Lacking specific federal laws aimed to regulate greenwashing, a growing number of groups or local or state governments are using consumer protection legislation to bring legal actions against companies charged with greenwashing. So far, several lawsuits against fossil fuel, meat, and soft drink companies alleging that they are misleading consumers about their efforts to reduce carbon emissions or plastic pollution, respectively, have been filed.
Usually ahead of the US on environmental protections, the European Union passed a revised Greenwashing Directive in January 2024. Considered the strictest in the world, this law is intended to protect consumers against misleading environmental claims made by businesses.
How to spot greenwashing
Marketers have become more clever in their greenwashing tactics intensified in the last decade when the international Paris Agreement to keep carbon emissions at or below 2.0℃ above pre-industrial levels spurred many more companies to introduce net-zero carbon pledges. Unfortunately, many of them are unsubstantiated as noted by the United Nations’ High Level Expert Group on Net-Zero Emissions. “We must have zero tolerance for net-zero greenwashing,” said UN Chief Antonio Guterres.
So, investigate a company’s environmental claims thoroughly. First look for documented transparency. In the case of carbon emissions, find out if and how a company is tracking them over time. Look for evidence of emission cuts. Note: Carbon offsetting is not evidence of emission reductions but simply pollution rearrangement.
The absence of documentation is a clear signal of suspected greenwashing.
Second, vague terms like eco-friendly or natural are red flags especially if there are no data to back them up. It’s best to look elsewhere for a sustainable product.
Lastly, don’t be deceived by apparent endorsements from mainstream groups reputed to be pro-environment. For example, the World Wildlife Fund and the Nature Conservancy help greenwash the climate impacts of the meat and dairy industries.
How to avoid greenwashing
As companies make all sorts of technical claims about the sustainability of their products and services, it’s becoming increasingly more difficult for average consumers to understand them. Don’t be deterred from trying.
Instead, first educate yourself on the finer details of a company’s environmental claims. If you don’t have the time for a crash course on climate science, search out non-industry sources to get an unbiased view. For instance, if you’re interested in learning more about the scientific validity and degree of transparency of the net-zero carbon emissions plans of major corporations like Amazon and Walmart, see the 2023 Carbon Market Watch report.
Second, consider the entire life cycle of a product or service from its beginning to end. Find out if raw materials were extracted and processed without causing environmental harms or human rights violations. Determine if a product will be recycled or upcycled at the end of its current life in circular economy fashion. Ask the company for documented information on these points. If they can’t—or won’t—supply it, spend your money elsewhere.
Lastly, determine if the product is certified by a trustworthy group. An example is the Oeko-Tex Standard for textiles. Unfortunately, not all certifications can be trusted, even those which may be considered reputably green. The Forest Stewardship Council (FSC) is a case in point. Do your own research before purchasing.
