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In today’s world, businesses are more committed to sustainability than ever, which is great. But as more companies try to stand out in this field, there's also a big risk: greenwashing. This term refers to companies that exaggerate or falsify their "green" actions when they’re actually not doing much for the environment.
Falling into greenwashing can not only make people distrust your brand but can also severely damage your reputation. In this article, we’ll explore how you can avoid it and build an authentic and transparent sustainability strategy.
Strategies to avoid greenwashing
Understanding greenwashing: What is it and how does it affect companies?
Greenwashing happens when companies inflate or make up their environmental commitment, trying to appear more sustainable than they really are. This is not only dishonest but can also lead to serious consequences, like fines, loss of credibility, and damage to the brand’s image.
A real example, in 2015, Volkswagen was accused of greenwashing when it was revealed that they had manipulated diesel engines to appear more eco-friendly during emissions tests. The financial and reputational fallout was massive, and consumer trust took a big hit.
Establishing an authentic sustainability strategy
To avoid greenwashing, your company's sustainability efforts need to be based on real, measurable actions. This means setting clear, achievable goals that align with your business's values and capabilities.
Don’t commit to more than you can actually deliver. Instead of making huge promises, start with realistic short- and medium-term goals, like reducing energy consumption by a specific percentage or eliminating plastics in certain products.
A Nielsen study found that 66% of global consumers are willing to pay more for products from companies that are truly committed to sustainability. However, they’re also more critical and won’t believe just any claim.
Transparency: The key to effective communication
Being transparent is the best way to avoid greenwashing. Companies should communicate both their achievements and the challenges they face on their path to sustainability. It’s not just about what you’ve accomplished but also about what still needs improvement.
Best communication practices:
Public reports: Publish reports detailing your sustainability progress and challenges, based on real, verifiable data.
Third-party verifications: If you want to boost your credibility, seek out external audits or certifications like B Corp or reporting under Global Reporting Initiative (GRI) standards.
According to a Cone Communications study, 88% of consumers want companies to publicly share their commitments and progress on sustainability.
Avoid vague or baseless claims
One of the hallmarks of greenwashing is making vague or ambiguous statements. Phrases like “we are a green company” or “committed to the environment” are too general and don’t provide concrete information about what your company is actually doing.
Avoid using empty terms. If you claim your company is reducing its environmental impact, back it up with specific data, like “we’ve reduced energy consumption by 30% in the last 12 months” or “we’ve switched to recycled materials for 50% of our products.”
For example, the sustainable fashion brand Patagonia stands out for its transparency, providing detailed information on how and where its products are made, and openly admitting where they still need to improve, which strengthens customer trust.
Focusing on long-term sustainability
Greenwashing often focuses on short-term initiatives or campaigns that aren’t backed by a long-term commitment. To avoid this, companies should adopt a long-term view of sustainability, integrating it into their corporate strategy and decision-making processes.
Ensure sustainability is part of every level of the business, from the supply chain to customer relations. This will not only increase your credibility but also create a more significant and lasting impact.
IKEA is a great example of this long-term approach. Its sustainability strategy includes everything from product design to the use of renewable energy in its stores, and it has committed to being 100% circular by 2030.
Using verifiable data and measuring impacts
To show your true commitment to sustainability, you need data. Companies must measure the impact of their actions, whether it’s reducing their carbon footprint, resource consumption, or increasing energy efficiency.
Sustainability software can help collect and analyze data, making it easier to track progress and create reports that validate your achievements.
According to The Sustainability Consortium, 62% of consumers don’t trust sustainability claims from companies that aren’t backed by verifiable data.
Trust as the foundation of sustainable success
Avoiding greenwashing is essential to building trust with your consumers, employees, and investors. An authentic sustainability strategy, based on real actions, clear goals, and open communication, will not only protect your brand from potential crises but also help you seize the opportunities that come with a world increasingly focused on sustainability.
At The Good Goal, we believe that sustainability isn’t a trend but a continuous responsibility. We’re here to help you create authentic and transparent strategies that generate a positive impact on both your business and society.
Worried your company might be falling into greenwashing? Discover how our tools can help you build a real and measurable sustainability strategy.