The term “greenwashing” refers to a practice in which companies present themselves as more environmentally friendly or sustainable than they actually are. This is often done by using environmentally friendly terms, symbols and marketing strategies to enhance the image of their brand.
What is “greenwashing”?
Climate change, sustainability and environmental protection are important issues that concern society. Companies are aware of this and are specifically trying to exploit this consumer interest. Companies make so-called “green claims”, i.e. advertising statements or assertions that aim to emphasize the environmental friendliness or sustainability of their products, services, supply chains or even general business practices. These claims can be found in advertising materials, on labels or packaging and are intended to attract consumer interest and encourage them to buy sustainable products or services. Often, however, the actual results do not match the expectations created by the first impression of the advertising. Companies may claim that their products are“carbon neutral“, “environmentally friendly” or“organic” without having taken substantial measures to reduce their environmental footprint or they do so in a way that deviates from consumer expectations. Often the first impression given by advertising does not stand up to closer scrutiny. For example, companies may use recyclable packaging even though their production processes are still harmful to the environment. This can lead to misunderstandings, as the consumer wrongly assumes that the entire product is sustainable, although this only applies to the packaging. This often ambiguous and unclear advertising practice not only undermines consumer confidence, but also hinders efforts to promote genuine sustainability.
How do you recognize greenwashing?
It’s important to be critical and look beyond the surface of green claims. Here are some signs of potential greenwashing:
- Vague claims: No specific evidence or information is cited to support the sustainability claims.
- Use of misleading images: Use of environmentally friendly images or symbols without a clear link to actual practice.
- Lack of certifications: No independent certifications from recognized organizations that can confirm environmental friendliness.
- Contradictory actions: Continuation of environmentally damaging practices despite emphasis on sustainability.
The consequences of greenwashing
Since greenwashing constitutes a deception of the targeted consumers, it is a misleading commercial act under competition law, which is prohibited under Section 5 para. 1 UWG is prohibited. Apart from reputational damage and loss of trust among customers, greenwashing can also lead to costly warnings under competition law, as well as claims for removal and injunctive relief and claims for damages. It is therefore essential to be aware of the now strict (European) requirements before advertising with statements on sustainability and to comply with them.