The Dirty Business of Greenwashing

Why Is Greenwashing Bad? 

I have a feeling you might already know the answer to this!

As we mentioned before, greenwashing misleads consumers; it deceives individuals who aim to make environmentally responsible choices by having them support companies falsely claiming those beliefs. 

57% of customers struggle to tell whether a business’ products are ethical, and 88% of Gen Z consumers say they don’t trust brands’ environmental, social, and governance (ESG) claims. This deception births skepticism and frustration among customers, compelling them to lose hope in the company at fault and water down trust in truly green brands, which often hinders a business’s success as 54% of consumers say they would boycott companies caught greenwashing.

Trust is one of the most valuable assets a brand can have, especially in today’s market where consumers have, quite literally, thousands of options and are more informed than ever before. They have access to a wealth of information, can easily compare products, and are quick to share their experiences — positive or negative — on any number of social media sites or review platforms. Negative reviews, social media outrage, and bad press can snowball into a much larger reputational crisis, damaging the brand's image well beyond the initial issue.

And restoring consumer trust after an incident of greenwashing requires more than just issuing apologies or making surface-level changes. It often takes years of genuine, transparent efforts to win back a customer base, and even then, some consumers may never return. 

The cost of ignoring sustainability goes beyond immediate environmental consequences; businesses that fail to prioritize sustainable strategies risk damaging their reputations in an era where consumers, investors, and regulators increasingly prioritize ethical and environmentally conscious practices. Data-driven strategies enable businesses to optimize processes, reduce waste, and design products with sustainability at their core.

Camille Fant Director of Corporate Social Responsibility

Akeneo

How Can You Spot Greenwashing?

To avoid being misled, here are some tell-tale signs of greenwashing and examples of companies doing it right:

1. Using vague words with no legal definitions

Greenwashing:  Brands that use terms like “natural,” “green,” or “eco-friendly” without explaining why their product is sustainable. If there’s no certification, data, specific details, or explanation, it’s likely just marketing fluff.

Sustainable: Patagonia provides detailed information about its materials, supply chain, and fair trade practices rather than using empty sustainability claims.

2. Pretty packaging with not-so-pretty practices

Greenwashing:  Utilizing excessive nature imagery such as trees, leaves, or vines on packaging that isn’t actually recyclable or sourced ethically.

Sustainable: Kuyichi, a Dutch denim company, has opted to use recyclable and FSC®-certified paper mailers sturdy enough to be reusable to ship their denim products around the world.

3. Selective sustainability

Greenwashing: When a company highlights one green aspect of a product (for example, organic cotton) while ignoring other major environmental issues ( excessive water consumption needed to produce organic cotton).

Sustainable:— Veja, a sustainable sneaker brand, breaks down the full environmental impact of its shoes, including materials, production, and fair wages. Instead of focusing on one aspect, the brand shows all of them—highlighting their fight to reduce waste.

4. Misleading labels and certifications

Greenwashing: If a product has a “certification” you’ve never heard of (or one that isn’t verified by a third party), it may be a fake eco-label designed to mislead consumers.

Sustainable: Look for real certifications like Fair Trade or GOTS (Global Organic Textile Standard), or check if the business is a certified B Corporation, like Back Market.

5. More talk, less action

Greenwashing: If a brand talks about sustainability but doesn’t back it up with actual policies, reports, or tangible actions, they might be all marketing, no mission.

Sustainable: Companies like Unilever publish detailed sustainability reports that outline measurable progress toward reducing their environmental footprint.

How Should Businesses Address Greenwashing?

While it’s great that customers are learning to spot the smoke and mirrors, greenwashing still thrives thanks to the companies that keep fanning the flames. Businesses must shift from performative sustainability to genuine, transparent, and accountable environmental efforts. And by integrating a Product Information Management (PIM) system, they can ensure that their claims are backed by accurate data, turning intentions into real impact.  Here’s how:

1. Provide clear and honest communication

Using vague descriptors like “eco-friendly” or “natural” without further detail is a common greenwashing tactic. Instead of using these noncommittal phrases, specify precisely what makes your product sustainable, whether it’s the materials used, ethical sourcing practices, or energy-efficient manufacturing processes. Be honest about areas where your company is still working toward sustainability improvements — consumers value transparency over perfection.

2. Utilize certifications and third-party verifications

Backing up sustainability claims with well-known certifications can provide the credence and reliability that your consumers are looking for. A PIM solution can store and manage sustainability certifications and third-party verifications, ensuring that only verified, compliant products are labeled as environmentally friendly, which can help you avoid false claims and provide transparency across marketplaces and retailers.

3. Encourage transparency throughout your entire supply chain

Sustainability initiatives shouldn’t be contained to just your individual business unit; they extend to your suppliers and partners. A truly sustainable company requires visibility and traceability across every supply chain stage, from raw material extraction to finished product distribution.

Of course, you should prioritize working with partners and suppliers who meet strict environmental and ethical standards, but some suppliers may have opaque practices, and small suppliers may lack the resources for full certification.

Utilizing technology like PIM solutions and supply chain management tools to track the environmental impact of each step can give you a more transparent view of your product's journey, even if your suppliers aren’t as mature. This investment not only helps reduce the risk of greenwashing but also provides a clear “sustainability roadmap” you can share with consumers.

4. Establish a process for continual assessment and improvement

Sustainability is a journey, not a destination. Consumer expectations and regulations are always evolving, so companies must be prepared to adapt their practices, update their goals, and continuously improve their environmental impact. Establish a roadmap with specific, measurable, and time-bound sustainability goals, and make sure you’re tracking your progress using tools that measure sustainability metrics like water usage, waste production, and carbon emissions.

Conduct regular internal and third-party audits to verify your claims, and involve stakeholders, including customers and employees, in setting and achieving these goals. Publicly communicate your progress, and don’t shy away from discussing obstacles. Being transparent about challenges, limitations, and adjustments demonstrates a genuine commitment to sustainability. Consumers respect brands that take the time to do it right over those that try to cut corners for the sake of appearances.

Paving the Path for Greener Pastures

While greenwashing remains a challenge, its growing exposure is pushing companies toward greater transparency and accountability. Consumers are becoming more informed, demanding real action instead of empty promises. Businesses that embrace honest sustainability practices, backed by clear data and certifications, will not only build trust but also drive real environmental impact.

The good news? As awareness grows, greenwashing becomes harder to hide, which paves the way for a future where sustainability isn’t just a marketing tactic, but a true commitment to the planet.

Avoiding Greenwashing

Discover how to avoid the pitfalls of greenwashing and build genuinely sustainable strategies that foster trust, align with regulations, and drive long-term business growth.

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Venus Kamara, Content Marketing Itern

Akeneo