Businesses are more eager to cash in on the great green transition, but don’t be fooled by every claim.
These days, almost everyone is paying close attention to the transition to clean energy. Governments are trying to do more to become among the first to successfully transition from fossil fuels to renewable energy. Consumers are more intentional about only doing business with organizations that are environmentally-friendly. They’re more critical about companies that fail to take a hard stance on climate change. And studies show they’re even willing to spend a little more if it’s in the name of helping the environment.
The trouble is that businesses are well aware of this, and some have been using it to an unfair advantage. But there are signs you can look out for if you’re trying to work for a company that is actually green in more than just name, or if you want to patronize a business where your money will actually be used for clean energy investments.
What is Greenwashing?
Most of us have heard of catfishing — the deceitful practice where someone online uses a fake image or video and claims that the image is of them when it’s really not. Greenwashing is something similar, but for environmental, social, and corporate governance (ESG) goals. It’s when businesses pretend or claim to be environmentally friendly or to be committed to fighting climate change, when the reality of the situation doesn’t match up.
Why Do Businesses Greenwash?
Because almost everybody in society is paying more attention to climate change, businesses face more pressure than ever to pledge to adopt more environmentally-friendly practices. This includes things like hiring sustainability experts that can help them effectively transition. Companies don’t want a negative public image that can hurt their business. So, they turn to greenwashing to either exaggerate or, unfortunately, outright lie about how green they are.
It’s not just “small-fry” businesses, either. Just recently, big corporations like Nestle, Coca-Cola, and Danone have been hit with greenwashing accusations that the containers they use may not be as environmentally friendly as their advertising claims. Those claims are still being investigated, but it just goes to show that greenwashing is something to look out for in this current age.
Signs of Greenwashing
Even though it is becoming more common, there are ways you can look out to make sure you’re not misled by a so-called green company.
1. They’re Vague
If a company claims to be green but they seem preoccupied with using buzzwords and imagery instead of stating their stance, beware. This could be a sign that they’re just trying to cash in on the hype without being authentic about it.
2. Their Products or Brand is Not Approved or Reviewed by Environmental Organizations
Environmental watchdogs are on the lookout for companies that will hurt the green transition. They’re eager to call these brands out, so a company getting a seal of approval from a reputable environmental organization is a big deal. You should do some research on the company or brand you’re interested in. Check whether a neutral third-party environmental group has signed off on their efforts.
3. They Don’t Have Any Hard Evidence of Being Environmentally Friendly
Companies that are actually serious about ESG goals should have done some reporting on it. Or at the very least they should have some proof or something to show for investments in clean energy. If a company doesn’t have proof of their commitment, that’s a sign that they might not be the real deal.