Easily recognize greenwashing companies

Have you ever stood in the supermarket and wondered whether the “green” product in your shopping cart is really as environmentally friendly as it seems? Many people are familiar with this feeling of uncertainty. When companies use clever marketing to give themselves a greener image than is actually the case, this is known as greenwashing.

The truth behind green promises

Imagine a typical situation: You need new coffee capsules. The word “compostable” on the packaging catches your eye and you immediately have a good feeling. You can already see yourself simply throwing the capsules into your garden compost and effortlessly doing something for the environment.

Unfortunately, the reality is often very different. Many of these capsules can only be composted under very specific conditions in industrial facilities – facilities that most of us do not have access to. They therefore hardly decompose better than ordinary plastic waste in the organic waste garbage can at home or on the compost heap.

What exactly is greenwashing?

The coffee capsule example hits the nail on the head. Greenwashing is basically a deliberate deception. Greenwashing companies use vague, irrelevant or simply false statements about sustainability in order to profit from the growing desire for environmentally friendly products. This is more than just clever advertising, it is strategic deception.

Instead of initiating truly fundamental and often expensive changes in production or the supply chain, some companies prefer to invest in a green façade. They polish up their image with emotional images of untouched nature, calming earth tones on the packaging and sometimes even with self-invented eco-labels.

Greenwashing not only undermines the trust of us consumers. It also harms the companies that are really serious about sustainability and invest a lot of money and effort in a better future.

Why the topic is so hot right now

Awareness of climate change and environmental destruction is growing, and with it the desire to shop more sustainably. Some companies are taking advantage of this. A study by the EU Commission found that no less than 53% of environmental claims made by companies are vague, misleading or unfounded. With this flood of false information, it is almost impossible to distinguish real sustainability from a mere show.

This guide is designed to help you develop a better feel for the tactics behind the green sham. We want to give you the tools you need to critically scrutinize the promises of greenwashing companies. Because only by making informed choices can we, as consumers, make a real difference and support the brands that mean business. If you want to learn more about how marketing and genuine environmental initiatives can go together, read our article on sustainability in marketing.

What greenwashing really means

Greenwashing is now on everyone’s lips, but what is actually behind it? It is far more than just a catchy buzzword. Basically, it’s a deliberate tactic aimed at exploiting consumers’ growing environmental awareness – and often abusing their trust in the process. Rather than bore you with a dry definition, let’s look at why this method is so seductive and yet so problematic.

Imagine a typical situation in the supermarket. You are standing in front of the shelf and a product immediately catches your eye. Not necessarily because of the price, but because of the packaging: soft shades of green, perhaps an idyllic landscape or a stylized leaf. You unconsciously associate positive attributes such as “natural”, “healthy” or “environmentally friendly” with it.

That is precisely the crux of the matter. Greenwashing companies take advantage of these psychological reflexes. They deliberately use a visual and color language that we instinctively associate with nature and sustainability in order to create a positive image. The problem with this is that the actual product or the business practices behind it often tell a completely different story.

The hidden costs of the green façade

The deception has far-reaching consequences that go far beyond the individual disappointed customer. Greenwashing systematically poisons trust in the entire market and creates an atmosphere of mistrust that ultimately harms everyone.

Of course, the most obvious victims are us consumers, whose good intentions are being exploited. But the damage goes much deeper:

• Honest companies are being punished: companies that really put money and effort into sustainable projects, fair supply chains or reducing their ecological footprint are being put in clan detention. Their serious efforts are simply drowned out by the noisy marketing bluster of the dazzlers.
• Progress is being slowed down: when consumers get the feeling that “green” promises are just empty words anyway, cynicism spreads. The willingness to pay a little more for truly sustainable products dwindles. This deprives the market of the decisive incentive to drive forward the urgently needed green turnaround in the economy.

Greenwashing is essentially an attempt to take credit for sustainable action without doing the necessary work. It undermines the credibility of the entire market.

A growing awareness – and the consequences

The good news is that the public is not asleep. Awareness of this issue is growing noticeably. A representative survey conducted in 2023 showed that around 56% of Germans can already relate to the term “greenwashing”. They describe it quite aptly as the gap between what companies say about their environmental protection and what they actually do.

This increased awareness leads to healthy skepticism. For greenwashing companies, this becomes a tangible business risk, as it is difficult to restore an image once it has been squandered. You can read more about the impact on brand perception in this study on the perception of greenwashing.

Ultimately, a company cuts itself in half with greenwashing. It may be a short-term strategy that promises quick success, but in the long term it leads to a massive loss of trust and reputation. And that destroys customer loyalty in the long term.

The methods of green deception

To successfully expose greenwashing, we need to know the rules of the game of deception. Companies that practice greenwashing often fall back on a tried and tested arsenal of tactics. At first glance these often seem convincing, but on closer inspection they fall apart. If you understand these methods, you will immediately have a better sense of what is genuine and what is not the next time you go shopping.

Basically, it’s about recognizing the psychological levers that are specifically used to create a sustainable image where in reality there is none. From vague terms to completely irrelevant claims – the range is astonishingly wide.

Vague and unproven claims

This is probably the most common and simplest tactic. Companies adorn their products with general, positive-sounding terms that have no verifiable meaning. Words such as “environmentally friendly”, “green”, “close to nature” or “sustainably produced” are the classics here.

Without concrete figures, recognized certificates or comprehensible explanations, these terms are worthless. So always ask yourself: What exactly does “green” mean in this context? Does the product save water? Was it manufactured using renewable energy? If the company does not provide an answer, the statement is probably just hot air.

Remember: True sustainability is specific and measurable. Vague terms are often the first and clearest warning sign of greenwashing.

The following graph illustrates the extent of the problem: it shows how many environmental labels are not validated, how many misleading claims companies use on average and how strongly official complaints are increasing.

This data clearly shows that the majority of green promises do not stand up to critical scrutiny. The confusion among consumers is being deliberately exploited here.

The emphasis on irrelevant truths

A particularly ingenious method is to emphasize a feature that is true but completely irrelevant or even required by law. This tactic gives the impression of being particularly environmentally friendly, although the company is merely complying with the law or promoting a matter of course.

• The best example: a hairspray is advertised with the slogan “CFC-free”. That sounds progressive, doesn’t it? But the use of CFCs (chlorofluorocarbons) in spray cans has been banned in the EU since the 1990s. So the company is boasting about something that is mandatory anyway.

Such maneuvers deliberately distract from the really important environmental aspects, such as the recyclability of the packaging or the problematic ingredients of the product itself.

Hidden compromises and the lesser of two evils

Here, a single positive characteristic of a product is emphasized while other, far greater negative aspects are simply concealed. A classic case of “one hand washes the other dirty”.

• A typical case: a T-shirt is marketed as “made from organic cotton”. This is basically a good thing. But if this organic cotton is grown in an arid region using massive amounts of water and then dyed in a factory that discharges its toxic wastewater untreated into the nearest river, the overall footprint is catastrophic.

Focusing on a single, isolated aspect obscures the big picture. True sustainability always considers the entire life cycle of a product. For a deeper understanding of how companies should consider environmental, social and governance aspects holistically, see our guide to ESG criteria for companies.

Invented seals and false labels

What looks real doesn’t necessarily have to be real. Some companies even go so far as to invent their own “eco-labels”. These logos often look deceptively official – with green leaves, globes or other nature symbols – but have no independent testing or transparent criteria behind them.

Their sole purpose is to inspire confidence and give the product a credible appearance. A genuine seal, on the other hand, is always awarded by an independent, well-known organization and is based on transparent, publicly visible criteria.

If you are not familiar with a seal, a quick search on the Internet is the best way to check its legitimacy. So always be suspicious of logos where the sender is unclear.

Greenwashing in practice: examples that everyone should know about

Theory is one thing, reality is another. Only when you look at specific cases from the corporate world does it become clear how cleverly and sometimes brazenly greenwashing is practiced. So let’s take a look at a few well-known examples and analyze the tactics behind them.

It quickly becomes clear that greenwashing is not an oversight on the part of small, insignificant companies. It is often a targeted strategy developed on the marketing floors of some of the world’s largest corporations. The patterns are repeated across all sectors – from fashion to energy to food.

The illusion of sustainable fashion

The fashion industry is a classic example, known for its rapid consumption of resources and collections. Some time ago, a famous fast fashion giant advertised a so-called “Conscious Collection” as if it were the green revolution in the closet. The items in this line were actually made partly from recycled or organic materials.

So what’s the catch? This “conscious” collection only made up a tiny percentage of the entire range. Whilst the company was busy trying to project a green image to the public, the actual business model continued unchanged: the mass production of disposable fashion at low prices. This is the tactic of hidden compromise in its purest form. A small, positive aspect is blown up to distract from the harmful overall concept. A greenwashing company like this does nothing to change the core problem, but merely puts up a green façade.

The green advertising façade of the energy giants

The big energy companies, whose business is based on fossil fuels, are also masters of greenwashing. One well-known oil and gas company invested millions in an advertising campaign that exclusively featured its renewable energy projects. It showed clean wind turbines and sunny solar parks, giving the impression that the company was a true pioneer of the energy transition.

However, a glance at the annual reports paints a very different picture. While a fortune flowed into green marketing, over 90 % of the total budget continued to be spent on oil and gas production.

Here we see a combination of irrelevance and vague claims. The “green” activity is almost meaningless compared to the actual business, but is used to put the entire company in a better light.

False promises on supermarket shelves

Even when buying everyday items, a critical eye is required. A well-known food brand advertised its water bottles as particularly environmentally friendly because they contained 30% less plastic than the previous model. To match this, the bottle was designed in a lush green to perfect the eco-friendly look.

What was concealed: The thinner material made the bottles much more unstable, which led to more transport damage and therefore more waste. In addition, the lid of the new bottle was not recyclable – a detail that again worsened the ecological balance. This example shows perfectly how a single, seemingly good fact is used to distract from other, negative aspects. It is precisely cases like this that undermine trust in the promises of greenwashing companies.

These examples make it clear how important it is not to take everything at face value and to look behind the shiny advertising promises.

Your personal checklist against greenwashing

Now that we’ve looked at the tricks used by greenwashing companies and some real examples, it’s time to get practical. Here are the tools for your everyday life – a kind of mental checklist. Go through these points in your head the next time you go shopping or evaluate a brand, and you’ll be able to spot empty promises much more quickly.

Never underestimate your power as a consumer. Every conscious purchase decision sends a clear signal to the market. It is remarkable how sensitively customers react to such deceptive maneuvers. A recent survey shows that over 50% of German consumers would turn their backs on a brand if they had the impression that it was greenwashing. And because purchasing decisions are often made in a fraction of a second, it is all the more important to have a trained eye. You can find out more about the background to these customer reactions to greenwashing in the linked study.

Asking the right questions: How to look behind the facade

To make truly informed decisions, you need to ask the right questions. Don’t just accept advertising promises, get to the bottom of them. Here are the most important points you should pay attention to:

• Are the statements concrete? Be suspicious of vague terms such as “environmentally friendly” or “close to nature”. A company that means business backs up its claims with facts and figures. Instead of a vague “resource-conserving”, it should say: “We have reduced our water consumption in production by 25% compared to the previous year.”

• Are there recognized seals? Not every green logo on the packaging is a genuine seal. Look out for certificates from independent, well-known organizations. A trustworthy seal always has transparent criteria that everyone can see.

• Is transparency practiced? Does the company only talk about its successes or does it also talk openly about challenges and setbacks? True sustainability is a journey, not a finished destination. Companies that shed light on their entire supply chain and also report on difficulties are generally more credible.

Recognize trustworthy seals and avoid fraudulent labels

The world of eco-labels can be a real jungle. There are hundreds, and many of them are pure fantasy products from companies trying to put on a green face. Real labels are your compass in this confusion.

You can recognize a credible seal by the fact that it is awarded by an independent third party and is based on strict, scientifically sound criteria. Regular checks are also carried out to verify compliance.

Here are some of the best-known and most reliable seals in the German-speaking world to give you a good orientation:

Table of reliable sustainability seals

Seal	Area	What it means
Blue Angel	Products & Services	The oldest eco-label in the world, supported by the state. It is awarded to products that meet high standards in terms of environmental, health and usage properties.
EU organic seal	Foodstuffs	Guarantees that agricultural products have been produced in accordance with the strict EU regulations for organic farming.
Fairtrade	Social standards	Focuses on fair trading conditions, fair wages and decent working conditions for producers in developing countries.
Naturland	Food & cosmetics	Often goes beyond the EU organic standards and also integrates strict social guidelines.

Be skeptical if you have never seen a seal before, especially if it looks like it comes directly from the manufacturer. A quick online search for the name of the seal plus the word “criteria” or “independent” will usually quickly shed light on the matter.

If you take these points to heart, you will sharpen your eye for the details that distinguish real sustainability from a mere façade. It’s not just about looking at the green highlights, but also recognizing the areas that a greenwashing company prefers to keep quiet about. A good example of this is the question of how transparently a company prepares its carbon footprint and what concrete measures follow from this.

Frequently asked questions about greenwashing

When talking about sustainability and corporate responsibility, certain questions come up again and again. To clear up any remaining uncertainties and provide you with solid answers, we have summarized the most important points about greenwashing for you here.

Is greenwashing actually illegal in Germany?

Yes, greenwashing can certainly have legal consequences. It falls under the Unfair Competition Act (UWG) and is classified as misleading advertising. This means that if a company makes demonstrably false, unclear or simply unproven statements about its environmental friendliness in order to gain an advantage, competitors or consumer protection associations can take legal action.

The catch is that the burden of proof often lies with the plaintiff. It must be proven that a statement was not only misleading, but also influenced the customer’s purchasing decision. This sometimes makes prosecution complicated in practice, but by no means impossible. However, the EU’s new Green Claims Directive will significantly increase the pressure on greenwashing companies, as it creates clear and binding rules for environmental advertising.

How can I recognize a truly sustainable company?

A truly sustainable company can be identified by two things in particular: Transparency and tangible evidence. Instead of hiding behind vague advertising phrases, these companies provide concrete evidence of their efforts.

Just look out for these features:

• Detailed reports: True sustainability pioneers publish comprehensive reports that not only celebrate successes, but also speak openly about challenges and measurable goals for the future.
• Recognized seals: Trustworthy certificates from independent, well-known organizations are a good sign. These include, for example, the Blue Angel, Fairtrade or the EU organic seal.
• Measurable goals: A credible company does not simply say “We want to become more environmentally friendly”. It says: “We will reduce our CO? emissions by 40% by 2030 compared to the base year 2020.”

True sustainability does not shy away from the public eye. Companies that speak openly about their entire supply chain, their production methods and even about setbacks are generally the more honest players.

What can I do if I suspect greenwashing?

If you have the feeling that a company is greenwashing, you are by no means powerless. You can take action and contribute to more honesty on the market. One very effective way is to report your suspicions to the consumer advice center or the competition authority. These organizations have the expertise and resources to investigate such cases professionally and, if necessary, take legal action.

Don’t underestimate the power of public pressure either. Ask the company directly – via social media or by email – and ask for concrete proof of the full-bodied environmental promises. A critical question is often enough for a company to rethink its communication.

Are products with the label “climate neutral” automatically a good choice?

Unfortunately, not always. The term “climate neutral” is not protected by law and is often used misleadingly. It often simply means that a company offsets its CO? emissions by buying cheap certificates instead of actually reducing them. In a sense, companies are buying their way out of their own responsibility without tackling the actual problem.

So take a closer look. A credible path to climate neutrality always follows this sequence: avoid, reduce and only then offset. Check whether the company is doing everything it can to reduce emissions first. Simply buying certificates without making fundamental changes in your own company is often just a modern form of greenwashing.

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