Is "eco-friendly" always the best choice? The real story behind greenwashing

Being eco-friendly is now a sign of trust, and it's a good idea to put it on the packaging and in ads. But this might not always be true.

The European Commission's "Environmental Claims Consumer Market Study 2020" found that 53% of environmental claims in the EU are either false or not true, and 40% of these claims don't have any proof to back them up.

The greenwashing is worse than you think

That’s not a handful of bad guys. This is a typical problem. Up to 40 per cent of environmental claims made online were found to be misleading (ICPEN Global Review of Environmental Claims (2021)). Another report by the European Commission on Screening of Websites for “Greenwashing” (2021) found that 42 per cent of environmental claims were either exaggerated or simply untrue.

Corporate risk data adds another layer to the picture. The RepRisk ESG Risk Platform Report (2023) says that about 25% of corporate climate risks come from greenwashing, and the number of cases has grown a lot in the last few years. To put it another way, greenwashing happens a lot. Greenwashing is a big part of marketing sustainability.

Why "eco-friendly" is not clear

This is because of the words used in this case. Legally, words like "green," "eco-friendly," "natural," or "sustainable" can mean different things, which gives businesses room to change what they mean. The UNEP and UN Global Compact report "Greenwashing," which came out in 2023, says that greenwashing is "misleading communications that falsely convey an implication of environmental responsibility."

Even the certification programs are murky. There are hundreds of ecological labels around the world, some more reliable than others, according to the OECD publication "Environmental Labelling and Information Schemes".

Why consumers are beginning to question it

The more you know the more you doubt. Also, the European Commission’s 2020 study notes that consumers find it increasingly difficult to distinguish between genuine and misleading claims. Meanwhile, research published in the Journal of Marketing Research (studies on consumer perception of greenwashing) shows that exposure to misleading sustainability claims reduces long-term brand trust. In simple terms, people are beginning to look twice, and not always in a good way.

The real effect goes beyond advertising.

It's not just a problem with branding when companies greenwash. It changes how markets work. The ScienceDirect study on greenwashing and market distortion (2022-2024 trends) shows that unmet expectations could lead consumers to invest in non-sustainable products instead of sustainable ones, which would slow down progress in protecting the environment.

Also, it leads to unfair competition, where companies that care about sustainability compete with others that only care about how things look.

So, is it always better to be "eco-friendly"?

Not always. Some products really do have less of an impact on the environment. A lot of them just look like they do. And just looking at the label isn't enough to tell the difference. It's helpful to look for details. Convincing data, verifiable certification by third parties, and open disclosure of sources and manufacturing processes are much more trustworthy than unsubstantiated claims.

"Eco-friendly" doesn't prove anything. It's a claim. And when more than half of these claims might not be true, it's important to be aware. It's not just about what you buy that makes better choices today. It’s about how carefully you question what you’re told.

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