We have often talked about how Communicate properly the issue of sustainability through operations of Green marketing is a delicate challenge, and doing it the wrong way can do more harm than good.
Even actions taken to improve sustainability risk losing credibility and effectiveness if they lack strategy and concrete tools. In this case, then, you risk falling into Greenwishing, or the risk of setting ambitious goals without real means to achieve them.
On the other hand, there is the opposite danger, the Greenhushing, or communicative silence. In this case, initiatives aimed at sustainability are implemented, but not communicated, often for fear of being accused of Greenwashing.
In this article we focus precisely on the latter concept: the Greenwashing, a practice often mentioned, but not always understood.
What does greenwashing really mean? What are the risks for companies that practice it? And most importantly, how to avoid it? Let's find out together in this article.
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What does the term greenwashing mean?
The Greenwashing It is a practice adopted by companies, bodies or institutions that highlight the positive aspects of some sustainable initiatives, intentionally failing to communicate the negative impact of other activities, often much more harmful.
The goal is to create the illusion of a commitment to sustainability, diverting attention from critical issues.
The term derives from the combination of 'green' and 'washing', recalling the idea of a 'hand of green' given to improve the corporate image and confer a perception of environmental credibility, often deceitful.
The use of the term became common starting in the 90s, a period in which consumers' growing interest in environmental issues began to influence their purchasing decisions. This increased attention to environmental impact has prompted many companies to try to appear more sustainable, not always in a transparent way.
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The risks of greenwashing
The main risk associated with greenwashing It is the loss of trust: when consumers discover that they have been deceived by false or misleading environmental statements, rebuilding a damaged reputation becomes Extremely difficult.
When consumers discover that they have been deceived by false or misleading environmental statements, rebuilding a damaged reputation becomes Extremely difficult.
Often, the damage caused by a loss of credibility far outweighs the immediate benefit the company hopes to obtain. The loss of confidence, however, is not limited to consumers: even investors, both public and private, are increasingly sensitive to sustainability issues.
The growing attention to consumer needs and demands directly influences investor decisions. If the public loses interest or trust in a company due to greenwashing practices, investors are also very likely to abandon their support.
And the risks associated with greenwashing are not limited to losses of trust and reputation: as confirmed by the latest directives (which we will talk about later),European Union is increasingly active to combat the phenomenon of greenwashing. The European Parliament itself states that companies that break the rules may be subject to sanctions, such as the temporary exclusion from public tenders, the loss of its revenues and fines equal to at least 4% of the annual turnover.
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What are the advantages of communicating sustainability correctly?
Communicating sustainability it's not a foregone step. The growing interest of consumers, increasingly attentive and ready to combat phenomena of Greenwashing, together with the increase in European Union regulations, may discourage companies from going through this process.
However, promoting an effective system for communicating results in a sustainable environment leads to concrete results. To take this path, it is essential to make use of an experienced communication team, able to enhance business initiatives and avoid the greenwashing trap.
What are the results of correct and effective communication?
First, it strengthens the customer loyalty, who feel more involved in buying products or services offered by companies truly committed to sustainability. Second, it improves the business reputation, making the company more attractive to young talents who are sensitive to these issues and willing to promote positive change.
The combination of these aspects can finally lead to an additional significant benefit:attraction of investments, both public and private, that allow for more solid and lasting business growth.
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What to do to avoid greenwashing? The 7 fundamental principles
We have clarified what is meant by Greenwashing and how crucial it is to communicate sustainability in a correct and transparent way. But how can we avoid falling into this harmful practice?
Un The cardinal principle guides sustainability professionals and can be summarized in the following sentence:
“Expressions, terms and statements related to environmental performance must be based on a clear, transparent, scientifically based and documented assessment methodology, so that those to whom they are addressed or can potentially be addressed can be assured of the validity of the assertions.”
From this principle they derive 7 basic rules that every communication on sustainability must respect to be credible and correct. These statements must be:
- accurate and not misleading;
- verifiable and verifiable;
- relevant and used in an appropriate context;
- presented clearly;
- specifications with respect to the environmental aspect investigated;
- done considering the life cycle of the product or organization;
- supported by explanatory statements.
Following these rules not only avoids the risk of greenwashing, but also builds trust and credibility, fundamental elements for an effective sustainability strategy.
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Directive 2024/825/EU: the European directive against greenwashing
The European Union has always been very attentive to environmental issues, and in recent years it has proved to be particularly active in producing regulations in this area.
Among the main initiatives, the EU taxonomy, a classification system that establishes whether an economic activity can be considered environmentally sustainable.
It is accompanied by the Sustainable Finance Disclosure Regulation (SFDR), which obliges companies to financial sector to provide detailed information on the sustainability of their products, and the directive Corporate Sustainability Reporting Directive (CSRD), which extends the obligation to draft the sustainability report to a larger number of companies.
The last piece of this regulatory strategy is the Directive 2024/825/EU, known as”Empowering Consumers for the Green Transition”.
The directive, published on March 6, 2024 and applicable from September 27, 2026, aims to consolidate and strengthen existing regulations, defining with greater clarity the terminology used by companies for their environmental statements.
Among the main measures, the incentive to use stands out claims supported by certifications official, such as the European Ecolabel, which attests to a reduced environmental impact, or clear and specific statements on a single environmental characteristic.
In particular, the directive also establishes some specific prohibitions listed in Annex I, which clearly indicates that it is always prohibited to:
- display a sustainability mark that is not based on a certification system or is not established by public authorities;
- formulate a generic environmental statement for which the economic operator is unable to demonstrate the recognized excellence of the environmental performance relevant to the assertion;
- formulate an environmental statement concerning the product as a whole or the activity of the economic operator as a whole when it concerns only a certain aspect of the product or a specific element of the economic operator's activity;
- assert, based on the compensation of greenhouse gas emissions, that a product has a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions;
- present requirements imposed by law on the Union market for all products belonging to a given category as if they were a distinctive feature of the economic operator's offer.
