The trend towards greater transparency and accountability in corporate reporting is growing, driven by both regulatory requirements and increasing stakeholder demand for environmental, social, and governance (ESG) information. Greenwashing, making misleading claims about the environmental benefits of a product or company practice, is becoming more prevalent as pressure mounts on companies to reduce their environmental impact. Notable cases include:

1. Volkswagen’s Emissions Scandal (2015): Volkswagen falsely marketed its diesel vehicles as low-emission and environmentally friendly. But the company cheated emissions tests by installing software in over 11 million vehicles. In fact, these vehicles emitted up to 40 times more nitrogen oxides than allowed by law, leading to significant environmental damage and a massive loss of consumer trust.
2. Nestlé’s Bottled Water Claims (2018): Nestlé advertised its Pure Life bottled water as being sourced from “pure” and “pristine” springs. Investigations later revealed that some of the water came from municipal sources and was essentially filtered tap water. This led to public backlash and accusations of greenwashing.
3. BP’s Beyond Petroleum Campaign (2000s): BP rebranded itself as “Beyond Petroleum”, emphasising its investment in renewable energy. However, renewables were only a small percentage of its total investments – the majority still remaining in fossil fuels. The 2010 Deepwater Horizon oil spill further showcased the disconnect between what BP said they were doing and what they were actually doing, the spill having a profound environmental impact.
4. H&M’s Conscious Collection (2021): H&M promoted its “Conscious Collection” as sustainable fashion. However, a report by the Norwegian Consumer Authority noted a lack of transparency regarding the environmental benefits and how H&M used misleading claims. This resulted in considerable backlash from environmentally conscious consumers.
5. IKEA’s Renewable Energy Claims (2020): IKEA claimed that it produced more renewable energy than it consumed. While the company has made significant investments in renewable energy, these claims were based on selective data. This realisation led to accusations of IKEA exaggerating their environmental efforts.

Yet it’s not only prevalent in big business and greenwashing can be less obvious than major scandals. Here are some examples of more subtle greenwashing tactics:

1. Misleading Labels and Certifications: Using unverified eco-labels that look official but lack independent verification such as displaying a “100% natural” label without meeting any established standards for natural products.
2. Partial Truths: Highlighting a single green attribute while ignoring other environmental impacts, like a company promoting the use of recycled material but failing to address its high carbon footprint.
3. Hidden Trade-offs: Promoting one positive aspect while concealing negative ones. For example, marketing a product as energy-efficient, but production causes environmental harm, such as toxic waste or heavy water usage.
4. Green Imagery: Using nature-related images to give the impression of being environmentally friendly but not actually engaging in sustainable practices.
5. Broad and Vague Claims: Using terms like “eco-friendly,” “green,” or “sustainable” when in fact the product isn’t. For example, labelling a cleaning product as “green” but it contains undisclosed harmful chemicals.
6. Irrelevant Claims: Highlighting an environmental achievement that is insignificant or irrelevant to the product. For example, advertising a non-toxic cleaner as “CFC-free” (chlorofluorocarbons), even though CFCs have been banned in cleaners for decades.
7. Lack of Proof: Making unvalidated or unsubstantiated claims, such as stating a product is “carbon-neutral” but not providing the necessary evidence to explain the claim.
8. Distracting with Minor Positives: Distracting consumers by focusing on a minor eco-friendly aspect to divert attention from the product’s overall negative environmental impact. For instance, promoting a single-use plastic bottle as recyclable while ignoring the broader issues of plastic pollution and waste.
9. Token Environmental Projects: Publicising small-scale environmental projects or donations to green causes as evidence of overall sustainability, even though the company’s main operations are environmentally damaging.
10. Green Sponsorships: Sponsoring eco-friendly events or initiatives to build a green image while continuing unsustainable practices and making no effort to reduce carbon footprints.

While some can deliberately mislead consumers about their ESG efforts and undermining the importance of sustainability, ensuring your company’s sustainability report is genuine and transparent is crucial. Here are key steps to avoid greenwashing:

1. Be Transparent and Specific: Clearly communicate your sustainability goals, actions, and results. Avoid vague language and unsubstantiated claims. Provide specific data and metrics to back up your assertions.
2. Third-Party Verification: Engage independent third parties to audit and verify your sustainability claims. Certifications from recognised environmental organisations add credibility to your report.
3. Consistency: Ensure consistency between your sustainability report and other corporate communications. Discrepancies can lead to suspicion and accusations of greenwashing.
4. Stakeholder Engagement: Involve all stakeholders in your sustainability initiatives. Their feedback can provide valuable insights and enhance the credibility of your efforts.
5. Focus on Material Issues: Prioritise and address the sustainability issues that are most relevant to your business and stakeholders. Demonstrating significant progress in these areas can show a genuine commitment to sustainability.
6. Continuous Improvement: Sustainability is a journey, not a destination. Regularly update your goals and report on progress. Acknowledge challenges and setbacks honestly.

By following these steps, companies can build trust and demonstrate genuine commitment to sustainability, ensuring their integrated reports reflect true environmental responsibility.

Blue Apple has been helping companies produce award-winning integrated and annual reports for 25 years. Chat to us here if you’d like us to help you write, design, publish or workshop your next report.