Greenwashing, also known as “green sheen,” is a term derived from the English words “green” (green in the sense of ecological) and “whitewashing” (a manipulative technique of concealing unfavorable facts in order to improve public opinion). Greenwashing refers to a marketing strategy that creates the impression that a company’s products, goals, and policies are environmentally friendly. Companies often use terms like “sustainable” or “green” to create a sense of concern for the planet, while their actual environmental benefits are minimal. These claims may be partially true, but they often fail to take into account the overall environmental impact.

Critics argue that the growing trend of greenwashing, along with a lack of regulation, contributes to consumer skepticism about green claims and weakens their ability to promote greener production and business processes. In recent years, this phenomenon has spread rapidly, as companies try to meet the demand for environmentally friendly products and services. However, new laws and regulations seek to discourage companies from practicing greenwashing and prevent misleading consumers.

⚠️ Examples of Greenwashing

• McDonald's: In 2009, McDonald's changed the color of its European logo to yellow-green to emphasize its responsibility to protect natural resources. However, in 2021, it was accused of environmentally misleading advertising when it announced its intention to achieve zero emissions by 2050.
• Starbucks: In 2018, Starbucks introduced a lid with a built-in straw in response to calls to ban plastic straws. However, this lid contained even more plastic than the original straw-lid combination.
• Apple: Since the release of the iPhone 12 in 2020, Apple has stopped shipping headphones and chargers, citing e-waste concerns. However, the main source of Apple's e-waste remains the short planned lifespan and unrepairability of its devices.
• H&M: Swedish fast fashion brand H&M launched its “conscious collection” in 2010, without specific information about sustainable materials and ethical treatment of employees. During the pandemic, the company laid off more than 1,000 workers due to canceled orders.
• Zara: Spanish giant Zara has launched a “Join Life” campaign to improve its sustainability image. It plans to switch to 100% renewable energy by 2030 and use only sustainable and recyclable materials, with goals including offsetting all emissions by 2040.
• Volkswagen: In 2015, the Environmental Protection Agency (EPA) revealed that many VW vehicles had “defeat devices” that distorted emissions tests. In reality, these engines were emitting up to 40 times more nitrogen oxide emissions than allowed.
• Many other automakers, including BMW, Chevrolet, Ford and Mercedes-Benz, have also faced accusations of manipulating environmental data.

🧠 Impact on consumers

Studies show that consumers prefer products that are truly environmentally friendly more than those that only exhibit greenwashing. Other research suggests that many consumers don't even notice greenwashing, especially if they trust the company. When consumers perceive an environmental ad as credible, they have a more positive attitude toward the brand, even if the ad contains greenwashing.

A product may be labeled as sustainable by an external organization or by the company itself, which can be misleading unless all environmental impacts are disclosed. Research shows that consumers often perceive green advertising as greenwashing when they attribute the green message to the company's own interests.

Effective green marketing, branding and advertising are only successful when they match the firm's true environmental commitments. This means that the visibility of these commitments is crucial for a positive evaluation by consumers. Greenwashing can lead to indifference or negative consumer attitudes towards green marketing.

⚖️ Greenwashing and European legislation

In the context of European legislation, the issue of greenwashing and the basic principles of consumer protection regarding environmental claims are primarily addressed through the Unfair Commercial Practices Directive (UCPD).

📜 Directive 2005/29/EC on unfair commercial practices

This directive prohibits unfair business practices, which may include misleading environmental claims or greenwashing. The directive aims to protect consumers from various forms of deceptive marketing and deals with the ways in which products and services are presented.

Main points of Directive 2005/29/EC:

• Prohibits deceptive acts and omissions: Including providing false information or concealing material facts.
• Protecting consumers from misleading advertising: Including environmental claims that mislead consumers about the true environmental properties of a product.
• Establishing criteria for deciding on unfair practices: Considering whether the practices are likely to have an impact on the economic behavior of consumers.

🏛️ Other relevant regulations and guidelines

• Directive 2010/30/EU on energy efficiency labelling: Which requires accurate and reliable information on the consumption of energy and other resources.
• Regulation (EU) 2018/841 of the European Parliament and of the Council on the inclusion of greenhouse gas emissions and removals from land use, land-use change and forestry: While focused on greenhouse gas emissions and removals, it also promotes transparency and accountability in environmental claims.

The European Union also regularly issues guidelines to improve the transparency and credibility of environmental claims, thereby strengthening consumer protection against greenwashing.

• Greenwashing is the misleading practice of presenting products or services as more environmentally friendly than they actually are in order to achieve commercial profit.
• Green Claims are true and substantiated statements about the positive environmental properties of a product or practice. Spring

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