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Greenwashing is the common term for false sustainability claims or marketing by a company.

What do I need to know?

Greenwashing means that a company claims to be greener and more sustainable than is actually the case.

As sustainability, climate and 'green business' become an increasingly present and popular topic, and consumers increasingly choose sustainable products and services, there is a growing desire for green marketing and branding.

This means that many companies see a significant business advantage in appearing greener and more sustainable than their competitors. As a result, companies are investing in green transformation and marketing themselves as green based on those investments. Unfortunately, there are very few standards that make green branding transparent to customers, and companies rarely have adequate data to back up their claims. Recently, there have also been many cases of "fraud" or misleading/exaggerated claims about green brands because companies are making greater profits from being green and there are no consequences.

Why is it important?

More and more companies are receiving warnings and penalties for green marketing of products or the company as a whole that they cannot substantiate, are exaggerated, or are directly false.

Regulations are being put in place and enforced at the national and EU level, which means that if a company does not have the right data to back up its green claims, it can get expensive.

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