21.01.2025
What is greenwashing and how to recognize it?
Key information:
- Greenwashing is the practice of misrepresenting the environmental performance of a company's products or operations.
- Environmental manipulation can take many forms, such as false certifications, vague declarations or one-off marketing campaigns.
- Recognizing greenwashing requires analyzing the details of declarations, information sources and green certifications.
- Companies that use greenwashing risk loss of consumer confidence, legal sanctions and image crises.
- Consumers and businesses should support transparent environmental activities with reliable ESG tools and reports.
Details below!
In recent years, environmentalism has become one of the key topics in business and marketing. Increased consumer awareness has caused companies to increasingly promote their products as environmentally friendly. Unfortunately, not all declarations are in line with reality. Greenwashing, or greenwashing, is the practice of misleading through false or exaggerated environmental claims. This article aims to explain what greenwashing is, how to recognize it, and the consequences for companies and consumers.
Before you explore the topic of greenwashing, take a look at our offer on creation of sustainable development strategies. We support companies in successfully aligning operations with European Union regulatory requirements, minimizing costs, maximizing profits and building long-term business value.
What is greenwashing?
Greenwashing is the marketing strategy of portraying a company's products, services or activities as greener than they really are. This can include false information, visual manipulation and even false green certifications.
Why is this topic important in today's world?
Amid the growing challenges of the climate crisis and environmental degradation, Sustainable development has become one of the priorities for global action. Both governments and international organizations are taking increasingly decisive steps to reduce the negative impact of human activity on the planet. In this context, the role of companies is not to be overlooked, and their real commitment to responsible business practices can make a significant contribution to environmental protection.
Unfortunately, as consumer awareness of environmental issues increases, some companies are attempting to take advantage of this trend with dishonest greenwashing. False declarations of green efforts can mislead customers, building an undeserved reputation for the company, while slowing down real change. Such practices not only damage consumer confidence, but also impede progress toward global climate goals.

Types of greenwashing
Hiding the truth - Some companies promote one environmental aspect of their product while ignoring other, more damaging aspects. For example, recycled packaging may hide the fact that the production of the product itself generates significant CO2 emissions.
Vague and vague declarations -. Terms such as "environmentally friendly" or "green" are often used without detailed explanation. Lacking concrete evidence, consumers are misled.
Fake certifications and eco-labels - Some companies create their own certifications that look official. It is difficult for consumers to distinguish between recognized standards, such as ISO, and contrived designations.
One-time actions promoted as long-term changes -. Tree planting campaigns or one-time donations are often presented as evidence of a long-term commitment to sustainability, even though they have little impact on the company's overall operations.
Misleading visuals and marketing slogans -. Photos of green landscapes, symbols of nature, and slogans like "We take care of the planet" can mask a real lack of environmental action.

How do you distinguish between greenwashing and actual green activities?
Distinguishing greenwashing from genuine environmental commitment requires careful analysis of the information provided by companies. Here are the key aspects to look out for:
- Detailed declarations instead of generalities
Reliable companies provide specific data, such as:
- CO2 emission reduction levels,
- amount of material processed,
- Number of environmental projects implemented.
Avoid generic slogans such as "environmentally friendly" or "green product," which without details can be questionable.
- ESG reports as evidence of action
Reliable companies publish detailed ESG (Environmental, Social, Governance) reports. These documents include figures, action plans and audit results. Their availability to consumers and stakeholders is a good indicator of reliability.
- Organic certificates
Certificates such as:
- ISO 14001 (environmental management),
- Fair Trade (Fair Trade),
- FSC (responsible forest management),
Are a sign of true commitment. Caution should be exercised with regard to certifications that do not have a reference to known certification organizations.
- Comprehensiveness of activities
Analyze whether the company:
- takes action in many areas of sustainable development,
- whether it focuses only on one aspect (e.g., green packaging) while ignoring other key issues, such as greenhouse gas emissions.
- Long-term commitment
Genuine environmental activities are:
- continuous investment,
- A strategy with measurable goals,
- Actions geared toward long-term results.
In contrast, one-off marketing campaigns with a short impact can be an example of greenwashing.
If you are interested in the topic of sustainable development, we invite you to learn more about ESG regulations and standards, find out what advantage they can give you in the current business environment.
Key questions to ask before buying "organic" products
Before buying products advertised as environmentally friendly, it is worth carefully analyzing whether they actually meet the claimed standards. Many companies capitalize on the sustainability fad by offering products that in reality have little to do with environmental protection. To avoid the pitfalls of greenwashing, it's worth asking yourself a few key questions:
"Is the product really green, or is it just its packaging?" - Some companies focus solely on the eco-friendly appearance of the packaging, ignoring the harmful effects of the product itself.
"Does the company publish detailed sustainability reports?" - The lack of transparent data may suggest that the company is using marketing manipulation.
"What are the environmental costs over the life cycle of a product?" - It is important to consider the environmental impact at every stage from production to transportation to disposal.
"Does the product have recognized organic certification?" - Certifications such as ISO 14001 and Fair Trade guarantee adherence to international standards.
"Does the company work comprehensively to protect the environment?" - One-time actions or marketing campaigns are not enough to consider a company environmentally responsible.
Answering these questions will allow you to consciously choose truly environmentally friendly products and support companies committed to sustainability.
EU regulations on sustainable development
The European Union, as a leader in sustainability efforts, has introduced a series of regulations aimed at increasing the transparency of companies' operations. Sustainability Reporting Directive (CSRD) obliges companies to provide detailed information on their environmental, social and corporate governance (ESG) impacts. These reports must comply with recognized standards, making manipulation and false statements difficult.
Additionally, EU regulations on green declarations clarify how companies can communicate their environmental performance. They require measurable data and avoid vague claims such as "environmentally friendly" without adequate justification. Examples include. EU Taxonomy Regulation, which classifies investments and activities as "green" only if they meet certain environmental criteria.
The fight against greenwashing requires commitment on many levels: from legislative action to NGO initiatives. Regulations and independent certification systems play a key role in promoting transparency and supporting authentic green activities.
Activities of local and international environmental organizations
NGOs such as Greenpeace, WWF and ClientEarth play an important role in exposing cases of greenwashing. Monitor companies' activities, conduct independent analysis and publish reports, which raise consumer awareness. For example, Greenpeace campaigns have repeatedly pointed out companies using environmental manipulation, leading to changes in their practices.
Local environmental organizations, operating at the national level, also support the introduction of regulations tailored to the specifics of a particular market. They engage in consumer education, organize workshops and information campaigns, helping to recognize authentic environmental activities.
The role of certification and audit systems
Certification systems, such as ISO 14001, Fair Trade, FSC or EU Ecolabel, are an independent confirmation of companies' commitment to sustainability. These certifications are based on strict criteria that companies must meet to obtain them. The certification process involves detailed audits that verify that a company's actions are in line with its declarations.
Regular environmental audits are an equally important part of building consumer confidence. Independent auditing firms conduct inspections, analyzing the environmental impact of a company's activities. As a result, consumers can be sure that a product or service actually meets environmental standards.

Consequences of greenwashing for companies
Greenwashing carries serious consequences that can negatively affect a company's operations in the short and long term. These consequences range from consumer relations to legal problems and financial losses.
Loss of consumer confidence
Consumer trust is one of the most important assets of any company. When a brand is revealed to be greenwashing, customers may feel cheated, which often leads them to abandon purchases of its products or services.
Studies show that over 60% consumers avoids brands that have been caught misrepresenting environmental issues. This kind of damage is difficult to repair, as consumers are increasingly aware and critical of false claims. It takes years to rebuild trust, and in many cases proves impossible.
Potential legal and financial penalties
In some countries, greenwashing is treated as a violation of consumer protection laws. For example, The European Union is introducing legislation that requires companies to provide evidence to back up their green claims. If these requirements are not met, companies can be fined heavily.
In 2021, the French consumer protection authority fined H&M €35 million for using greenwashing in promoting its "eco-friendly" clothing line. Similar sanctions could also apply to companies operating in the Polish market if they mislead customers through false labeling or declarations.
Image crises and their impact on a company's long-term performance
Greenwashing often leads to image crises, which are widely publicized by the media and NGOs. A negative media campaign can drastically reduce brand value. A case in point is Volkswagen, which in 2015 found itself at the center of an environmental scandal involving the manipulation of emissions results (``Edieselgate''). The company suffered financial losses of $30 billion and its reputation has been severely damaged.
The effects of an image crisis can be far-reaching, including:
- Decline in sales - Consumers are abandoning products from companies that are not reliable in their eyes,
- Loss of investors - Investment funds and business partners avoid working with brands that have problems with their business ethics.
- Recruitment problems - For many employees, especially young ones, ethical issues are an important factor in choosing an employer. Companies that practice greenwashing may find it difficult to attract talent.
Additional financial and operational impacts
In addition to sanctions and image damage, greenwashing can lead to costs associated with the need to change strategy and corrective actions. Companies have to invest in PR campaigns, employee training, and even a complete overhaul of their production processes to meet regulatory requirements and consumer expectations. In many cases, these costs outweigh the benefits of previous handling activities.
Long-term risks
In an era of increasing sustainability, greenwashing is becoming increasingly risky. Regulations such as EU Taxonomy Regulation, and increasing consumer awareness of environmental issues make companies that do not take authentic action increasingly vulnerable to consequences. In the long run, greenwashing can lead to a loss of competitiveness in the market.
In short, greenwashing not only damages a company's reputation, but also involves real financial, legal and operational losses. It is crucial for companies that want to act responsibly to invest in authentic sustainability efforts and avoid false declarations that can prove destructive to their business.
Consumer and business awareness is key to fighting greenwashing
Greenwashing is a serious problem for both consumers and businesses. Recognizing green manipulation requires knowledge and a critical approach. Supporting companies that act ethically and transparently is crucial to the future of our planet. Sustainability is not just a fad, but a responsibility we must take on together.
Check out our offer on creation of sustainable development strategies. We support companies in successfully aligning operations with European Union regulatory requirements, minimizing costs, maximizing profits and building long-term business value.
Kamil Biegaj
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