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Greenwashing presents a serious obstacle to combating climate change as it undermines genuine efforts to

create a more sustainable future. In a world where even a slight increase in temperature can have devastating effects on our resources, the pervasiveness of greenwashing is alarming. The United Nations defines the term as “a significant obstacle to tackling climate change. By misleading the public to believe that a company or other entity is doing more to protect the environment than it is, greenwashing promotes false solutions to the climate crisis that distract from and delay concrete and credible action” [1]. In other words, while companies mask harmful practices by seeming environmentally conscious, they ultimately hinder real progress. This not only deceives well-intentioned consumers but also puts truly sustainable companies at a disadvantage. 

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[1]  United Nations: Climate Action, Greenwashing – the deceptive tactics behind environmental claims, 2024,  https://www.un.org/en/climatechange/science/climate-issues/greenwashing

 

A Notable Greenwashing Incident 

This deception has played out in high-profile cases that reveal the real-world consequences of greenwashing.

According to an article by the Natural Resources Defense Council, “In 2009, Volkswagen launched a wide-reaching marketing campaign to promote its ‘clean diesel’ cars…the automaker touted a drastic reduction in the tailpipe emissions of its new VW and Audi models. But a few years later, the U.S. Environmental Protection Agency discovered that Volkswagen had installed software allowing it to cheat emissions tests for 11 million of its vehicles” [2]. This incident is just one striking example of the harmful impacts of greenwashing. By distorting the truth, this practice erodes public trust and undermines the efforts of consumers who are working to live more sustainably.

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[2]  Courtney Lindwall, What is Greenwashing?, NRDC, February 9, 2023,  https://www.nrdc.org/stories/what-greenwashing?gad_source=1&gclid=Cj0KCQjwkN--BhDkARIsAD_mnIpvfVvkbGAar8P4gW_V_o2OgHB6iBEoEGz9Pt_ASBxY2nLCZEsfMdYaAp45EALw_wcB

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Consequences: Deceptive Claims and Harming Genuine Efforts

​As environmental concerns rise, some consumers are eager to support companies that demonstrate environment

conscious practices. However, vague labels like “eco-friendly” or “green” can mislead consumers, as many companies attempt to present themselves as sustainable without implementing real, measurable steps to reduce their environmental footprint. The United Nations states that “through deceptive marketing and false claims of sustainability, greenwashing misleads consumers, hampering the trust, ambition, and action needed to bring about global change and secure a sustainable planet” (United Nations, 2024). As a result, well-intentioned individuals may unknowingly support companies that contribute to environmental harm, rather than mitigate it. Over time this can weaken the collective effort being made towards meaningful environmental progress.

This erosion of trust has been made clearer by recent regulatory actions, such as the intervention in a misleading

ad campaign by Virgin Atlantic. According to an article by Politico, “The U.K. Advertising Standards Authority banned a radio ad promoting the use of sustainable aviation fuel by airline company Virgin Atlantic over greenwashing concerns. The ad, which was heard on Nov. 24, 2023, centered around the first transatlantic flight powered by 100 percent sustainable aviation fuel. The U.K. watchdog said it was ‘misleading’ because it didn’t inform listeners about the fuel’s true environmental impact” [4]. By presenting itself as more sustainable, the airline may have influenced consumer decisions. The potential influence of this advertisement on consumers striving for sustainability demonstrates the significant risks of companies making deceptive claims about their environmental impact.

Another harmful impact of greenwashing is that it can hinder efforts being made by other corporations and

activists who are truly working towards creating a more sustainable planet. According to a Forbes article, “Fordecades, greenwashing frustrated environmental activists who wanted actual change by companies. However, as environmental, social, and governance investing grew, so did the legal pitfalls of greenwashing” [5]. This highlights how greenwashing can also obstruct genuine progress by creating confusion and false comparisons. When companies exaggerate their sustainability efforts, they undermine the credibility of other corporations and activists who are committed to real environmental change.

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[3] United Nations, supra 1 

[4] Louise Gulliot, UK watchdog bans sustainable aviation fuel ad over greenwashing concerns, Politico, August 7, 2024, https://www.eenews.net/articles/uk-watchdog-bans-sustainable-aviation-fuel-ad-over-greenwashing-concerns/

[5]  Jon McGowan, EU greenwashing law is warning to US companies to be diligent in environmental claims, Forbes, January 23, 2024,  https://www.forbes.com/sites/jonmcgowan/2024/01/23/eu-greenwashing-law-is-warning-to-us-companies-to-be-diligent-in-environmental-claims/

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Solutions: Regulatory Scrutiny and Consumer Protection

 In response to these challenges, global organizations have begun outlining clear strategies to promote

transparency and hold companies accountable for their environmental claims. According to the World Economic Forum, “A net zero pledge should be made publicly by the leadership of the corporation and include targets for 2025, 2030 and 2035. It should demonstrate that it will help achieve a 50% cut in global emissions by 2030 and will sustain net zero after 2050” [6]. The United Nations set these environmental targets for companies to quantitatively address their environmental impact. By taking this pledge, companies can be held more accountable. The article continues by adding that “the report also calls for the annual publication of each organization’s greenhouse gas emissions alongside baseline data so people can see how well they are doing compared to other entities” [6]. Companies would no longer be able to hide behind vague language or misleading marketing, as their emissions data would be clearly reported and publicly accessible. Transparency not only empowers consumers to make informed choices but also creates pressure on companies to genuinely reduce their environmental impact.

In addition to encouraging greater transparency through a net zero pledge, governments can also pursue legal

action to ensure corporate accountability should corporations publish falsified reports. The Forbes article wrote that “There is also a legal argument to be made that privately held companies that voluntarily publish ESG or sustainability reports are doing so as a marketing tool and, therefore, those reports fall under consumer protection regulations” [7]. In other words, if companies continue to mislead consumers about their environmental initiatives with false reports, then states may be able to take legal action under consumer protection laws. These laws are designed to safeguard consumers from deceptive or harmful business practices. 

While being more transparent can potentially deter consumers and investors, it can also benefit corporations.

There are several examples of companies being successful while presenting accurate emissions data, showing that these practices do not have to be a significant burden. In an article by The Sustainable Agency on the apparel company Patagonia, it stated, “A case in point is when they ran an ad for Black Friday telling buyers, “Don’t Buy This Jacket”, with the message of asking people to only buy what they need. In the ad, they disclosed the environmental cost of producing the jacket” [8]. By openly acknowledging the environmental cost of its products, Patagonia built trust with consumers who value honesty and accountability. This approach reinforced the company’s brand identity and showed that sustainable business practices and profitability can go hand in hand.​

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[6]  Douglas Broom, 5 ways to tackle greenwashing, according to UN experts, World Economic Forum, November 16, 2022, https://www.weforum.org/stories/2022/11/greenwashing-stop-report-un-experts/

[7]  Jon McGowan, EU greenwashing law is warning to US companies to be diligent in

environmental claims, Forbes, January 23, 2024,  https://www.forbes.com/sites/jonmcgowan/2024/01/23/eu-greenwashing-law-is-warning-to-us-companies-to-be-diligent-in-environmental-claims/

[8]  Roma Dhanani, Here are six brands that are NOT greenwashing, The Sustainable Agency, March 31, 2022, https://thesustainableagency.com/blog/brands-that-dont-greenwash/

 

Conclusion

Greenwashing poses a serious threat to climate action by deceiving consumers, damaging public trust, and

harming genuinely sustainable companies. High-profile cases like Volkswagen’s emissions fraud and misleading campaigns like Virgin Atlantic’s fuel ad show how greenwashing misleads the public and influences decision-making. Vague environmental labels further confuse consumers, while false claims hurt the credibility of companies and activists working for real change. As regulatory pressures grow, transparency is emerging as a solution. Initiatives like the UN’s net-zero pledge, state-backed consumer protection laws, and honest branding strategies, such as Patagonia’s, demonstrate the significance of accountability and sustainability. To truly advance environmental progress, companies must be transparent, set measurable goals, and commit to credible action.

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