How to Spot Greenwashing and Take Action

Sustainability has evolved dramatically over the past two decades from a vague ethical concern to a sophisticated framework for managing social and environmental impact through data-driven strategies. Along with this growth, greenwashing—the practice of making misleading or exaggerated claims about a company's sustainability efforts—has also grown in prominence. For those working in sustainability, the rise of greenwashing can feel especially disheartening. Teams work tirelessly to align stakeholders, develop sustainable strategies, and build market trust. Yet, the impact of their work is often obscured, especially when companies with dubious claims seem to get more recognition.

This reality is frustrating for sustainability professionals. How do we know if a company’s sustainability efforts are genuine? If sustainability is at the forefront of corporate agendas, how can we be sure that companies are truly delivering on their promises? With growing pressure from executive leadership to improve Environmental, Social, and Governance (ESG) standings, teams are challenged to prove their progress in a landscape where environmental impact claims can be difficult to substantiate.

What is Greenwashing?

Greenwashing involves presenting an image of environmental or social responsibility without substantiating evidence.  Companies may exaggerate their sustainability achievements or use misleading language that makes their actions appear more impactful than they truly are. This practice manifests in several ways. For instance, vague or misleading claims often involve terms like "eco-friendly," "sustainable," or "green" without providing concrete evidence, allowing much of the interpretation to be subjective due to the lack of strong legal definitions. Another common tactic is selective disclosure, where companies highlight minor environmental initiatives that are easy to implement or promote while omitting more significant, impactful practices, creating a skewed perception of their overall efforts. Additionally, some companies rely on unverified certifications or labels that lack credibility or rigorous standards, misleading consumers and stakeholders into believing that their environmental claims have been externally validated when, in fact, they have not. 

What’s a Sustainability Team to do?

For professionals committed to sustainability, greenwashing presents several critical challenges, including measuring impact, getting recognized for your efforts and delivering real sustainable impact in your company when short-termism is favored.

One of the most challenging parts of working in sustainability is measuring the direct effects of your initiatives. Decarbonization efforts, water conservation projects, or supply chain emissions reductions often take years to show tangible results, and tracking the impact requires significant amounts of data. In the meantime, it’s difficult to showcase progress in a way that competes with the flashier—but often misleading—claims of greenwashing companies.

An additional challenge is seen when companies are celebrated for minimal or misleading environmental achievements. This can be demoralizing for sustainability teams that are working hard on genuine, long-term projects. Public recognition of sustainability efforts is critical—not just for company image but also for securing the support and resources required to scale those efforts. Yet, greenwashing complicates this recognition, making it hard for external stakeholders to distinguish between genuine and superficial efforts.

Many sustainability teams face significant pressure from the C-suite to quickly boost ESG scores and sustainability rankings. This pressure can lead to tensions between long-term sustainability strategies and the need to show short-term gains. Companies may feel compelled to prioritize initiatives that deliver faster, albeit smaller, results rather than pursuing more challenging but impactful long-term projects. This often complicates the mission of sustainability teams and increases the temptation to resort to marketing spin.

So, what can we do about it?

Greenwashing may be here to stay, but there are several ways sustainability professionals can combat it and ensure their own initiatives remain credible and impactful.

Transparency is the foundation of trust in sustainability. Companies must commit to providing clear, detailed reports on their sustainability initiatives, including the methodologies used, progress metrics, and any challenges they face. Challenges should not be overlooked either as they tend to resonate with stakeholders. Showing how you moved past a sustainability obstacle is more believable then only listing an unbroken string of successes. Regular updates on sustainability goals and honest communication about setbacks help build credibility. Instead of relying on vague terms, companies should clearly define what sustainability means to them and how they are measuring progress.

Third-party certification and validation adds an essential layer of credibility to any company’s sustainability claims. Many organizations like the Carbon Trust, B Corp, or Science-Based Targets initiative (SBTi) offer certifications that require rigorous assessment. Yes, they add to the cost of your program, but the benefits outweigh the cost. These validations show that a company’s sustainability achievements are not only measurable but also in line with global standards. Additionally, come regulatory initiatives, like CSRD, require the assurance, so considering this as soon as you can is simply good business.

Obtaining independent audits of sustainability efforts helps remove doubts about environmental claims' integrity. This assurance is  valuable for building stakeholder trust and  as a defense against accusations of greenwashing. As highlighted in Sodali’s 2023 article, “Greenwashing: The Risks and Regulations You Should Know About”, growing regulatory scrutiny is making it increasingly critical for companies to back their claims with data and verified assurance.

Arguably, one of the most effective ways to build trust and fight greenwashing is to involve a wide range of stakeholders—including investors, customers, employees, and even community groups—in sustainability discussions. Company executives, assuming they are knowledgeable and well-versed in their companies' sustainability programs, are hugely influential. By proactively having ongoing dialogue, companies can demonstrate their commitment to transparency, receive valuable feedback, and generate buy-in for more ambitious sustainability projects. They can own their narrative on sustainability instead of passively addressing concerns.

Where greenwashing claims get tricky is where ambitions and commitments are publicly stated. Vague commitments like "achieving carbon neutrality" are difficult to prove, unconvincing and therefore need to be backed by specific, measurable targets with defined timelines. Even some of the audacious claims that came out of COP26 lacked coherent strategy even though they had clear timelines. By establishing concrete sustainability goals, companies can track progress more effectively and demonstrate the legitimacy of their claims. These goals should be tied to credible metrics, such as greenhouse gas (GHG) emissions, energy use, water consumption, or supply chain impact. What is more impactful, saying, "We aim to reduce emissions" or "We plan to reduce Scope 1 and 2 emissions by 40% by 2030, using 2019 as a baseline?” Clear metrics and deadlines reinforced with a clear strategy ensure that sustainability commitments are measurable and defensible.

 In conclusion, greenwashing will likely remain a significant obstacle in the path of genuine corporate sustainability. For sustainability professionals, confronting this issue requires a steadfast commitment to transparency, third-party validation, stakeholder engagement, and goal setting. It is disheartening to see companies make dubious claims and receive praise, but by focusing on genuine impact, sustainability teams can drive their organizations toward meaningful environmental progress. Ultimately, companies that recognize the importance of avoiding greenwashing and tackle it head-on stand to build more vital trust with their stakeholders and create a lasting positive impact.