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Green Washing and Green Blushing

ARTICLE
Green Washing is rampant world over. Presently due to easy communication, increased awareness, and high
level of expectations, the claims made by companies are easily challenged or see through in the current
scenario. All stake holders including Regulatory authorities and Monitoring Agencies world over have
started keeping close watch on such tall claims which are without any substantial supporting facts and
figures and documents and general in nature. The new guidelines and legal framework are evolving with
sufficient powers to penalize the corporates playing truant.

BACK GROUND
The concept of Greenwashing emerged in the 1980s and 1990s,
as the environmental movement gained momentum and
companies began to realize that consumers were increasingly
concerned about the environmental impact of the products
they were buying. Some companies began to market their
products as “green” or “eco-friendly,” even if those claims were
not entirely accurate.
The term “Greenwashing” was coined by environmentalist
Manoj Sonawala, ACS Jay Westerveld in a 1986 essay titled “The Greening of
Chairman Corporate America.” In the essay, Westerveld criticized
Manoyog GRC Advisors Private Limited hotels for encouraging guests to reuse their towels to “save
msonawala@grcadvisors.uk the environment,” even though the primary motivation for
this policy was to save money on laundry costs. Westerveld
argued that this was an example of Greenwashing, and that
companies were using environmental claims to promote their

“G
INTRODUCTION products without actually making meaningful changes to
their environmental practices.
reenwashing” refers to the act
Since then, the concept of Greenwashing has become
of making exaggerated or false
increasingly relevant as more and more companies make
claims about the environmental
environmental claims in their marketing materials. As
friendliness or sustainability of a
consumers become more aware of environmental issues, they
product, service, or company. The
are increasingly skeptical of green claims and are demanding
term is used to describe marketing
more transparency and accountability from companies that
efforts that are designed to mislead consumers into thinking
market themselves as environmentally responsible.
that a product or service is more environmentally friendly
than it actually is. GREENWASHING V/S. GREENBLUSHING
“Green blushing” is a term that is sometimes used to describe
Greenwashing and Greenblushing are two opposite
the opposite of Greenwashing. Instead of exaggerating
phenomena related to a company’s environmental
their environmental credentials, a company that is “green
performance and communication.
blushing” may downplay or understate their environmental
performance, or be hesitant to promote their sustainability Greenwashing refers to the act of making exaggerated or false
initiatives for fear of being accused of Greenwashing. claims about a company’s environmental or sustainability
credentials. It can involve misleading marketing or
Greenwashing can take many different forms, such as using communications, such as using green imagery or language to
vague or meaningless terms like “all natural” or “eco-friendly,” imply that a product is environmentally friendly when it is
using images of nature or greenery in marketing materials, or not. Greenwashing is generally viewed as a negative practice
making claims that are technically true but are irrelevant or because it can mislead consumers and other stakeholders and
insignificant in terms of the product’s overall environmental erode trust in sustainability initiatives.
impact.
On the other hand, Greenblushing refers to the act of
Greenwashing is a serious issue because it can deceive downplaying or under-communicating a company’s
consumers and undermine efforts to promote genuine environmental or sustainability performance. This can
sustainability and environmental responsibility. Consumers result from a reluctance to appear boastful or fear of being
who are interested in purchasing environmentally friendly accused of Greenwashing. While Greenblushing may be
products should be aware of the potential for Greenwashing well-intentioned, it can result in missed opportunities to
and should look for products that have been independently communicate a company’s sustainability achievements and
certified by reputable organizations. contribute to the broader sustainability movement.

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ARTICLE Green Washing and Green Blushing

In summary, Greenwashing and Greenblushing are two opposite Finally, some companies may simply not prioritize
ends of a spectrum related to a company’s environmental sustainability as a strategic objective, and may view
performance and communication. Greenwashing involves sustainability initiatives as a “nice-to-have” rather than a core
exaggerated or false claims, while Greenblushing involves component of their business strategy. In these cases, companies
downplaying or under-communicating a company’s may be less inclined to promote their sustainability initiatives
environmental performance. or to invest heavily in sustainability-related activities.
Both Greenwashing and Greenblushing needs to be avoided While Greenblushing may be well-intentioned, it can lead to
as both can be risky for companies, albeit in different ways, missed opportunities for companies to differentiate themselves
and can be harmful to companies’ sustainability efforts. based on their sustainability performance and can undermine
Greenwashing can lead to accusations of dishonesty and efforts to build trust with stakeholders. Companies can avoid
misrepresentation, which can erode trust with stakeholders Greenblushing and promote their sustainability performance
and damage a company’s reputation. In extreme cases, it can in a credible and effective way. This can help build trust with
also lead to legal or regulatory action, which can be costly and stakeholders, differentiate themselves from competitors, and
time-consuming. contribute to a more sustainable future.
Green blushing, on the other hand, is risky because it can IS THERE ANY GUIDELINES / FRAMEWORK
lead to missed opportunities for companies to differentiate
themselves based on their sustainability performance. If FOR GREENBLUSHING?
companies are too hesitant to promote their sustainability There are currently no specific or widely recognized
initiatives, they may miss out on the benefits of building guidelines or frameworks specifically for green blushing, as it
trust with stakeholders, such as increased customer loyalty, is a relatively new concept that has emerged as a counterpoint
employee engagement, and investor interest. As such, to Greenwashing. Greenblushing is a relatively new concept
it is important for companies to find ways to effectively and has not yet been widely studied or addressed by industry
communicate their sustainability performance, even if they groups or regulatory bodies. However, there are several best
are concerned about accusations of Greenwashing. practices that companies can follow and there are various
To avoid both these issues, companies should focus on guidelines and frameworks that companies can use to ensure
being transparent and honest about their sustainability that their sustainability claims are accurate and credible, and
performance, using clear and credible communication, and to avoid the appearance of green blushing.
using third-party standards and certifications to provide
independent verification of their sustainability initiatives THESE INCLUDE
and credentials. By doing so, companies can build trust with
stakeholders, differentiate themselves from competitors, and 1. The Global Reporting Initiative (GRI): The GRI provides
contribute to a more sustainable future. a framework for sustainability reporting that covers a
range of topics, including environmental impact, social
COMPANIES MAY RESORT TO GREENBLUSHING responsibility, and economic performance.
FOR SEVERAL REASONS
2. ISO 14001: ISO 14001 is an international standard for
1. Lack of confidence in their sustainability performance: environmental management systems that provides a
Companies that are uncertain about their sustainability framework for companies to manage their environmental
performance may be hesitant to promote their impact and improve their sustainability performance.
sustainability initiatives for fear of being accused of
Greenwashing, or a perception that their sustainability 3. The Carbon Trust Standard: The Carbon Trust Standard is
initiatives are not strong enough to stand up to scrutiny a certification program that helps companies to measure,
from stakeholders. Companies that are concerned about manage, and reduce their carbon emissions.
the potential for Greenwashing accusations may downplay
4. The Federal Trade Commission’s (FTC) Green Guides:
their sustainability performance to avoid negative
The FTC’s Green Guides provide guidelines for companies
attention. Greenwashing can be damaging to a company’s
to ensure that their environmental claims are truthful and
reputation and can erode trust with stakeholders, so some
not deceptive.
companies may be hesitant to promote their sustainability
initiatives for fear of being accused of exaggerating their By following these guidelines and frameworks, companies can
environmental credentials. ensure that their sustainability claims are credible and not
2. Limited resources: Companies that lack the resources perceived as green blushing.
to invest in sustainability initiatives or to communicate
effectively about their sustainability performance GREENWASHING & GOOD GOVERNANCE
may understate their environmental credentials or Greenwashing can be linked to good governance in a few
sustainability performance. ways. First, good governance involves transparency and
3. Limited customer demand: In some cases, companies honesty in business practices, which includes being truthful
may perceive that their customers are not interested in in environmental claims. Greenwashing involves making
sustainability or environmental issues, and may not see a exaggerated or misleading environmental claims, which goes
need to promote their sustainability performance. against the principles of good governance.

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Second, good governance includes considering the interests WAYS TO MEET CHALLENGES
of all stakeholders, including the environment and society.
Greenwashing can harm both the environment and society Curb Greenwashing can be challenging, but there are several
by promoting unsustainable practices or by diverting ways to address it.
attention and resources away from genuine sustainability
efforts. 1. Improve regulation and enforcement: Governments can
improve regulations related to environmental claims
Finally, good governance involves accountability and and increase enforcement to ensure that companies are
responsibility for actions. Greenwashing can undermine held accountable for their environmental claims. This
accountability by making it difficult for stakeholders to assess can include introducing penalties for false or misleading
a company’s true environmental impact and hold them environmental claims.
accountable for any harm caused.
2. Encourage third-party certification: Third-party
In order to promote good governance and combat certification programs can provide independent
Greenwashing, companies should strive to be transparent and verification of a company’s environmental claims, which
honest in their environmental claims, prioritize sustainability can help to increase transparency and accountability.
efforts that benefit both the environment and society, and
3. Promote education and awareness: Consumers, investors,
be accountable for their actions. Companies should also
and other stakeholders should be educated on what
consider implementing third-party certification programs
Greenwashing is and how to recognize it. This can include
and independent audits to provide greater assurance
promoting greater understanding of environmental issues
of their environmental claims. By doing so, companies
and sustainability, as well as educating consumers on how
can build trust with stakeholders and demonstrate a
to identify legitimate environmental claims.
commitment to good governance and genuine sustainability
efforts. 4. Emphasize genuine sustainability efforts: Companies
should prioritize genuine sustainability efforts and focus
HOW GREENWASHING CAN BE INTERTWINED on making measurable progress towards environmental
WITH ESG? goals. This can include implementing sustainability
reporting standards, setting meaningful sustainability
Greenwashing can be intertwined with ESG (Environmental, targets, and engaging stakeholders in sustainability efforts.
Social, and Governance) in several ways. ESG investing
is a growing trend, and many investors are looking for 5. Increase collaboration: Collaboration between companies,
companies that are committed to sustainability and governments, non-governmental organizations, and other
social responsibility. This has led some companies to stakeholders can help to promote sustainability and reduce
engage in Greenwashing to make themselves appear more Greenwashing. This can include sharing best practices,
environmentally and socially responsible than they actually collaborating on sustainability initiatives, and developing
are. industry-wide sustainability standards.

For example, a company might claim to have a strong Overall, curbing Greenwashing requires a concerted
commitment to environmental sustainability, but in reality, it effort from all stakeholders. By improving regulation
may be engaging in practices that harm the environment, such and enforcement, promoting education and awareness,
as using large amounts of water or energy or contributing to emphasizing genuine sustainability efforts, and increasing
deforestation. Similarly, a company might claim to have strong collaboration, it is possible to reduce the prevalence of
social policies, such as fair labor practices, but in reality, it Greenwashing and promote genuine sustainability efforts.
may be exploiting workers or engaging in other unethical
practices. The legal framework includes several laws and regulations that
are aimed at protecting consumers from false or misleading
Greenwashing can be particularly problematic in the environmental claims. While India’s legal framework against
context of ESG investing because it can lead to investors Greenwashing may not be as comprehensive as some other
making decisions based on false or misleading information. countries, there are laws and regulations in place to address
This can harm both investors and the companies they false or misleading environmental claims.
invest in, as well as the environment and society more
broadly. LEGAL FRAMEWORK TO CURB GREENWASHING
IN INDIA
To avoid Greenwashing in ESG investing, it is important
for investors to carefully evaluate a company’s sustainability 1. Bureau of Indian Standards (BIS): The BIS has developed a
claims and look for evidence of real progress towards standard for eco-labelling of products and services called
sustainability goals. This might involve looking at a company’s IS/ISO 14024:1999. This standard sets out criteria for the
environmental impact reports, social responsibility policies, use of eco-labels and provides guidelines for companies
and governance structures. Investors should also be wary of making environmental claims in their advertising.
companies that make vague or unsubstantiated claims about
their sustainability practices, as these may be a red flag for 2. The Consumer Protection Act, 2019: This law provides
Greenwashing. for the establishment of a central consumer protection

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ARTICLE Green Washing and Green Blushing

authority to regulate matters related to unfair trade


practices, including false or misleading environmental
claims.
The term “Greenwashing” was coined by
3. Ministry of Environment, Forest and Climate Change
(MoEFCC): The MoEFCC has launched a program environmentalist Jay Westerveld in a 1986 essay
called the Green Good Deeds movement, which aims to titled “The Greening of Corporate America.”
encourage individuals and organizations to take specific In the essay, Westerveld criticized hotels for
actions to reduce their environmental impact. The encouraging guests to reuse their towels to “save
program also provides guidelines for companies making the environment.”
environmental claims in their advertising.
4. The Environment Protection Act, 1986: This law provides
for the prevention and control of environmental pollution
and the protection of the environment. The act includes is also important for consumers to be aware of the risks of
provisions for penalties for violations of environmental Greenwashing and to take a critical approach to evaluating
standards and regulations. sustainability claims, regardless of where the product or
5. Advertising Standards Council of India (ASCI): The ASCI service is being sold.
has a code of self-regulation for advertising in India.
The code requires that environmental claims be specific, STATUS OF GREENWASHING IN OTHER
accurate, and not misleading. GEOGRAPHIES
6. Green Rating Project (GRP): The GRP is an initiative of Several countries and regions around the world have issued
the Centre for Science and Environment (CSE) that rates guidelines or regulations against Greenwashing.
the environmental performance of companies in India.
The ratings are based on an assessment of the company’s United States: In the United States, the Federal Trade
environmental management systems, policies, and Commission (FTC) has issued guidelines on environmental
performance. marketing claims, known as the Green Guides, which provide
guidance on how companies can make truthful and non-
7. Indian Green Building Council (IGBC): The IGBC is a non- deceptive environmental claims in their advertising. The
profit organization that promotes sustainable building Green Guides also prohibit false or misleading claims, such
practices in India. The IGBC has developed a rating as using unqualified terms like “eco-friendly” or “green.” The
system for green buildings, which provides guidelines for guidelines require that environmental claims be specific and
companies making environmental claims related to their not misleading, and that they be supported by competent and
buildings. reliable evidence. The Green Guides are not legally binding,
but the FTC can take legal action against companies that
These initiatives in India aim to promote transparency and make false or misleading environmental claims.
accountability in environmental claims made by companies
and to promote genuine sustainability efforts. Consumers can European Union: The European Union has implemented
look for eco-labels and green certifications as a way to identify the “Green Claims” Regulation, which sets out rules for
products and companies that are genuinely environmentally companies making environmental claims in their advertising.
responsible. The regulation requires that environmental claims be specific,
accurate, and verifiable. In Europe, the European Commission
GREENWASHING BEYOND BOUNDARIES issued guidelines on environmental claims in 2020, which
aim to harmonize the rules for environmental claims across
Greenwashing is not limited to any particular geographic the European Union (EU). The guidelines include criteria for
location or industry sector. In fact, as the demand for substantiating environmental claims, such as using science-
sustainable products and services continues to grow globally, based metrics and avoiding misleading or vague language.
the risk of Greenwashing is increasing, and it can occur in any The guidelines are not legally binding, but companies that
country or industry. violate consumer protection laws can face legal action.
Some companies may use misleading or vague environmental Canada: The Competition Bureau in Canada has in 2019,
claims to sell their products or services to consumers who issued guidelines, the Environmental Claims: A Guide
are interested in sustainability, regardless of where they are for Industry and Advertisers which provides guidance for
located. Additionally, multinational companies may use companies making environmental claims in their advertising
different sustainability standards and messaging in different on how to avoid making false or misleading representations
regions, which can contribute to confusion and Greenwashing. in the marketing of products and services. The guidelines
require that environmental claims be specific, accurate,
To address Greenwashing beyond boundaries, it is important and not misleading, using clear and specific language and
to have globally recognized standards and certifications for providing evidence to support environmental claims.
sustainability that are rigorously enforced. This can help
to ensure that companies are held accountable for their Australia: The Australian Competition and Consumer
environmental claims, regardless of where they operate. It Commission (ACCC) has issued the Green Marketing and

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the Australian Consumer Law guide in 2019, which provides consumers with more reliable information about the
guidance on how to make truthful and accurate environmental environmental impact of the products they are purchasing.
claims for companies making environmental claims in their
advertising. The guidelines require that environmental A FEW HIGH PROFILE CASE LAWS FILED
claims be specific, accurate, and not misleading. The guide FOR GREENWASHING
also outlines the penalties for making false or misleading
environmental claims. 1. Volkswagen “Clean Diesel” scandal: In 2015, the United
States Environmental Protection Agency (EPA) caught
United Kingdom: The Advertising Standards Authority Volkswagen of using software in its “Clean Diesel” cars
(ASA) in the United Kingdom has issued guidelines for that cheated emissions tests. The company had marketed
companies making environmental claims in their advertising. these cars as environmentally friendly, but the scandal
The guidelines require that environmental claims be specific, revealed that in reality, they were emitting up to 40 times
accurate, and not misleading. In addition to these efforts, the legal limit of pollutants. Volkswagen faced numerous
there are also independent organizations that certify products lawsuits and regulatory fines and ultimately settled with
as environmentally friendly, such as the Forest Stewardship the U.S. government and paid billions of dollars in fines
Council (FSC), the Rainforest Alliance, and the Energy Star and compensation to affected customers.
program. Consumers can look for these certifications as a
way to identify products that are genuinely environmentally 2. Tesco “Everyday Value” light bulbs: In 2010, Tesco, a UK
responsible. supermarket chain, was found to have misled customers
about the environmental benefits of its “Everyday Value”
These are just a few examples, and many other countries and light bulbs with false claims about the carbon footprint.
regions have also enacted laws and regulations to address The company had claimed that the bulbs were “carbon
Greenwashing, such as China’s Green Advertising Law and neutral,” and would last for 8 years and save customers
Brazil’s Consumer Protection Code. money and energy, but it was found that the claims were
based on flawed calculations and in reality, they lasted only
Overall, while the legal frameworks against Greenwashing a few months and were not energy efficient. Tesco was
vary by country and region, there is a growing recognition fined £300,000 by the Advertising Standards Authority
of the need to address Greenwashing and protect consumers (ASA).
from false or misleading environmental claims.
3. KFC “Rainforest Alliance Certified” coffee: In 2010, KFC,
The effectiveness of measures to curb Greenwashing can a fast-food chain, was found to have misled customers
vary depending on the specific initiative and the context in about the environmental credentials of its coffee. The
which it is implemented. However, overall these measures company claimed that the coffee was certified by the
can be effective in reducing the prevalence of Greenwashing Rainforest Alliance, a non-profit organization that
and promoting genuine sustainability efforts. By setting promotes sustainable agriculture. However, the coffee was
clear guidelines and standards for environmental claims, only 10% certified, and KFC did not have permission to
these measures can help to ensure that companies are not use the Rainforest Alliance logo in its advertising. KFC
misleading consumers with false or exaggerated claims about was fined £7,500 by the ASA.
their environmental impact.
4. H&M: In 2020, a group of environmental organizations
For example, in the United States, the FTC has brought filed a lawsuit against H&M, alleging that the company
enforcement actions against companies that have made had engaged in Greenwashing by misleading customers
false or misleading environmental claims, which has helped about its environmental impact. The lawsuit claimed that
to promote greater transparency and accountability in H&M’s marketing materials were misleading and that the
environmental marketing. company had not made significant progress towards its
sustainability goals.
In addition, independent certification programs and eco-
labels can provide consumers with a reliable way to identify There have been case laws filed against Greenwashing in India
products and companies that are genuinely environmentally as well:
responsible. These certifications and labels can provide
consumers with confidence that the claims made by the 1. Godrej Industries: In 2012, Godrej Industries was fined
company have been verified by an independent third party. Rs. 5 lakh by the Advertising Standards Council of India
(ASCI) for making false and misleading claims about its
However, there are also limitations to these measures. For Good Knight Fast Card mosquito repellent. The company
example, some companies may still engage in Greenwashing had claimed that the product was “100% natural” and
even if there are guidelines and standards in place. “chemical-free,”
Additionally, some consumers may not be aware of these
initiatives or may not prioritize sustainability when making 2. HUL Greenwash case: In 2011, the Indian government’s
purchasing decisions. Ministry of Environment and Forests filed a case against
Hindustan Unilever Limited (HUL) for making false
Overall, while these measures may not completely eliminate claims in its advertising about the environmental benefits
Greenwashing, they can help to promote greater transparency of its Surf Excel Easy Wash detergent. The company
and accountability in environmental marketing and provide had claimed that the detergent was “100% natural”

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ARTICLE Green Washing and Green Blushing

and “environment-friendly”, but in reality, it contained


synthetic ingredients. HUL was fined Rs. 10 lakhs by the
Central Pollution Control Board.
3. Voltas AC Greenwash case: In 2013, Voltas Limited, a Tata
Group company that manufactures air conditioners, was
accused of making false claims about the energy efficiency
of its ACs. The company had claimed that its ACs were
“eco-friendly” and had a “5-star energy rating”, but in
reality, they had a lower energy rating. Voltas was fined
Rs. 50,000 by the ASCI.
4. Godrej Soaps Greenwash case: In 2015, Godrej Consumer
Products Limited was accused of making false claims
about the environmental benefits of its Godrej No. 1
soap. The company had claimed that the soap was “100%
natural”, “biodegradable”, and “eco-friendly”, but in reality,
it contained synthetic ingredients. Godrej was fined Rs. 15
lakhs by the ASCI.
These cases demonstrate the importance of ensuring that
environmental claims made by companies are specific,
accurate, and not misleading. Companies that engage in
Greenwashing can face legal action and damage to their
reputation. As consumers become more aware by researching
and verifying environmental claims and the risks of
Greenwashing, it is likely that more companies will be held
accountable for misleading environmental claims.
There is a need for more stringent guidelines to prevent verification of environmental claims to promote transparency
Greenwashing and ensure that companies are held and accountability in environmental marketing.
accountable for making misleading or false environmental
claims. While there are existing guidelines and regulations in WHERE INDIA STANDS
place in many countries, they may not always be sufficient to India has taken some steps towards developing guidelines to
address the rapidly evolving nature of environmental issues prevent Greenwashing. In 2018, the Ministry of Environment,
and the increasingly sophisticated marketing tactics used by Forest and Climate Change released a draft “Guidelines for
companies. Environmentally Sustainable Practices” aimed at preventing
More specifically, there is a need for clear and specific guidelines Greenwashing and promoting genuine sustainability efforts.
that define what constitutes a “green” or “sustainable” product The guidelines include a set of criteria that companies should
or practice. These guidelines should be developed through a follow when making environmental claims, such as being
transparent and participatory process that involves input transparent about their environmental impact, using credible
from stakeholders such as consumer groups, environmental and verifiable information, and avoiding vague or ambiguous
organizations, and industry representatives. claims.

Additionally, there should be more rigorous enforcement of In addition, the Advertising Standards Council of India
existing regulations, with meaningful penalties for companies (ASCI) has released guidelines for green marketing and
that engage in Greenwashing. This could include fines, legal advertising. These guidelines prohibit claims that are false,
action, and requirements to correct misleading claims. misleading, or likely to deceive consumers, and require that
all environmental claims be substantiated by reliable scientific
Finally, independent third-party certification programs evidence.
and eco-labels can provide consumers with a reliable way
to identify products and companies that are genuinely USE OF TECHNOLOGY TO IDENTIFY / CURB
environmentally responsible. However, these programs GREENWASHING?
should also be subject to independent oversight and regularly
evaluated to ensure that they are effective in promoting There are several ways that technology can be used to monitor
sustainability and preventing Greenwashing. and curb Greenwashing, which refers to the practice of
making false or exaggerated claims about the environmental
In summary, while existing guidelines and regulations benefits of a product or service.
are a step in the right direction, there is a need for more
stringent and specific guidelines, rigorous enforcement, and One way technology can be used is through the development
independent third-party certification programs to prevent of tools that can automatically analyze and assess the
Greenwashing and promote genuine sustainability efforts. accuracy of green marketing claims. For example, machine
It also highlights the need for independent certification and learning algorithms can be trained to identify keywords

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and phrases commonly associated with Greenwashing, and widespread. This can result in fines, legal action, and
then flag products or services that use those phrases for negative publicity.
further investigation. Technology can be used to monitor
Greenwashing is through the use of data analytics and 4. Increased Competition: Companies that engage in
machine learning algorithms. These tools can analyze large Greenwashing can face increased competition from
amounts of data, such as product descriptions, marketing companies that make genuine efforts to reduce their
materials, and environmental impact assessments, to identify environmental impact. Consumers may choose to
inconsistencies and inaccuracies in green claims. purchase products or services from companies that are
seen as more environmentally responsible.
Another approach is to create a database or registry of
verified environmentally-friendly products and services, 5. Increased Costs: Companies that engage in Greenwashing
which consumers can consult to check the legitimacy of green may incur increased costs, such as the cost of rebranding
claims. This database could be maintained by a third-party or repositioning their products or services. They may also
organization or government agency, and could be accessed need to invest in more rigorous sustainability programs
through a mobile app or website. and reporting to avoid future accusations of Greenwashing.

Technology can also be used to curb Greenwashing is through Corporates that engage in Greenwashing can face backlash
the development of certifications and labeling programs from a variety of stakeholders, including:
that are backed by independent verification and validation 1. Consumers: Consumers who feel misled by Greenwashing
processes. These programs can be supported by blockchain claims may take their business elsewhere, resulting in lost
technology, which provides a transparent and immutable sales and revenue for the company. They may also share
record of the product’s environmental impact throughout its their negative experiences with others through social
lifecycle. media, word of mouth, or online reviews.
In addition, blockchain technology can be used to create a 2. Environmental Groups: Environmental groups may
transparent and secure system for tracking the environmental publicly criticize companies that engage in Greenwashing
impact of products and services throughout their lifecycle. and may launch campaigns to raise awareness about the
This could include information on the sourcing of raw issue. These campaigns can generate negative publicity
materials, the manufacturing process, and the disposal or and damage the company’s reputation.
recycling of the product at the end of its life.
3. Investors: Investors may be less likely to invest in
Overall, technology has the potential to be a powerful tool companies that engage in Greenwashing, particularly if
in the fight against Greenwashing, by enabling more accurate they are concerned about the company’s reputation or
and transparent communication about the environmental potential legal liability.
impact of products and services.
4. Regulatory Agencies: Regulatory agencies may investigate
Finally, consumers can use technology to research and verify companies that engage in Greenwashing and may impose
the environmental claims made by companies. This can include fines or other penalties if they find evidence of false or
using online resources, such as environmental databases and misleading claims.
product comparison websites, to compare products and their
environmental impact. Consumers can also use social media 5. Competitors: Competitors who make genuine efforts to
to share information about Greenwashing practices and hold reduce their environmental impact may publicly criticize
companies accountable for their environmental claims. companies that engage in Greenwashing and use the issue
to differentiate themselves in the marketplace.
DAMAGES
Overall, the backlash from Greenwashing can be significant
Corporates that engage in Greenwashing can face several for companies, resulting in lost sales, damage to reputation,
challenges, including: legal liability, increased costs and increased regulatory
scrutiny. Companies that make genuine efforts to reduce their
1. Damage to Reputation: Greenwashing can damage a environmental impact and avoid Greenwashing may be more
company’s reputation and erode consumer trust. When likely to build consumer trust and establish a competitive
consumers discover that a company has made false or advantage in the marketplace.
misleading environmental claims, they may be less likely
to purchase its products or services in the future. To avoid Greenwashing, companies can take several steps,
including:
2. Legal Liability: Companies that engage in Greenwashing
can face legal liability, particularly if their claims are found 1. Ensure Claims Are Substantiated: Companies should
to be false or misleading. In some cases, companies may ensure that any environmental claims they make are
be fined or face legal action from consumers or regulatory accurate and substantiated by scientific evidence. They
agencies. should avoid vague or misleading language and ensure
that their claims are supported by clear, specific data.
3. Increased Regulatory Scrutiny: Companies that engage in
Greenwashing can attract increased regulatory scrutiny, 2. Use Third-Party Certifications: Companies can use third-
particularly if their claims are particularly egregious or party certifications, such as eco-labels or environmental

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management system certifications, to provide independent of a product or service throughout its entire life cycle,
verification of their environmental claims. This can from raw material extraction to end-of-life disposal.
help build consumer trust and demonstrate a genuine LCAs can provide consumers and other stakeholders
commitment to sustainability. with a comprehensive understanding of a product’s
environmental impact.
3. Use Transparent Reporting: Companies can use
transparent reporting to provide detailed information Thus, third-party certifications can help companies avoid
about their environmental impact and sustainability Greenwashing and build credibility with consumers and other
initiatives. This can help build trust with consumers and stakeholders. By obtaining independent verification of their
other stakeholders and demonstrate a commitment to environmental claims, companies can demonstrate a genuine
accountability and transparency. commitment to sustainability and differentiate themselves in
the marketplace.
4. Avoid Greenwashing Traps: Companies should avoid
common Greenwashing traps, such as making vague or There are several institutes in India that provide third-party
general claims, using misleading visuals, or making claims certifications for environmental claims, including:
that are technically true but misleading in context. They
should also avoid making claims about environmental 1. Bureau of Indian Standards (BIS): BIS is a national
attributes that are not relevant to their products or standards body in India that provides certification for
services. various products and services, including environmental
certifications such as the Eco-Mark certification. The
5. Adopt a Comprehensive Sustainability Strategy: Eco-Mark certification is a voluntary certification scheme
Companies should adopt a comprehensive sustainability that indicates that a product meets certain environmental
strategy that goes beyond marketing claims and addresses standards.
the company’s overall environmental impact. This can
include efforts to reduce greenhouse gas emissions, 2. Indian Green Building Council (IGBC): IGBC is a non-
minimize waste, conserve natural resources, and support profit organization that provides certification for green
biodiversity. buildings in India. The IGBC Green Building certification
is a voluntary certification scheme that indicates that a
Overall, companies can avoid Greenwashing by ensuring that building meets certain environmental standards.
their environmental claims are accurate and substantiated,
using third-party certifications, adopting transparent 3. Centre for Science and Environment (CSE): CSE is a
reporting, avoiding Greenwashing traps, and adopting a non-profit organization that provides certification for
comprehensive sustainability strategy. environmental claims, such as the CSE Green Rating
Project (GRP) certification for industrial projects. The
THIRD PARTY CERTIFICATION FOR GRP certification indicates that an industrial project
meets certain environmental standards.
GREENWASHING CLAIMS
Third-party certification is a process in which an independent 4. Cradle to Cradle Products Innovation Institute (C2CPII):
organization assesses a company’s environmental claims C2CPII is an international non-profit organization that
to verify that they are accurate and meet certain standards. provides certification for products that meet certain
Third-party certifications can provide consumers and other environmental standards, such as the Cradle to Cradle
stakeholders with assurance that a company’s environmental certification. The Cradle to Cradle certification indicates
claims are credible and supported by scientific evidence. that a product is designed for circularity, using safe and
sustainable materials, and is produced using renewable
There are several types of third-party certifications that energy.
companies can obtain to support their environmental claims,
including: THE WAY FORWARD
1. Eco-labels: Eco-labels are third-party certifications The way forward against Greenwashing involves a
that indicate that a product or service meets certain comprehensive approach that involves multiple stakeholders,
environmental standards. Eco-labels can cover a range of including consumers, companies, governments, and non-
environmental attributes, such as energy efficiency, water governmental organizations. Some key strategies to combat
conservation, or sustainable sourcing. Greenwashing and promote more sustainable practices
include:
2. Environmental Management System (EMS) Certifications:
EMS certifications are third-party certifications that 1. Educating Consumers through increased Awareness: One
indicate that a company has implemented an environmental of the most important ways to create awareness against
management system that meets certain standards, such Greenwashing is to educate consumers about what it is
as ISO 14001. EMS certifications can provide assurance and providing them with tools to identify it. Awareness
that a company has a systematic approach to managing its campaigns can help consumers better understand
environmental impact. Greenwashing and how to identify accurate environmental
claims. This can include providing information about
3. Life Cycle Assessments (LCAs): LCAs are third-party common Greenwashing tactics and offering tips on how to
assessments that evaluate the environmental impact read and interpret environmental claims. Companies can

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Green Washing and Green Blushing

ARTICLE
also benefit from increased education on best practices environmental targets and reporting progress towards
for environmental marketing and communicating their meeting these targets. This can help ensure that
sustainability initiatives. sustainability is incorporated into decision-making
and that environmental claims are more accurate and
2. Collaboration and Building Partnerships: Collaborating meaningful.
with organizations that share similar values can help build
trust with consumers and enhance credibility. Building 8. Foster Innovation: Innovation can help drive sustainability
partnerships between stakeholders, including government by promoting new technologies and business models that
agencies, businesses, and civil society organizations such reduce environmental impact. Companies can foster
as non-profits and community groups, can help raise innovation by investing in research and development and
awareness about Greenwashing and amplify messaging, collaborating with other stakeholders.
can help drive the development and implementation of
sustainable practices and policies. Non-governmental By taking a multi-faceted approach that includes creating
organizations (NGOs) can play a critical role in advocating awareness against Greenwashing, education, third-party
for stronger regulations and promoting sustainable certifications, collaboration, partnerships, transparency and
practices. Collaborating with NGOs can help build trust accountability, media campaigns, and stronger government
with consumers and enhance credibility. regulations and enforcement, and integration of sustainability
into business strategies, companies can help create a culture
3. Transparency and Disclosure: Companies can of sustainability and avoid Greenwashing.
enhance transparency and disclosure by making their
environmental impact data publicly available by providing CONCLUSION
comprehensive and easily accessible environmental
data, including carbon footprint, energy use, and water While legal remedies can be a useful tool to curb
consumption, setting measurable goals, providing Greenwashing, they may not be sufficient on their own to
third-party verification of their claims and reporting on completely eradicate the problem. There are several reasons
progress towards sustainability goals. This can help build why this is the case:
trust with consumers and demonstrate a commitment to
transparency and accountability. 1. Limited Resources: Government agencies and regulators
often have limited resources to enforce laws and
4. Media Campaigns: Media campaigns, such as regulations related to Greenwashing. This can make it
advertising and social media, can help raise awareness difficult to identify and pursue cases of Greenwashing,
about Greenwashing and promote transparency and especially when companies are using sophisticated and
accountability. Companies can use media campaigns to deceptive tactics.
communicate their sustainability initiatives and highlight
their environmental impact data. 2. Complexity of Environmental Claims: Environmental
claims can be complex and difficult for consumers
5. Stronger Government Regulations and Enforcement: to understand. This can make it challenging for
Governments can strengthen regulations and enforcement regulators to determine whether claims are accurate or
mechanisms to prevent and penalize Greenwashing. This misleading.
can include creating clear guidelines for environmental
claims, providing oversight and monitoring, and imposing 3. Lack of International Standards: There is currently no
fines and other penalties for non-compliance. Government internationally recognized standard for Greenwashing,
regulations can also play a role in creating awareness against which can make it difficult to enforce laws and regulations
Greenwashing. Governments can require companies to across borders. This can also make it difficult for
provide accurate and substantiated environmental claims companies to know what standards to follow and how
and impose penalties for Greenwashing. to communicate their environmental performance to
consumers.
6. Third-Party Certifications and Standards: Third-party
certifications and standards can help establish clear and 4. Limited Scope of Legal Remedies: Legal remedies may be
measurable criteria for sustainable products and services, limited to specific types of claims or specific industries,
can provide a framework for companies to demonstrate and may not be sufficient to address all instances of
their commitment to sustainability and provide consumers Greenwashing.
with more accurate and trustworthy information and
provide consumers with a trusted and recognizable Given these challenges, it is important to complement legal
symbol of sustainability. remedies with other strategies to combat Greenwashing,
such as education and awareness campaigns, industry
7. Integration of Sustainability into Business Strategies: standards and certifications, and increased transparency and
Companies can emphasize the long-term impact of their accountability from companies. By taking a comprehensive
sustainability initiatives, rather than focusing on short- approach that involves multiple stakeholders, it may be
term gains. This can help build trust with consumers possible to address the problem of Greenwashing and
and demonstrate a commitment to sustainability over promote more sustainable practices across industries more
the long term. Companies can integrate sustainability effectively. 
into their business strategies by setting measurable  CS

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