How to Avoid Greenwashing

What Is Greenwashing?

Greenwashing is the practice of misrepresenting or overstating a product, service or organisation’s environmental or sustainability credentials. This can include making vague or unsubstantiated claims about environmental benefits, drawing misleading comparisons between products or services, or setting aspirational targets without evidence of meaningful action to achieve them.

As sustainability becomes an increasingly important competitive advantage, greenwashing is also considered a form of misleading or deceptive conduct and is prohibited under Australian Consumer Law.

While greenwashing is often associated with deliberate misconduct, it can also occur unintentionally through unclear language, omission of important information, or misuse of third-party certifications in advertising and marketing. As a result, even well-intentioned organisations may inadvertently engage in greenwashing.

Avoiding greenwashing should be a key consideration for any organisation promoting environmental or sustainability outcomes. In addition to increasing regulatory scrutiny and enforcement risk, greenwashing can damage brand reputation and undermine trust in environmentally conscious products and services.

There are several practical steps organisations can take to ensure sustainability claims are communicated clearly, accurately and credibly.

Choose the Right Language

Use Clear and Concise Language

When promoting environmental credentials, use clear language and avoid unnecessary jargon that may confuse consumers. Organisations should also exercise caution when using broad marketing terms. Phrases such as “industry-leading” or “all-natural” may be considered exaggerated and could mislead consumers about the environmental benefits of a product or service.

Be Specific

Environmental claims should always be specific to the product or service being promoted. Broad statements about an organisation’s overall environmental performance may also mislead consumers if they could reasonably be interpreted as applying to specific products or services.

Example

If an organisation has achieved Australian Government-endorsed Climate Active Carbon Neutral Certification for its operations only (that is, as a Certified Organisation), communications about certified carbon neutrality, including use of the Climate Active logo, must not imply certification applies to products or services. Products and services must undergo separate certification processes and be communicated accordingly.

Provide Evidence

Organisations must be able to substantiate environmental claims with credible evidence, and consumers should have easy access to that information, either through the product or service itself or via the organisation’s website. This also applies to broader organisational commitments, such as “net zero by 2050”. In these cases, organisations should clearly outline the actions being taken to achieve targets and accurately communicate future implementation plans.

Use Certifications and Accreditations Correctly

Carefully review the guidelines associated with environmental certifications and accreditations to ensure the correct logos, claims and terminology are used. Using Climate Active as an example, organisations should clearly explain how certification applies to the business, including any limitations, exclusions or emissions boundary considerations.

Conduct a Website and Marketing Audit

Organisations should regularly review websites, promotional materials and sustainability communications to ensure all claims remain accurate, current and supported by evidence. Regular reviews can help identify outdated or potentially misleading information before it creates reputational or regulatory risk. If you have questions about greenwashing risks or would like support reviewing your sustainability communications, please contact us at info@pangolin.com.au.