Greenwashing: What it is and Why it Matters
Jan 28th 2025
Businesses and consumers continue to seek products that are more sustainable, and that’s a good thing. But what’s not so good is when companies take advantage of consumers’ good intentions and “greenwash” their products – portending them to be more sustainable and environmentally friendly than they actually are.
Such companies often using slick advertising and nature-themed packaging to imply environmental benefits like compostability despite not having certifications to support their claims.
Greenwashing, a definition
The term “greenwashing” comes from the word “green,” conveying something is eco-friendly, and “whitewashing,” which means to conceal the truth and cover up unpleasant facts. Typical greenwashing includes using misleading advertising or packaging to attract consumers seeking more sustainable choices. It’s also used in marketing to give brands a “green sheen,” diverting attention from the company’s harmful environmental practices.
Whether you are a business or a consumer, it’s important to educate yourself about greenwashing and learn how to distinguish legitimately sustainable products. The companies making the products you can trust are often leaders in innovation and sustainability with proven, time-tested and industry-recognized awards and certifications.
Why do companies greenwash?
Trends show that consumers are increasingly making the environment a priority, so companies feel pressure to make their product appear greener than competitors’. A real commitment to the environment often requires time, money and planning. But some companies take shortcuts by greenwashing to drive sales.
Part of the problem is the lack of regulation when it comes to defining “sustainable” or “eco-friendly” in advertising and marketing. Fortunately, some states are starting to address the issue with new laws and regulations. For example, in the U.S., Washington state and Colorado have new rules that require all compostable products to have labels using the word “compostable,” feature a third-party certification mark, and have a combination of color and design elements to distinguish them from non-compostable products.
How to spot greenwashing
Greenwashing may not be obvious, but here are some things to look for — and look out for:
Vague terms: Words like “green,” “clean,” “all-natural” or “eco-friendly” sound positive, but may not indicate anything specific or of measurable value. The U.S. Federal Trade Commission (FTC) does offer Green Guides to help companies understand what terms are permissible.
Certification: Industry-wide standards of certification are the opposite of vague or misleading claims in advertising. Legitimate certifications are backed and awarded by third-party groups with recognizable labels like BPI and USDA Organic. For example, at Eco-Products, many of our products are certified composable by BPI and display the BPI Certification Mark.
Misleading labels or imagery: Products may feature eco-friendly symbols like trees, leaves, flowers or boldface words like “eco-friendly.” This is a form of greenwashing that implies the product is closer to nature when it may be nothing of the sort.
How to avoid greenwashed products
Educate yourself: Educate yourself by doing your homework. Some companies publish their yearly goals and reports online that may spell out in detail their sustainability efforts, benchmarks or goals. In short, committed companies will be trying to do better by the environment with clear-cut measurable standards to which they hold themselves. You can read Eco-Products most recent Impact Report here.
Seek certifications: Research the certifications from third-party groups that are considered go-to standards for your industry such as BPI.
Ask about innovation: Look to websites or research case studies to see which companies are coming out with new and sustainable products.
Think big, support transparency: The companies working the hardest to provide greener products will lay out the pros and cons of choices that must be weighed depending on the product and the circumstances. The most forthright and transparent companies know that sustainability is about making changes that work for people, businesses and the environment, and not resorting to meaningless greenwashing tactics.
By holding companies accountable for false “green” claims, governments, consumers and businesses can weed out greenwashed products and persuade corporations to commit to a more sustainable future.