Consumers and investors are increasingly demanding that businesses operate responsibly. In response, many companies now communicate their commitment to environmental, social and governance values. However, not all sustainability claims are genuine.
Greenwashing is the practice of misleading consumers, investors or stakeholders about a company’s environmental practices, sustainability performance or positive impact. It has become increasingly common as sustainability has moved closer to the centre of business communication.
At Viridis Consultancy, we believe that transparency and authenticity are cornerstones of sustainable business. This guide is designed to help you identify greenwashing and make more informed decisions, whether you are a consumer, investor or organisation working to improve your ESG practices.
What is greenwashing?
Greenwashing occurs when a company conveys a false impression or provides misleading information about how environmentally sound its products, services or operations really are.
It can take many forms: exaggerated claims, vague language, irrelevant certifications, selective disclosure or marketing tactics designed to distract attention from the company’s broader impact.
At its core, greenwashing undermines genuine sustainability efforts. It erodes trust, misleads consumers and investors, and can delay meaningful environmental action.
Common signs of greenwashing
Greenwashing is not always obvious. Some claims may sound credible at first, but become weaker when you look for evidence, data and transparency. Here are some of the most common warning signs.
1. Vague or undefined language
Terms such as eco-friendly, natural, green or sustainable are often used without clear definitions or measurable proof.
A genuine commitment to sustainability should be supported by specific, verifiable actions and data.
Red flag: broad, feel-good language without supporting evidence.
What to verify: look for clear explanations and measurable claims, such as the percentage of recycled materials used, the scope of carbon reduction commitments, or the methodology behind climate-related targets.
2. Lack of transparency
Companies that are truly committed to sustainability usually share their goals, methods, progress and challenges. Greenwashing often relies on limited disclosure or highly curated information.
Red flag: only positive stories are shared, with no mention of difficulties, trade-offs, areas for improvement or independent verification.
What to verify: look for detailed sustainability or ESG reports, preferably aligned with recognised frameworks and supported by independent assurance where applicable.
3. Irrelevant or misleading certifications
Some companies use self-created “green” logos or certifications that are not connected to recognised standards. Others highlight minor sustainable aspects of their operations while ignoring more significant negative impacts.
Red flag: certifications or labels that cannot be traced to a credible standard, or that only cover a very limited aspect of the product.
What to verify: check whether the claim is connected to a recognised third-party standard, certification body or transparent methodology.
4. Focus on a single green attribute
Some companies highlight one positive feature, such as recycled packaging, while leaving major environmental or social impacts unaddressed elsewhere in the value chain.
Red flag: strong emphasis on a minor sustainable feature while the broader business impact remains unclear.
What to verify: look beyond isolated improvements. Consider the company’s supply chain, production methods, energy use, labour practices, logistics, waste management and product end-of-life.
5. Use of imagery over substance
Many greenwashing campaigns rely heavily on visual cues such as forests, wildlife, leaves, earthy colours and natural landscapes to create an impression of environmental responsibility.
Visual communication can support a sustainability message, but it should not replace evidence.
Red flag: nature-themed marketing without clear, verifiable sustainability claims.
What to verify: examine the actual sustainability practices described by the company, not only the images, colours or emotional tone used in the campaign.
How to verify sustainability claims
Recognising warning signs is only the first step. To evaluate whether a company is genuinely committed to sustainability, it is important to look for evidence, consistency and accountability.
Read official sustainability reports
Look for annual sustainability or ESG reports that explain the company’s strategy, material topics, targets, progress and performance indicators. Reports aligned with recognised frameworks are generally more useful than generic marketing statements.
Look for independent verification
Third-party audits, assurance statements, recognised certifications and validated targets can provide stronger evidence of authenticity. They do not automatically make a company sustainable, but they can help support credibility.
Evaluate the entire supply chain
A truly sustainable company should address sustainability not only in its final products, but also across sourcing, production, logistics, labour practices, packaging, use and waste management.
Research beyond the company website
Company websites are useful, but they are not enough. Look for independent sources such as news articles, watchdog reports, NGO assessments, industry analysis and stakeholder feedback.
Check for measurable goals
Genuine sustainability efforts are usually specific, measurable and time-bound. Companies should publish clear objectives and report transparently on their progress, including where targets have not yet been achieved.
Why greenwashing matters
Greenwashing damages the credibility of businesses that are genuinely working to improve their sustainability performance. It misleads consumers and investors, creates confusion in the market and weakens trust in ESG communication.
By learning how to spot greenwashing, consumers and organisations can support more responsible business practices and encourage a transition towards a more transparent and sustainable economy.
At Viridis Consultancy, we work with businesses not only to avoid greenwashing, but to build robust, honest and transparent sustainability strategies that create real impact.
If your organisation is unsure where to start, or needs support evaluating and communicating its sustainability practices with greater clarity, Viridis can help you build a more credible path forward.