Blog post written by Emma Quekett
When large companies have teams of people creating the ‘perfect’ image, they can appear eco-friendly without putting in the work. In fact, only 5% of the largest 100 public companies in the UK have credible net-zero 2050 plans. A survey by Prospects shows that three-quarters of graduates said they would be more likely to apply to a company with strong sustainable practices. With a bit of critical analysis and knowing where to look, you can quickly spot Greenwashing.
What is Greenwashing?
Greenwashing is a misleading practice where companies or organisations falsely promote their products, services, or policies as environmentally friendly. This is done to appeal to environmentally conscious consumers without making any substantial efforts to reduce their environmental impact. The United Nations claim that Greenwashing distracts from and delays concrete and credible action.
The Problem with Carbon offsetting and Carbon Capture
Many companies lean on carbon offsetting—investing in tree planting or renewable energy projects—to cancel out their emissions. While this sounds good in theory, it’s often problematic:
- Human and Land Impacts: According to Greenpeace projects in the Global South can displace local communities or use land otherwise meant for food production.
- Time and Risk: Trees take decades to absorb promised CO₂ and are vulnerable to fires or droughts.
Carbon capture technologies are another “solution” often touted. However, these are expensive, unproven at scale, and come with risks like potential leaks [1]. Companies that rely solely on these strategies without addressing their emissions directly should raise a red flag [2].
Transparency
Greenwashing thrives on vague language like “natural,” “green,” or “eco-friendly,” often without specifics to back it up. Truly sustainable companies provide hard data. For example:
- If a company claims its offices are “sustainable,” do they specify how much energy they’ve saved or how much waste they’ve cut?
- Do the claims compare to the worst possible alternative, or do they ignore broader impacts [3]? For example, a company selling ‘sustainable’ electric scooters might compare each journey to one made by a car, rather than by cycling or taking the bus. Additionally, they might overlook the wider environmental impacts of the lithium used in their batteries.
You should be able to access this information online, at a careers fair, or by sending a quick email, there are even third-party companies who evaluate these like Windo.
Planet Tracker advises to be aware of companies spotlighting minor green features to distract from larger environmental harms. For example, oil companies may promote renewable projects on their websites while their core business remains fossil fuels. To dig deeper, check independent sources or ask directly if the company earns revenue from fossil fuel-related industries.
Transparent companies often highlight both their successes and areas for improvement. A great example is Oatly, who publish candid reports and even created a website to address their mistakes.
Look for Certifications
Certifications can be a good indicator of sustainability if they’re from reputable organisations. Well-known certifications like B Corp require rigorous audits, but not all certifications are equal. Look up lesser-known ones to ensure they’re trustworthy.
Looking at the Money
Finance might not be the first thing you think of when evaluating a company’s sustainability, but where they allocate their money has a big impact.
Companies working with banks that invest in fossil fuels are indirectly supporting unsustainable practices. Divestment refers to withdrawing investments from such industries, and you can often uncover this information in annual reports, ESG disclosures, third-party tools like BankTrack, or press releases about divestment.
Supply Chain
The supply chain is another area where greenwashing can hide. Cheap materials often come at the cost of significant environmental harm or unethical labour practices. A truly sustainable company will acknowledge and address these challenges rather than hiding them.
Supply chain emissions, often referred to as ‘scope 3’ emissions in ESG reports, should be fully tracked, with clear analysis of transportation and energy use.
Takeaways
Spotting greenwashing requires a critical eye and some digging, but the payoff is worth it, you can use this guide to spot greenwashing by looking for data, third-party verification, and transparency about both successes and shortcomings. And remember, if a company seems too good to be true, it probably is.