How to Avoid Greenwashing Claims

You probably already know that there is a growing sentiment among consumers that sustainability matters. Research has shown that 80% of consumers are changing their shopping habits based on social responsibility, inclusiveness, or environmental impact. In fact, 53% of consumers have actually switched brands and given their business to lesser-known companies because they were sustainable. Those numbers are even higher among younger consumers. This has created a clear mission for business owners: become more sustainable, and you will attract customers and foster brand loyalty. 

Yet, at the same time, you may have seen some companies actually criticized for touting their own efforts to improve their environmental impact. They are accused of “greenwashing” and their apparent efforts to help the planet are dismissed. As a business owner, it may seem like a confusing situation. If you don’t do anything about the environment, you face backlash. But if you do it the wrong way, you also face backlash. 

What does the term “greenwashing” really mean and how businesses can avoid this accusation? 

• Greenwashing is a modern term that is used to describe the behavior of certain companies who claim to care about the environment—but who, when you look deeper, are not doing much to improve their sustainability.   

Imagine, for example, a product was advertised as “made with recycled materials,” but further inspection showed it was only made with 1% recycled materials. The claim is technically true but feels misleading. It’s a little white lie with big implications, and it can destroy the customer loyalty you are aiming to enhance.  

Businesses obviously want to be seen in the most positive light possible. So, they may spin or exaggerate their sustainability stories to placate stakeholders or gain eco-conscious customers. But doing so is dangerous. These days, consumers are becoming increasingly savvy. They are aware of the phenomenon of greenwashing and have become a lot more vocal in criticizing businesses who seem to be doing it. Social media can elevate these criticisms and have a real impact on your business. 

How can I avoid greenwashing? 

Don’t brag about goals, brag about accomplishments. “We aim to ethically source our products.” “We plan to reduce our carbon footprint.” These sound like great goals, but if they aren’t accompanied by real changes to move in the right direction, they are empty promises. They’re about as trustworthy as your January 1st promise to start going to the gym.

Don’t talk about your plans to become more sustainable without proof to back it up. Instead of saying you want to reduce your carbon footprint, for example, outline the new practices and technologies you’ve implemented that are directly lowering your emissions. Instead of simply saying you have a goal to become Net Zero by 2035, show the high-efficiency HVAC units and solar panels you’ve installed that are eliminating energy waste.  

When it comes to sustainability, a goal is not an achievement that consumers trust. It’s a great starting place—and you should be proud that your business is taking the environment seriously. But consumers won’t trust your sincerity until you can back it up.  

Avoid exaggerating your efforts. Exaggeration sets you up for failure and disappointment. As with the “made with recycled materials” example above, just because something is technically true doesn’t mean it is honest. Turning off a light when you leave a room doesn’t suddenly make you energy efficient (though it’s a great practice, and the little changes can add up to big savings).  

So, be real with your customers about how much effort you are putting in. Discovering the truth in the fine print can be frustrating, and customer loyalty can be damaged when trust is broken. 

Show the measurable results of your impact. The best way to ensure you aren’t exaggerating or making empty promises it to back up your claims with numbers. If you can not only say you’ve installed energy-saving technologies at your locations, but that so far, you’ve avoided 329 mt of carbon emissions (as one example of many), then no one will be able to deny you are making a real impact.  

That’s why we’ve designed the Budderfly Customer Portal to give our customers data about their energy performance and savings. With real-time updates, you can see how much energy you’ve saved alongside helpful context that adds color to your sustainability stories. See your savings broken down as easy-to-understand equivalencies. That 329 mt of carbon savings we mentioned? That equals 37,052 gallons of gas consumed by a passenger vehicle.  

Learn more about our Customer Portal in this video:  

Greenwashing comes when you don’t have a concrete plan of action and can’t show the results of your green initiatives. Budderfly not only helps businesses take concrete steps towards sustainability, we oversee energy management through planning, procurement, installation, and ongoing management, all with no upfront costs.  

We install innovative technologies that demonstrably reduce energy consumption, optimize usage to minimize waste, lower water usage, generate renewable clean energy, and more. This helps our customers become more eco-friendly while lowering their monthly utility bills. We also help them prove their impact to customers and investors with concrete data from the Customer Portal.  

To learn how we can help your business save money while saving the planet, contact us today.