Insights

7 tips to avoid greenwashing

You’re committed to circularity and want to shout it from the rooftops? Then be careful because greenwashing can be lurking just around the corner! Greenwashing is the misleading of consumers through false or exaggerated environmental claims. Not only can it harm your reputation, but it can also result in fines of up to 4 % of your annual turnover.

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During the Shifting Economy Week that took place last September in Brussels, great emphasis was placed on the importance of transparent communication. Unfortunately, greenwashing is widespread in the European economy. The following 7 tips will give you an insight into the most common mistakes on greenwashing and how to avoid them.

1. Prove your claims

Be careful with claims that create a circular or environment-friendly image that cannot be substantiated. When you call your product “circular”, you must also have the data to back it up. Be as specific as possible and underpin your message with figures. 

Example: instead of saying “Our products are circular” you might say: “Our product contains 70 % recycled plastic and has a life span of 5 years”.

2. Be specific

Vague messages create confusion and are difficult to verify. Be as specific as possible. 

Example: instead of saying “Our sneakers are sustainable”, say “Our sneakers are made of vegetable leather and are manufactured using recycled apple peels from Europe.”

3. Speak out about latent defects

It’s tempting to focus on what is going right but be sure to also address any drawbacks. 

For example, if you sell coffee capsules with recyclable packaging but the coffee itself comes from unsustainable farming, be honest about it and indicate how you plan to remedy this.

4. Be careful with labels

Only use official labels you have effectively obtained. Self-made labels can raise doubts. 

An example of an official label is the European ecolabel but there are plenty of other possibilities.

5. Ensure relevance

Ensure your environmental commitment is relevant to the product youare selling. 

Example: planting trees has little to do with the circular processes of your clothing production. 

So focus on sustainable materials and production methods that genuinely contribute to the circular economyThe circular economy is a restorative and regenerative economy. By maintaining the value of the products, materials and resources in the economy through smart product design, repurposing and/or shared use of products, it reduces the extraction of natural resources by using resources already present in the economy..

6. Be honest

False claims may lead to a loss of consumer trust. 

For example, don’t say the office furniture you rent lasts three times longer if that’s not the case. Or don't claim that your product design only uses recycled plastics if, in reality, the percentage is only 50 %.

7. Don’t conceal any activities

If you’re offering circular products but also have unsustainable activities, you should be transparent about it. 

Example: an investor who only promotes sustainable companies in his portfolio but at the same time invests in fossil fuels should be open about it and have a plan to make his investments more sustainable.

Communicating honestly and transparently about your circular initiatives helps you build stronger customer relationships. You’re allowed to make mistakes but always stay close to the truth and share your plans to become more sustainable in the future. That prevents greenwashing and fosters sustainable growth.

Would you like to know more about the risks and common mistakes linked to greenwashing? Check the website of the FPS Economy and take a look at our guide for good practices with regard to environmental claims. Did you find misleading communication? Report it to the contact point of the FPS Economy.