Claire Xu
“Like really clean diesel”—in 2009, Volkswagen (VW) launched a marketing campaign that claimed their diesel vehicles reduced nitrogen oxide emissions by 90%. According to Kelley Blue Book analyst Rebecca Lindland, these “environmentally conscious” cars appealed to consumer pathos. “You felt like you were a good human being,” she said. In reality, VW vehicles released up to 40 times the permitted nitrogen oxide pollutant levels. To circumvent engine testing, VW had installed software that allowed diesel engines to detect when they were being tested and alter performance to meet emission regulations.
Volkswagen, along with H&M and IKEA, are just some of the many companies under scrutiny for greenwashing—presenting a company or its products as more environmentally friendly than actual—in the last few decades. Greenwashing has become more prevalent as the world has begun to focus on global sustainability. In 2019, H&M launched Conscious, a supposedly “sustainable” and “environmentally friendly” clothing line, despite having no legal definitions for either claim. A 2020 investigation by London-based nonprofit Earthsight also found that IKEA was linked to sourcing wood through illegal logging in protected Siberian forests.
THE REASON FOR THIS CAN BE TRACED BACK TO GREENWASHING: MANY COMPANIES ARE AFRAID OF BEING ACCUSED OF SUCH OR OF NOT DOING ENOUGH.
Greenwashing can have lasting consequences like a tarnished brand image, which has led some companies to turn to green hushing: deliberately underreporting green goals and practices to customers and investors. The concept isn’t new: a 2014 report found that among 31 United Kingdom tourism businesses awarded the Environmental Quality Mark, only 30% of sustainable practices were communicated to customers. Similarly, in Greenview’s 2018 Green Lodging Trends Report, of the 4,544 hotels surveyed, just 55.3% communicated their green practices on their website. More recently, in South Pole’s 2022 Net Zero and Beyond report, where around 1200 global sustainability executives were surveyed, 23% decided not to publicize their progress toward net zero emissions. Why do companies set science-based targets (SBTs) but do not report beyond what is mandatory? The answer can be traced back to greenwashing: Many companies are afraid of being accused of falsely marketing themselves as environmentally conscious, or of not doing enough to be sustainable. By keeping quiet, they can go unnoticed by journalists, activists, and academia. Moreover, some businesses worry customers may see sustainable products as of lower quality than normal ones. They also do not want to lose specific types of customers: For instance, the Harvard Business Review noted that some men associate being eco-friendly with femininity. Furthermore, those who are more politically conservative may view sustainability as a liberal political ideal.
BUSINESSES LOSE THE CHANCE TO ATTRACT INVESTORS INTERESTED IN SUSTAINABLE COMPANIES, LEAD THE WAY IN THEIR INDUSTRIES TOWARDS GREENER PRACTICES, AND ENCOURAGE EACH OTHER TO REACH THEIR TARGETS
As climate change pushes the world to strive for sustainability, the withholding of green goals and practices is problematic. For one, customers cannot make informed decisions when purchasing products. Moreover, businesses lose the chance to attract investors interested in sustainable companies, lead the way in their industries towards greener practices, and encourage each other to reach their targets. Greenwashing also hinders accurate assessments of a business’s progress toward its green goals.
With this in mind, it is crucial to note that small businesses often do not have the time or funds to obtain certificates affirming that their practices are sustainable. Since scrutiny and backlash toward failed sustainability attempts can be severe, some companies may also be scared to even try due to the associated risks.
GETTING BUSINESSES TO JOIN THE FIGHT AGAINST CLIMATE CHANGE MAY BE DIFFICULT, BUT IT IS IMPERATIVE AND DOABLE.
Changes do not happen overnight. We must hold companies responsible for their actions while simultaneously understanding that their progress will likely be gradual. For Volkswagen: since paying over $30 billion in fines and settlements in the diesel scandal, the company has moved away from the diesel market and turned toward electric vehicles under a new chief executive officer. Businesses can take steps to communicate their sustainability without turning away consumers by highlighting their product’s positive attributes to counterbalance negative associations with eco-friendly products. A study has also found that providing green electricity as the default instead of normal, “gray” electricity made more people choose the sustainable option—meaning that companies can encourage pro-environmental behavior by giving consumers small nudges in the right direction. Getting businesses to join the fight against climate change may be difficult, but it is imperative and doable.
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