Avoid greenwashing and communicate your sustainable practices in a transparent way

Sustainability is a key practice in which any company should be involved. And, it should not only be used as a marketing strategy, but as a motivation to improve and collaborate for the benefit of the environment. However, many businesses misuse the positive image of sustainability, giving a misleading perception to their customers. This is known as greenwashing. Below, we share explanations and tips to prevent your SME from falling into these bad practices.

The importance of sustainability in today's market

Today's market is constantly changing and, in recent years, sustainability has become one of the top priorities. The reasons for this are not only ethical, but also involve consumers and government:

1. Consumers: they are increasingly aware of their environmental footprint. A study by One Pull reveals that 81% of Spanish consumers want their purchases to be environmentally friendly, although 70% admit to being confused by sustainability labelling.

2. Public institutions: In recent years, they have created environmental standards and regulations to ensure that companies have action plans linked to sustainability. In particular, the European Union penalises:

• Early obsolescence.

• Misleading environmental claims.

• Social features of products or sustainability labels that are not transparent.

What is greenwashing and what are its consequences?

Greenwashing is a communication strategy that seeks to establish the reputation of a company and its products as environmentally friendly, even if they have no actions or evidence to support this claim. The aim of this practice is to capture a clientele concerned about the environment, and to take advantage of their interest through misleading information.

Its consequences go beyond the morality of the company and its reputation, which is not only damaged, but also hinders the ecological transition in general. It will also be affected in a legal scenario with the following penalties:

• Fines of at least 4% of turnover, or in case no turnover information is available, up to EUR 2 million.

• Exclusion from public tenders.

Top tips for transparent communication of your commitment to sustainability:

• Actions, not just promises: the commitment should be reflected in the daily operations and values of the company, not just in messages. Implementing verifiable environmental policies aligned with measurable targets is key to avoid misleading claims.

Without tangible evidence, any statement runs the risk of being perceived as an attempt at greenwashing.

• Avoid ambiguity: Try not to use vague terms such as ‘natural’ or ‘eco-friendly’, but use a number to specify. For example, if a product is made from recycled materials, mention what percentage of the material is actually recycled.

• Omitting details: It is not only false claims that are considered greenwashing, but omitting details as well. Avoiding to explain why a product is ‘bio’ is considered a form of misinformation. More complete information helps your customers to buy in a more honest way.

• Monitor compliance: If you decide to create a sustainability improvement plan for your company, don't forget to measure your results! This way, you can inform your users about your company's progress in an honest way.

• Report under international standards: it is important to report your company's environmental impact under recognised frameworks such as the UN Global Compact Progress Report, or in a European framework such as the ESRS (European Sustainability Reporting Standards), or even on a global level the GRI Standards (Global Reporting Initiative).

These guidelines will help you communicate your sustainability practices effectively and without greenwashing. Let's work together to take care of our planet!

In addition, in our sustainability content, you can find best practices and information on how these actions can help your company.