What is greenwashing?

Greenwashing is when a company’s marketing materials highlight environmental efforts that don’t reflect the full reality of its operation. This might involve using vague, eco-friendly terms, overstating the impact of initiatives, fabricating initiatives entirely or not disclosing an environmental footprint.

While generally well-intentioned, greenwashing ultimately misleads the public and employees who value sustainability. To maintain a strong, future-forward employer brand, it’s essential that you’re aware of this potential pitfall.

Examples of greenwashing and how to avoid it

Let’s look at some examples of greenwashing in different industries. 

Fashion

Greenwashing example: A clothing line claims to be eco-conscious while the vast majority of its production remains unsustainable or makes vague statements, such as “made with recycled materials,” without specifying the percentages of overall impact.

How to avoid it: Be transparent about the percentage of recycled materials used in each garment. Set measurable goals for increasing sustainable production across the board, and use these in your marketing communications. Consider highlighting your use of ethical sourcing and labor practices alongside environmental initiatives, if appropriate.

Restaurants

Greenwashing example: Promoting the use of takeout containers labeled as compostable or eco-friendly when they aren’t actually accepted by local waste facilities or require specialized composting that’s unavailable to most customers.

How to avoid it: Avoid misleading “green” marketing. Misrepresenting the environmental impact of disposable packaging is more harmful than recognizing its limitations. Honesty is key to building trust with sustainability-minded employees and customers.

Technology

Greenwashing example: Exaggerating how energy-efficient your products are without acknowledging e-waste issues.

How to avoid it: Partner with reputable e-waste recycling programs, and promote these to your customers. You can also prioritize durability in your product line and be transparent regarding supply chains. 

Finance

Greenwashing example: Creating investment funds labeled as ESG (environmental, social and governance) that include companies with questionable environmental and social track records.

How to avoid it: Employ rigorous screening processes and third-party verification for ESG funds. Provide clear, detailed breakdowns of holdings and reasoning behind investment choices. 

How greenwashing can harm your employer brand 

Greenwashing might seem like a harmless way to enhance your company’s image, but the consequences for your employer brand can be significant. Here’s a breakdown of why it’s a risky strategy:

• It affects trust. Authenticity is the cornerstone of a strong brand. When employees, job seekers or the public discover that your sustainability claims are misleading, they may lose trust. This lack of trust can spread quickly in today’s social media driven world, potentially tarnishing your reputation.
• It demoralizes employees. Many employees are eager to work for companies that make a positive impact on the world. Greenwashing capitalizes on this without delivering on your promises. Employees who genuinely care about sustainability may feel disappointed or even betrayed, impacting morale and overall productivity.
• It diminishes your competitive edge. Prospective and current employees are becoming increasingly selective about where they work and how their employers present their brand publically, especially when it comes to sustainability claims. If your competitors offer more genuine sustainability, greenwashing makes you appear less attractive and could cost you valuable hires.
• It puts you in damage control mode: If the greenwashing becomes public knowledge, your company might face backlash or even legal consequences. This diverts resources and focus away from your core mission and onto crisis management. Additionally, negative publicity affects your employer brand, making it potentially harder to attract candidates.
• It can mean missed opportunities for genuine progress. The energy and resources spent on greenwashing could be redirected toward real sustainability initiatives. These authentic efforts benefit the environment and enhance your brand reputation. Focusing on taking genuine actions toward sustainability creates a win-win situation.

Why employees care about sustainability

Here’s a breakdown of why employees increasingly care about sustainability:

• Personal values. Today’s workforce, deeply value environmental and social responsibility. They want to align their work with their personal beliefs and contribute to a better future for the planet.
• Long-term thinking. Employees understand that climate change and environmental degradation pose significant threats to their future and the world they will leave for future generations. They want to work for companies that are actively addressing these challenges, not contributing to the problem.
• Pride and purpose. A company’s commitment to sustainability gives employees a sense of pride in where they work. It translates into feeling like they’re a part of something bigger than themselves—something actively making a positive difference.
• Quality of life. Sustainability is about social responsibility as much as it’s about the environment. Employees care about fair labor practices, resource conservation and building a more equitable world. They want to work for companies that share these values.

The value of real sustainability for your company

Genuine sustainability can improve your company’s financial performance, reputation and overall success. Prioritizing sustainable practices may reduce costs through the efficient use of resources and waste reduction. What’s more, taking a responsible approach appeals to values-driven consumers and investors, enhancing brand loyalty and positioning your business for long-term growth in an increasingly eco-conscious market.

Perhaps most importantly, sustainability attracts and inspires the best talent. Today’s employees seek meaningful work at companies that share their desire to make a positive impact. A true commitment to sustainability positions you as an employer of choice. It fosters a sense of shared purpose among your team, increasing loyalty, productivity and company morale.

Steps to building an authentically sustainable brand

Forward-thinking companies recognize the growing importance of a well-defined and demonstrably authentic sustainability brand. Here are nine steps you can take toward sustainability:

Conduct a thorough sustainability assessment

Begin by evaluating your current environmental impact, social practices and governance structures. This includes aspects such as energy consumption, waste disposal, supply chains and labor practices. Identify strengths and areas for improvement to establish measurable targets and timelines.

Integrate sustainability into your operations

Sustainability should be embedded throughout your business. Take stock of every aspect of your operation, and align them with your sustainability goals.

Prioritize transparency and communication

Avoid vague claims and unsubstantiated buzzwords. Clearly communicate your sustainability journey, including goals, progress and any challenges encountered. This can build trust and credibility with employees, customers and stakeholders.

Seek strategic partnerships

Collaborate with suppliers and community organizations who share your sustainability vision. These partnerships can amplify your impact, provide resources and drive collaborative solutions to environmental and social challenges.

Empower and engage your workforce

Employees are your greatest sustainability advocates. Provide regular training on sustainability initiatives, encourage ownership and celebrate their contributions. 

Make data-driven decisions

Regularly track and analyze metrics related to your environmental and social performance. Use this data to refine your strategy, demonstrate progress and identify areas for further improvement.

Acknowledge and celebrate milestones

Publicly recognizing sustainability achievements boosts employee morale and helps attract like-minded talent. Share success stories, highlighting both individual contributions and the collective effort driving positive change.

Commit to continuous improvement

Sustainability is an ongoing process. Stay informed about best practices, seek feedback from stakeholders and adapt your approach in response to emerging challenges and opportunities.

Communicate your sustainability story

Share your journey in a compelling and authentic way. Highlight the real people behind your initiatives, the positive impact of your efforts and your commitment to building a better future for all.

Authenticity always wins

Building a truly sustainable employer brand requires unwavering commitment to integrating sustainability into the fabric of your business. Follow the steps outlined to establish a genuine track record that resonates with today’s values-driven workforce. Authenticity strengthens your reputation and positions you to attract and retain exceptional candidates.