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How greenwashing can damage your business

by Sam Baldwin

3 April 2024

Learn more about how we can help you make the most of your ESG sustainability strategy, whilst avoiding accusations of greenwashing, reputational risk and legal liability.

Whether it’s bolstering your reputation, giving you greater access to finances, or enhancing your operational efficiency, a strong ESG agenda can bring tangible benefits to your business. However, without proper implementation and expert guidance, you could leave your business open to accusations of greenwashing.

In 2023, instances of greenwashing grew by 35%, according to RepRisk.

This means that more companies than ever are vulnerable to reputational risk, and even potential legal consequences.

 

Avoid reputational risk and legal liability with Ecovis

To learn more about how we can help you make the most of your sustainability strategy, whilst avoiding accusations of greenwashing, get in touch with our team by clicking the button below.

Talk with our ESG experts!

 

What is Greenwashing?

Greenwashing is the practice of making false or exaggerated claims about the environmental benefits of a product or service. Companies will greenwash to make themselves look environmentally responsible and appeal to eco-conscious consumers.

However, if consumers discover these claims are false, it can damage the company’s reputation and put it at risk of legal action.

For example, Nike was recently sued over a line of “sustainable” clothing. The complaint claiming that,

“of the 2,452 Nike ‘Sustainability’ Collection Products…. only 239 products are actually made with any recycled materials.”

The lawsuit also calls for Nike to undertake a “corrective advertising campaign” and reimburse consumers who bought their products in the belief that they were supporting a sustainable brand.

This behaviour is harmful to everyone involved – including the environment, the consumer, and even the company itself.

 

How Can We Help?

Above all, your business should strive for transparency and honesty in its environmental claims and practices.

Here at Ecovis, we can help you reap the rewards of a developed sustainability strategy, whilst keeping you safe from accusations of greenwashing.

To learn more on how we can help your business, check out our ESG services or feel free to get in touch with me today!

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