Green Or Greenwashed? 5 Ways To Spot Truly Sustainable Products

In an era where sustainability is a major selling point, consumers are increasingly drawn to brands that claim to be eco-friendly. However, not all green claims are genuine to show that they are actually sustainable. Hence the rise of greenwashing, defined by Merriam Webster as the act or practice of making a product, policy, activity, etc. appear to be more environmentally friendly or less environmentally damaging than it really is. In other words, it is a deceptive marketing practice where companies exaggerate or falsely claim sustainability credentials. According to the World Economic Forum, greenwashing has become a critical issue in consumer markets, misleading buyers and hindering genuine environmental progress. The use of vague terminology is one of the most common greenwashing tactics. Companies often label products as “natural,” “green,” or “eco-friendly” without regulatory oversight or scientific backing.

The Rise of Greenwashing in Sustainable Marketing

A comprehensive investigation by the European Commission published in 2021 examined 344 questionable environmental claims which revealed significant gaps in transparency and substantiation. More than half of traders failed to provide adequate information for consumers to assess claim accuracy, while 37% used vague terms like “sustainable” and “eco-friendly” without concrete evidence. Alarmingly, in 42% of cases, authorities suspected misleading claims that could constitute unfair commercial practices, highlighting the urgent need for stricter regulations on greenwashing.

In the U.S., the Federal Trade Commission has identified a rise in misleading environmental marketing claims, prompting increased scrutiny. In 2022, the FTC launched a review of its Green Guides to ensure environmental marketing claims remain transparent and reliable amid growing consumer demand for sustainability. FTC seeks to enhance consumer trust and prevent misleading greenwashing practices, reinforcing accountability in environmental advertising.

According to Mori Hamada & Matsumoto, a law firms headquartered in Tokyo, in 2024, Japan strengthened its regulatory framework to combat misleading environmental claims. Amendments to the Unjustifiable Premiums Act, introduced stricter penalties and a “commitment procedure” to enhance enforcement by the Consumer Affairs Agency. These changes, alongside provisions allowed contract rescission for deceptive sustainability claims, underscore the growing legal risks for businesses falsely marketing products as “eco-friendly” or “carbon neutral.”

Major corporations have faced significant backlash for misleading environmental claims, highlighting the growing scrutiny of greenwashing. Volkswagen’s 2015 “clean diesel” scandal, which involved software manipulation to cheat emissions tests, resulted in a $14.7 billion settlement. In 2023, Shell’s climate strategy came under legal fire for failing to meet climate targets, exposing a gap between its sustainability rhetoric and actual practices. More recently, German confectionery brand Katjes was found guilty of deceptive marketing in 2024 for falsely advertising its products as “climate neutral,” prompting its environmental partner to abandon the label altogether. The use of vague terminology is one of the most common greenwashing tactics. Companies often label products as “natural,” “green,” or “eco-friendly” without regulatory oversight or scientific backing.

Unmasking False Certifications: A Path to Genuine Sustainable Practices

False certifications are another deceptive strategy, with brands displaying self-created eco-labels that appear official but lack third-party verification. In the U.S., the Federal Trade Commission has cracked down on deceptive sustainability labels used by major retailers such as Walmart and Kohl’s, reinforcing the need for genuine certifications. According to the FTC, in addition to imposing combined penalties totaling $5.5 million, the proposed settlements with Kohl’s and Walmart include injunctive provisions that will change how the companies make textile representations and bamboo-related environmental claims in the future.

According to a 2023 article in the Guardian, a majority of the top carbon offset projects, which have sold the most credits, are likely ineffective in reducing emissions. Among the 50 most popular projects, 78% were categorized as “likely junk” due to fundamental failings such as overestimated climate benefits or projects that would have occurred anyway, such as large hydroelectric dams. Experts argue that effective carbon credits should be tied to new, permanent emission reductions, but many projects simply allow polluters to continue with business as usual. The findings highlight systemic flaws in the voluntary carbon market, with carbon credits from these projects contributing little to meaningful climate action.

How Consumers Can Identify Truly Sustainable Products

In a world where sustainability has become a major selling point, it can be challenging for consumers to differentiate between genuine eco-friendly products and those merely marketed as such. To make informed choices, it’s crucial to understand the key indicators of truly sustainable products and how to spot potential greenwashing tactics. Here’s how consumers can identify products that genuinely align with their environmental values. A product may be made from recycled materials, but if its manufacturing process is highly polluting, its net benefit is questionable,

1. Look for Third-party Certifications: To avoid greenwashing, seek eco-labels from trusted organizations like Fair Trade, the Forest Stewardship Council, Energy Star, and the EU Ecolabel. These certifications are backed by independent verification, ensuring the product meets rigorous environmental standards.
2. Demand Transparency: Authentic sustainable brands are transparent about their practices. They share vital details about their supply chains, material sources, and environmental impacts. This transparency helps consumers make informed decisions about a company’s commitment to sustainability. For example, Euro News exposed major fashion brand Zara for misleading customers about the sustainability of its clothing lines, highlighting the importance of transparency in sustainability claims.
3. Be Wary of Vague Claims: Avoid products that make broad claims like “green” or “natural” without providing specifics or verified certifications. These vague statements often serve as marketing gimmicks, making it difficult to assess a product’s real environmental impact.
4. Research the Brand’s History: Investigate a brand’s past sustainability practices. A history of inconsistent or misleading claims can reveal whether a company is genuinely committed to sustainability. Zara’s misleading sustainability claims, as reported by Euro News, are an example of why research is crucial before trusting a brand’s green credentials.
5. Assess the Entire Product Lifecycle: Consider a product’s full lifecycle, from raw material sourcing to its manufacturing process. Even if a product is made from recycled materials, its environmental benefits can be undermined if the manufacturing process is highly polluting. Reports by The Guardian have shown how some eco-labeled products contribute to environmental harm, especially when it affects the vulnerable societies.

The Role of Policy in Strengthening Sustainable Standards

The role of policy in strengthening sustainable standards is crucial in combating greenwashing and ensuring the credibility of sustainability claims and battling climate change. Governments and regulatory bodies must establish clear, enforceable guidelines for businesses to follow when making environmental claims, particularly in areas such as carbon offsetting, renewable energy, and waste management. Setting robust standards, requiring third-party verifications, and ensuring transparency in reporting, policies can create a level playing field and hold companies accountable for their environmental impact. Furthermore, policies that incentivize true innovation in sustainable technologies, while penalizing deceptive practices, will foster long-term environmental stewardship and reduce the risk of misleading claims that ultimately undermine public trust in sustainability efforts.

Governments worldwide are implementing stricter policies to combat greenwashing. The European Union’s Green Claims Directive aims to standardize sustainability claims across industries, ensuring accountability. The U.S. FTC’s Green Guides provide updated guidelines for eco-marketing, addressing misleading claims. In Asia, China has introduced tougher penalties for false sustainability claims in manufacturing according to the China Ministry of Ecology and Environment. While African nations like South Africa and Kenya are strengthening regulations on corporate sustainability reporting to ensure transparency. In Australia, the Australian Competition and Consumer Commission has launched investigations into misleading environmental claims in the fashion and food industries .

Greenwashing not only misleads consumers but also undermines genuine environmental progress. To foster a truly sustainable marketplace, businesses must prioritize authentic sustainability efforts over misleading marketing. As awareness grows, companies engaging in greenwashing will face greater scrutiny, while those genuinely committed to sustainability will earn consumer trust. Authentic sustainability is not just a trend—it is an imperative for the planet’s future.