Greenwashed Out
THE CLIMATE CONUNDRUM
Consumers can’t tackle the climate crisis alone. They’ve been taking steps to live sustainably but also question whether companies and governments are using all possible resources to make a true difference.
People are Greenwashed Out. They know their eco-friendly choices help to an extent, but real change needs to be a collective effort. So, consumers are pushing the responsibility back on businesses.
All organisations must take ownership of their carbon footprint and prove their positive impact.
Eco exhaustion
Green fatigue is sinking in. Consumers have made noticeable strides in recent years to protect the planet. In fact, more than 60% of consumers tried to have a positive impact on the environment in 2023. But climate catastrophes haven’t slowed down. Extreme weather events like intense wildfires, severe droughts and devastating floods are wreaking havoc on communities around the world. And as temperatures continue to rise, so does consumer scepticism.
Consumers realise that their individual contributions can only do so much. They’re tuning out messages that place the burden on their behaviour. Instead, they want organisations to step up and show proof of their eco pledges. People who are Greenwashed Out won’t accept empty promises or false narratives.
Environmental concerns remain top of mind. Some consumers will keep making sustainable choices within their means, whilst others who feel discouraged might not make as much of an effort. Barriers like affordability and distrust are big challenges preventing further action.
of consumers tried to have a positive impact on the environment through their everyday actions in 2023
Source: Euromonitor International Voice of the Consumer: Sustainability Survey, fielded January/February 2023 (n=40,691)
of consumers felt like they were personally contributing to climate change in 2023
Source: Euromonitor International Voice of the Consumer: Sustainability Survey, fielded January/February 2023 (n=40,691)
Environmental Actions
% of consumers that took these actions in 2022 and 2023
Source: Euromonitor International Voice of the Consumer: Sustainability Survey, fielded January/February 2023 (n=40,691)
Accountable and affordable
It’s no secret—corporations have made misleading claims or underdelivered on sustainability initiatives for years. But Greenwashed Out consumers see right through these deceptive antics.
Emission reduction should be a focus area to cut through the noise. Offsetting isn’t enough, but accurately mapping out your carbon footprint is complex. Businesses need to measure direct and indirect emissions, including upstream and downstream value chains. That’s not only challenging to track but also extensively regulated.
The good news: investing in long-term energy-efficient measures can be a cost-cutting strategy. Partnering with the right suppliers helps you avoid future penalties, and eco-friendly operations could have an immediate effect on your bottom line.
Complete transparency is also critical here. You need to share concrete evidence of responsible business practices and validate progress. At the same time, demonstrate sustainable impact with specifics. If your product is made from recyclable materials, for example, put the amount of waste that was saved in production on the packaging. That way, shoppers immediately know how their purchase decision or behaviour makes a difference.
Affordability is another sticking point—especially in strained economic conditions. Sustainable items often carry a higher price point. Manufacturers need to democratise these options for shoppers.
of professionals said their company plans to invest in certifications to avoid greenwashing in the next five years
Source: Euromonitor International Voice of the Industry: Sustainability Survey, fielded February 2023 (n=713)
Sustainable Product Development Plans
% of professionals who said their company plans to develop products with these sustainability claims
Environmentally friendly claims
Sustainable packaging claims
Low-carbon or carbon-neutral claims
Sustainable sourcing claims
Water-saving or waterless claims
Zero-waste claims
Source: Euromonitor International Voice of the Industry: Sustainability Survey, fielded February 2023 (n=573)
GREENWASHED OUT Trend applications to consider
Chloé
French fashion house Chloé introduced the Vertical project in its spring/summer 2023 collection. Products from this line carry a digital ID on the tag in the form of a QR code that customers scan for traceability and authentication details.
Chloé also partnered with luxury resale platform Vestiaire Collective on an exclusive circular programme for these items. Chloé earns a proportion of profit from each verified item sold, which opens a revenue stream into the secondhand market for the company.
Provenance
Provenance is a UK-based platform that validates sustainability claims to fight greenwashing. Consumers can use the site to search for beauty and health brands with verified credentials.
Stricter Regulations
Governments are cracking down on corporate greenwashing.
South Korea introduced a draft law that would fine companies for falsely advertising environmental impact. And the EU issued legislation to prohibit the use of claims like climate-neutral and environmentally friendly without proper accreditation.
GREENWASHED OUT Three tactics for 2024
Develop strategic partnerships across your supply chain to reduce carbon footprint and embrace the circular economy.
Be forthright and factual—back-up claims with tangible proof and help your customers understand their impact.
Reinvest revenue or re-benchmark profit margins to manufacture products that are both affordable and sustainable.
