Recognising greenwashing: a guide for businesses
Direct answer
Greenwashing is presenting a product, service or company as greener or more sustainable than it actually is. You recognise greenwashing by vague or absolute terms such as climate neutral, green or eco without evidence, by claims that lean on offsetting instead of real reduction, and by the absence of proof or a verifiable label.
- Clear definition
- Data-driven assessment
- Risks and opportunities visible
- Practical next steps
Recognising greenwashing: scattered information versus Energy Intelligence
Almost every product now presents itself as green, which makes choosing hard. The European Commission found that 53 percent of environmental claims are vague, misleading or unfounded, and that 40 percent had no supporting evidence at all. For a business owner or buyer who genuinely wants to become more sustainable that is a problem: you want to know which supplier or service is really better, and which one only talks green. Recognising greenwashing helps you tell those two apart.
- Vague or absolute terms such as sustainable, climate neutral or environmentally friendly are, according to the Dutch regulator ACM, quickly misleading when concrete, verifiable evidence is missing.
- A claim that leans mainly on carbon offsetting rather than demonstrable reduction is a classic signal; the EU bans neutrality claims based solely on offsetting.
- Reliable communication states what, how much and against what, points to evidence or an independent label, and does not cherry-pick one good aspect.
Insight
Traditional approach
Information is scattered across portals, documents, invoices or separate spreadsheets.
Modern approach
Data, context and interpretation are brought together into a clear decision picture.
Decision-making
Traditional approach
Choices are made based on averages, assumptions or occasional analyses.
Modern approach
Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.
Follow-up
Traditional approach
Actions often stay non-committal or disappear into separate reports.
Modern approach
Follow-up actions, monitoring and reporting are linked to the same energy data.
How do you recognise greenwashing?
Greenwashing almost always relies on the same handful of tricks. Watch the language first: vague or absolute words like green, eco, sustainable or climate neutral sound good but say nothing without figures. The Dutch regulator ACM calls such terms too vague and therefore quickly misleading. Then watch the evidence: if a verifiable figure, a baseline year or a source is missing, there is usually no proof. A third signal is cherry-picking, where one good aspect is enlarged while the rest of the chain stays out of view. Imagery misleads too: green leaves, a blue sky or vague label logos suggest a sustainability that the claim itself does not deliver.
- Vague or absolute terms without figures, baseline year or source.
- Claims that lean on offsetting instead of demonstrable reduction.
- Cherry-picking: enlarging one good aspect and hiding the rest.
- No verifiable proof or no independent label.
- Suggestive imagery that promises more than the text supports.
Which rules apply?
Greenwashing is not just untidy, it is increasingly prohibited. The Dutch regulator ACM has renewed its Guidance on Sustainability Claims with five rules of thumb: use correct, clear, specific and complete claims, substantiate them with facts and keep them current, make fair comparisons, describe future ambitions concretely and measurably, and make sure visual claims and labels help rather than confuse. At European level, the Empowering Consumers Directive bans generic environmental claims without recognised, excellent performance, and bans neutrality claims that rest solely on offsetting. The proposed Green Claims Directive further requires explicit claims to be substantiated in advance and checked by an independent verifier.
- ACM: five rules of thumb for correct, substantiated and current sustainability claims.
- The first two rules apply to every claim; three to five to comparisons, ambitions and visual claims.
- The EU Empowering Consumers Directive bans unfounded and generic environmental claims.
- Neutrality claims resting solely on carbon offsetting are banned in the EU.
How do you communicate honestly yourself?
Honest communication starts with being specific. Do not say something is green, but state what is better about it, how much better, and against what you measure that. A claim such as a share of recycled material with a concrete percentage, or an emissions drop with a baseline year, is verifiable and defensible. Substantiate every claim with evidence you can show on request, and keep that evidence current. Preferably point to an independent label rather than a self-made logo. Make comparisons fair, so against a realistic alternative and not against a deliberately poor example. And avoid dressing up a small plus point while the largest part of the footprint stays unmentioned.
- Be specific: what is better, how much, and measured against what.
- Substantiate with evidence you can show and keep current.
- Point to an independent label, not a self-made logo.
- Compare fairly and avoid cherry-picking one plus point.
Curious what this looks like with your own data?
In a no-obligation call, a specialist looks at your meters, sites and energy questions with you. Response within one business day.
Search the knowledge base
Find the answer to your question.
Search using your own words. Abbreviations and spelling variants are recognised, so EMS also finds the articles on energy management systems.
Topic
