Greenwashing Analysis: Examining the Gap Between Corporate Environmental Claims and Actual Sustainability Practices

October 11, 2025by Primelegal Team

Abstract

There has been an increase in awareness on the damage human beings have done to the environment, from the rising instances of extreme weather across the planet to the political slugfest this has caused. Corporations recognize the same as well, is what one would be led to believe, by the myriad of products being sold by them all proclaiming how environmentally friendly they are. Words like “sustainable development”, “ eco-friendly”, “ reduction in emissions”, “ net zero by 2050” and so on are trumpeted with relentless intensity, proclaiming to their eagle eyed and sharp eared listeners “ We care about the environment and you should buy our products as a result, because you care about the environment and it is a decision any environmentally conscious person would do” . However, beneath the glitteringly green façade, lies a deeper, perhaps more troubling question , how true is the noise paraded to us? The answer directs us to the topic of this article, greenwashing. This paper looks into what greenwashing is and with reference to various sources on the internet, the ways to spot greenwashing and how to call out corporations for the green lie which they have been blasting in the media.

Introduction

Corporations declare with much pomp and fanfare that they too are committed to reducing carbon emissions and to contribute to the “war with climate change”. In reality, this is utter balderdash, with companies still resorting to economically harmful methods of production – either at a comparatively lower scale, or at the same level. It indicates that the corporate assertions and/or commitments towards the environment are superficial in nature and majorly driven by an existential need for painting them in a favorable light to a public which boycotts a person or a collective of people who do not do what they deem socially correct and acceptable ( much like the same issue which plagues CSR) and in reality, beneath the façade of their products being manufactured in economically friendly ways, has either not met the set target to lower emissions or like in the case of Volkswagen, failed and deceived the public into thinking that they care about the environment, while reality paints a different grim, and largely unchanged story.

Keywords

Greenwashing, Corporations, Environment  

Meaning and history of greenwashing

Greenwashing refers to companies and corporations who falsely claim to be environmentally conscientious players in the industry, while in reality the so called measures they claim to take to mitigate environmental harm are exaggerated or utterly untrue. It was first coined by environmentalist Jay Westerveld in a scathingly critical 1986 essay on how the hotel industry encouraged customers to reuse towels to “save the environment”, while in reality was a cost cutting measure which will increase profit, and to add insult to the injury, no attempt was made by these institutions to actually mitigate the damage they did to the surrounding environment.

Why does greenwashing occur?

According to the official website of the United Nations, humanity is at a critical juncture in its history, as rampant emission of greenhouse gases such as carbon dioxide and methane, has led to global warming, which in turn has triggered an increase in patterns of extreme weather such as storms such as hurricanes, typhoons and cyclones, droughts, floods, wildfires and so on. Unfortunately, according to a study conducted by the University of the Built Environment, London, many businesses would rather risk taking safe yet superficial measures to appease consumer concerns about environment sustainability instead of actually undertaking sustainability programs which can lead to organizational change. Furthermore, there is a lack of accountability on part of businesses to set reasonable declarations, monitoring efforts and delivering as declared. This includes the opaque barrier between businesses and the public. Most greenwashing is nothing but, according to an article published on DNV.in, a lack of transparency and commitment to a sustainable path. This is an obstruction of the reality, by not disclosing the ground reality, by cherry picking on seemingly rosy facts on the sustainability of their business practices. Even if they fail to adhere to their grandiose declarations, the worst they get is a rap on the wrist. There is a critical shortage of a cohesive external watchdog to actually police companies to adhere to a concrete and feasible goal on sustainable development, and they are taking full advantage of it.

Types of greenwashing

Greenwashing is all around us. Like a pathogen, it has mutated into different variants, all causing the same malignant illness. The United Nations lists out the ways in which greenwashing crops up. They are –

  1. Claiming to be on track to shelve polluting emissions to net zero, while in reality any plan in place is either vague and not credible, or there is in the heart of this strategy, no plan to begin with.
  2. Being deliberately vague on the operations of the company or the materials which are used by the company
  3. Using terminologies such as ‘green’, ‘eco-friendly’ and ‘sustainable development’. These ‘green jargons’ lack standardized definitions and can be easily used in the wrong sense.
  4. Emphasizing one single environmental attribute and ignoring the other likely negative impacts their manufacturing process has had on the local environment around it.
  5. Claiming to avoid illegal and/ or non-standard practices which are irrelevant to the product at hand.
  6. Implying that a minor improvement has a major impact or promoting a product that meets the minimum regulatory requirements as if it is significantly better than the standard.
  7. Communicating the sustainability attributes of a product in isolation of brand activities (and vice versa) – e.g. a garment made from recycled materials that is produced in a high-emitting factory that pollutes the air and nearby waterways.

Notable examples of greenwashing

  1. In 2019, McDonalds introduced paper straws on the premise of saving the environment. Ironically, these paper straws, the replacement of their supposedly environmentally damaging plastic cousins, which take nearly 500 years to decompose in the soil, in a cruel twist of irony, turned out to be non-biodegradable.
  2. Innocent Drinks, in 2022, released a cartoon advertisement on TV, which featured animals singing songs about recycling and fixing the planet. This is ironic, as Innocent Drinks is owned by Coca Cola, which is the worst plastic polluter in the world. This is another notable if not darkly funny example of greenwashing – a polluter trying to appeal to the masses by coming as a green crusader.
  3. Fast fashion companies are also heavy polluters. A notable example is Shein, which in 2025, landed in hot water by claiming to follow environmentally sustainable practices, through social media taglines such #SHEINTHEKNOW, evoluSHEIN and its Social Responsibility webpages. This whole shtick was vague, generic and overly emphatic, ringing the proverbial green alarm bell, especially, when they actually reported an increase in emission rates between 2023 and 2024.

Legal Implications

It includes penalties, fines, and possible imprisonment under the Consumer Protection Act, 2019, which treats greenwashing as an unfair trade practice. Offenders may face imprisonment up to two years and fines up to ₹10 lakh for first-time violations, with harsher penalties for repeat offenses. Regulatory authorities like the Central Consumer Protection Authority (CCPA) can impose cease-and-desist orders and require companies to withdraw or correct misleading environmental claims. Additionally, companies may face scrutiny and penalties under SEBI’s ESG disclosure requirements, the Companies Act for misleading financial statements, the Competition Act for unfair trade practices, and Advertising Standards Council of India (ASCI) guidelines for deceptive advertisements.

Conclusion 

Greenwashing represents the troubling disconnect between corporate sustainability claims and the actual environmental impact of business practices. While corporations loudly proclaim their commitment to eco-friendly and sustainable development, many fall short of these promises, using green messaging as a marketing facade rather than engaging in substantive change.

 

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WRITTEN BY S. KAVIYA SRI