New report reveals how major corporations are misleading public: 'Now under growing scrutiny'

What companies are saying about sustainability and what they are doing is not always in alignment.

What's happening?

A Capgemini Research Institute study, summarized by edie, has found a gap between corporations' plans to invest in environmental actions and sustainability and the actual development of transition plans.

Rory Burghes, head of Sustainable Futures at Capgemini, explained, per the publication, "What's now under growing scrutiny is the real impact and credibility of those commitments, as the gap in preparedness becomes more apparent and consumer concerns about greenwashing continue to rise."

The report found that while 82% of companies have plans to invest in environmental sustainability, only 21% have developed detailed plans to do so. 

Greenwashing is the practice when a business makes their products or policies — or both — appear more environmentally friendly than they actually are.

A corporation may launch an ad campaign touting the environmentally friendly materials used in their products, while the packaging is excessive and non-biodegradable, for example. 

Why is greenwashing concerning?

The practice of greenwashing is misleading consumers who are trying their best to make environmentally friendly choices and support businesses that truly prioritize sustainability.

It is critical to be aware of greenwashing so that we can make informed decisions. Doing research on actual business practices beyond what a company is saying is important.

One clue that greenwashing may be at play is vague language use. The terms "eco-friendly," and "natural" are often unregulated. 

If a company claims its products contain "up to 99.9% recycled materials," for instance, it does not necessarily mean the product is made from 99.9% recycled materials. It means it may contain anywhere between 0% and 99.9% of recycled materials. By glossing over the details, consumers may be easily misled.

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What's being done about greenwashing?

We can raise our awareness of greenwashing by educating ourselves about the practice and doing research so we can support companies that are truly taking steps to protect the environment.

By choosing to spend our money with environmentally responsible companies, we show them that we see beyond the smoke and mirrors. When businesses realize that making efforts to take care of the environment will benefit their bottom line, it may encourage them to continue their efforts and also encourage other companies to follow suit.

"Business leaders still see sustainability as a core driver of business value," said Cyril Garcia, Capgemini's head of global sustainability services and corporate responsibility. "This will not only build true resilience, but also fuel innovation and competitiveness."

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