32 Greenwashing Statistics: Ultimate Compilation

Imagine shopping for groceries and trying to make a quick decision between two brands of laundry detergent. One of them boasts a bright green label with a leaf logo and claims to be eco-friendly and sustainable. The other is just a regular detergent. 

You think to yourself, “Why not do a little good for the planet?” and grab the “green” one without a second thought. But what if that so-called eco-friendly brand you just picked might be engaging in something called greenwashing?

What is Greenwashing?

Greenwashing is when companies make themselves appear more environmentally friendly than they actually are. It’s a façade—a way for businesses to cash in on the growing consumer demand for sustainable and ethical products without genuinely committing to environmentally responsible practices. 

The term itself is a portmanteau of “green,” referring to the environment, and “whitewashing,” which means to gloss over or cover-up.

Companies that greenwash think that it’s a clever marketing strategy. After all, who wouldn’t want to appeal to the eco-conscious consumer? By slapping a few buzzwords and some earthy imagery on their packaging, they can create the illusion of sustainability. It’s a way to charge a premium price and gain customer loyalty. 

But here’s the kicker: behind this eco-friendly mask, these companies might still be engaging in practices that harm the environment. They might be using non-renewable resources, producing excessive waste, or contributing to pollution. They’re banking on the fact that consumers won’t dig deeper.

For consumers, greenwashing can be misleading at best and deceitful at worst. People want to make choices that are good for the planet, and they rely on companies to be honest about their practices. 

When businesses mislead consumers with greenwashing, it breaks trust and makes it harder for genuinely sustainable companies to stand out. It’s like trying to find a needle in a haystack—only the haystack is full of fake needles and you’re trying to find a real one. 

You start to not trust the stack and think that it’s better that you either not engage at all or stop caring about authenticity. The latter is dangerous because it could cause a ripple effect that can negatively impact the environment. 

The consequences of greenwashing are far-reaching. It not only undermines the efforts of consumers trying to make environmentally conscious choices but also hampers genuine sustainability initiatives. 

Why would a consumer trust a company that says they have green practices if almost every other business is spouting the same thing? 

Companies that get away with greenwashing send a message that it’s okay to fake it rather than make meaningful changes. These ideas can slow down the progress needed to address environmental challenges like climate change, deforestation, and pollution. 

In a time where keeping the environment clean and sustainable for future generations is crucial, greenwashing stands as a roadblock for those with truly good intentions.

As a digital marketer, why should you care about these types of practices? In truth, greenwashing damages more than you think. This guide has the numbers to back it all up.

Here are some greenwashing facts you should know to get a better understanding of how prevalent it is worldwide. By the end of it, you should know how serious the issue is and what to avoid when setting up your own marketing campaigns.

Greenwashing Statistics

Greenwashing can happen across various sectors in every industry. Here are some of the greenwashing statistics that you must know about.

Climate-related risks

Here are some of the climate-related statistics that showcase the effects of greenwashing:

1. One in four climate-related ESG risk incidents is connected to greenwashing. (RepRisk)
2. The Banks and Financial Services sectors experienced a 70% rise in climate-related greenwashing incidents over the past year compared to the previous year. (Reuters)
3. One in three public companies involved in greenwashing is also engaged in social washing. (RepRisk)
4. Misleading environmental claims, or greenwashing, account for 25% of climate-related risk incidents. (RepRisk)
5. A small 6% of companies’ corporate sustainability reports are able to fully meet GRI standards. (Gitnux)
6. One of the sectors that are highly guilty of greenwashing is the fashion industry, responsible for 10% of yearly carbon emissions. (Gitnux)

Green claims and labels

Labels are the first thing customers see when they buy a product. However, they could have false claims. Here are the numbers: 

7. In the EU, 40% of green claims lack supporting evidence. (European Union)
8. Over half of all green labels in the EU provide weak or no verification. (European Union)
9. The EU has 230 sustainability labels and 100 green energy labels, each with varying levels of transparency. (European Union)
10. 58% of shoppers are skeptical of green product claims. (YouGov)
11. 59% of companies did not have accessible evidence of their claims. (Gitnux)
12. A staggering 42% of companies have false or exaggerated claims. (Gitnux)
13. As many as 95% of products on the market claiming to be “green” contain some form of greenwashing. (Gitnux)
14. Almost half of packaging sold as “biodegradable” does not meet industry standards. (Gitnux)
15. 59% of leading European fashion brands have misleading green claims. (Zippia)

Consumer perception and impact

How a customer perceives a company affects whether they will buy their products or not. However, greenwashing can affect how consumers see a company. Some of the statistics regarding these perceptions are:

16. 60% of consumers view social media companies as the worst greenwashing offenders. (Kantar)
17. Globally, 52% of people report seeing or hearing false or misleading information about brands’ sustainable actions. (Kantar)
18. 67% of global consumers worry that brands engage in social issues purely for commercial reasons. (Kantar)
19. Just 36% of global consumers believe brands are offering meaningful solutions to environmental and social issues. (Kantar)
20. 57% of global consumers find it very difficult to determine which products are ethically or environmentally good or bad. (Kantar)
21. Only 40% of consumers think brands genuinely care about environmental and social issues. (Kantar)
22. 81% of customers in Australia support companies that clearly demonstrate their commitment to green practices. (EcoVoice)
23. Greenwashing comes in second as one of the most concerning issues for environmentally conscious consumers. (Gitnux)
24. As many as 78% of consumers believe that the law should require companies to substantiate their claims. (Gitnux)
25. Companies that consumers believe to be greenwashing experience a 1.32% drop in customer satisfaction. (Zippia)

Company practices

There are companies that are honest with their initiatives. However, there are also a good number that aren’t honest about their practices. Here are some of the statistics regarding company behaviors and greenwashing:

26. 68% of US executives admit to using greenwashing tactics. (Fast Company)
27. Worldwide, the figure is around 58%. (Fast Company)
28. Only 17% of companies admit that they use data from tools to optimize their green practices. (Fast Company)
29. Companies that sell fossil fuels spend up to $1 billion every year on greenwashing campaigns. (Gitnux)
30. Only 10% of businesses in the world have credible sustainability practices backed by science. (Gitnux)
31. About 43% of employees believe the company they work for is greenwashing. (Zippia)
32. Only 36% of businesses have gone to lengths to measure how effective their sustainability practices are. (Zippia)

Greenwashing No More

Greenwashing has become a major issue, affecting not just corporate reputations but also consumer trust and market dynamics. It’s prevalent across various sectors, with many companies making unsupported or misleading environmental claims. 

This deceptive practice undermines genuine sustainability efforts and confuses consumers who are trying to make ethical choices.

Many people feel misled by green claims and find it difficult to distinguish between genuinely sustainable products and those that are simply marketed as such. This skepticism leads to a significant trust gap, where consumers doubt the authenticity of brands’ environmental commitments. 

The consequences for businesses are severe—while there’s a chance that having sustainable practices gain consumer trust, greenwashing can negatively affect your company, and risk losing your customer base and damaging your reputation.

Regulations are evolving in response to these issues, with stricter guidelines and potential penalties for false environmental claims. However, enforcement remains inconsistent, making it crucial for businesses to prioritize transparency and honesty in their marketing efforts.

For digital marketers, the message is clear: building trust through genuine and transparent practices is vital. Greenwashing might offer short-term benefits, but it ultimately harms brand credibility and consumer loyalty. 

To create an authentic marketing strategy and prevent greenwashing in the Philippines, you may need professional guidance. 

Spiralytics is here to help. As a digital marketing agency in the Philippines, we strive to keep your campaigns clean and honest. Our experts are ready to assist you in building a trustworthy and genuine brand.

Contact us today for more information.