Greenwashing is when a company or leader makes a claim of positive environmental progress when, in fact, the claim is false or misleading and their product, service, or activity actually harms the environment. It’s become a real issue in a global commercial climate where companies scramble to compete for the last penny and environmentally-harmful manufacturing activities are cheaper than ethical ones.

Greenwashing is not only unethical and dismal, it is dangerous. Consumers who buy products from seemingly ethical companies unknowingly contribute to the profit of destroy-the-earth-at-all-costs liars. (Yes, I call them out.) These practices undermine our ability to accurately and effectively make decisions as consumers… and it kills our trust in the labeling and marketing process. 

Is a label that claims its products are organic actually being deceptive and using non-organic ingredients? Is there child labor being forced at the manufacturing plant? If the final product is not tested on animals, does that mean individual ingredients ARE? Does the transportation or warehousing of the final product negate the good ingredients?

These are questions that must be asked in all industries, from fashion, clothing and textiles, chocolates, to health and wellness supplements, to foods and beverages, to electronics and utilities. (And carbon offsetting… there’s a falsehood that tempts leaders in all businesses, however offsets don’t accomplish what they promise.)

Examples of Greenwashing

Greenwashing happens more often than we'd imagine. The five examples below are of companies that have been accused or cited for misleading claims about sustainability and falsely labeling products as eco-friendly. These processes even affect B Corps, and this list highlights the importance of truth and transparency for all businesses. (See my online course Herbal Business Compliance for a deeper dive into labeling, ethics, and transparency.)

1. Innocent Drinks (Owned by Coca-Cola)
   Innocent promoted itself as eco-friendly despite being under Coca-Cola, a top plastic polluter, and it faced angry consumers in 2022. Innocent's ads depicted environmental messages and cute animals that implied it was a strong advocate for recycling, but critics argued that these marketing scams clashed with the company’s ongoing use of single-use plastic. The UK’s Advertising Standards Authority (ASA) intervened, banning the ads due to their misleading nature​.
2. H&M “Conscious” Collection
   H&M launched its “Conscious” clothing collection claiming to use organic cotton and recycled materials. However, in 2021, the Changing Markets Foundation revealed that 96% of H&M’s sustainability claims in this line were untrue and were terribly misleading. The Norwegian Consumer Authority also criticized H&M for lacking evidence to support its environmental claims, which were primarily marketing tactics (greenwashing) instead of being relevant and accurate sustainability initiatives​.
3. Keurig’s “Recyclable” Coffee Pods
   How anyone could think of Keurig as an environmentally friendly product maker is beyond me. It is inherently wasteful and based on grossly abundant packaging. At one point, Keurig had the nerve to advertise its wildly overproduced single-use coffee pods as recyclable, but in reality, few recycling facilities would accept them due to the difficulty of processing the ridiculous pods. In 2022, Canada’s Competition Bureau fined Keurig $3 million for misleading consumers, and Keurig was forced to walk back its statements and clarify its limited recycling options. This is a strong example of the impact of unsubstantiated recycling claims on consumer trust (and of a company doing the bare minimum to appear "sustainable").
4. Walmart and Kohl’s “Bamboo” Textiles
   The giants Walmart and Kohl’s marketed certain textiles (such as sheets and towels) as being made from eco-friendly bamboo, but this was misleading: the products were made from rayon. Rayon production involves heavy chemicals and is not the sustainable bamboo alternative consumers are greenwashed into believing. The U.S. Federal Trade Commission (FTC) fined both companies $5.5 million in 2022 for violating transparency standards, underscoring how misleading information is easy to pass off as the real thing​.
5. Amazon’s “Aware” Range
   Amazon's "Aware" product line promised sustainability, but it used heavy plastic packaging and utilized lengthy shipping routes. The brand’s “carbon-neutral” claims were criticized as they heavily relied on carbon offsetting (which is a fallacy) without reducing actual emissions. Critics argued that these measures did not meaningfully address Amazon’s incredibly large carbon footprint, which increased by 40% from 2019 to 2021​.
6. Bondi Sands
   Bondi Sands marketed their sunscreens as "reef-friendly," implying the products were safe for marine life. However, this claim was criticized as vague, and the company provided no regulatory definition or certification backing it. Although they removed certain harmful chemicals, they did not clarify other ingredients. This case emphasizes the need for companies to provide clear, third-party verified definitions of ESG (environmental, social and governance) terms like "reef-friendly"​.
7. L'Oréal’s “Sustainable” Packaging Claims
   L'Oréal faced scrutiny for promoting its Elvive Full Restore 5 shampoo bottle as "more sustainable" due to using a small amount of recycled plastic in each bottle. However, the bottle cap was not made from recycled materials and L'Oréal failed to provide transparent comparisons (more sustainable than what?), which highlights how partial claims without full context can mislead consumers​.
8. Herbal Essences “Bio” Line
   Herbal Essences labeled their Bio products as natural and eco-friendly, capitalizing on vague and overused terms like "biodegradable" and "natural." However, some ingredients in the products were actually synthetic, leading to criticisms that the brand was greenwashing to attract eco-conscious consumers without substantiation. As a consultant in the natural and organic products (CPG) industry, I see this type of blanket usage of terms constantly, where companies use words such as "natural" on their labels and in marketing when, in fact, their packaging and ingredients may be synthetic and even unsafe.​
9. Hefty Recycling Bags
   Hefty promoted its recycling bags as great for bagging up a home’s recyclables, leading consumers to believe the bags themselves were eco-friendly. However, the bags are not recyclable and actually bog down recycling centers, rendering what would have been recyclable unusable. In short, they were simply garbage. In 2021, a lawsuit was filed against Hefty, citing California’s greenwashing laws.
10. Quorn Foods “Thai Wonder Grains” Carbon Claims
    Quorn marketed its Thai Wonder Grains as contributing to reducing carbon footprints, but the claim referred only to the brand’s emissions, not the consumers’ environmental impact. The UK’s Advertising Standards Authority (ASA) found this misleading, as the product’s packaging implied a broader environmental benefit than it actually delivered. ​

How Greenwashing Affects B Corp Businesses

Knowing your labeling laws and scrutinizing the companies you purchase from are two key ways to help stay clear of greenwashing scams and support viable, environmentally friendly brands. We all fall victim to unscrupulous marketing, but being aware and asking questions (and filing complaints when necessary) can help keep the green movement alive and healthy.

Greenwashing damages the credibility of sustainable business initiatives and makes it harder for companies genuinely committed to sustainable practices, like B Corps, to gain consumer trust. Misleading environmental claims create skepticism, which can overshadow the efforts of legitimate companies. To counteract greenwashing, B Corps and regulatory agencies advocate for rigorous standards and verified transparency, ensuring that consumers can trust certified claims about sustainability.

Business & Strategy Consulting

The Bellebuono School of Herbal Medicine’s online course Natural Brand Certifications teaches you about the wide variety of environmental and social commitments your business or brand can make, including B-corp, organic, fair trade, WBENC, and cruelty-free.

Selle Impact Consulting will coach your business through these processes and help you strategize and build a solid certification business plan. We support strategy and business planning, leadership coaching, project management and fractional services, and workshops & trainings.