Green Marketing vs Greenwashing: How Inaction Shapes Brand Perception

Sustainability is the buzzword on everyone's lips. Consumers today have a wealth of knowledge at their fingertips and, as a result, have become more clued up about where their money is going.

Environmentally responsible consumers who desire eco-friendly products that use biodegradable materials, and are produced in a socially responsible way, have led businesses to flood the market with green branding.

And this is no coincidence. Globally, 60% of consumers consider meeting sustainability criteria important when making new purchases. Although attitudes vary across different demographics, 85% of consumers say they've become greener in their purchasing over recent years.

This market shift to eco-friendly businesses has resulted in higher profits as one-third of consumers report they're willing to pay more for sustainable products.

In other words, sustainability is becoming the market expectation – not the exception.

What is Green Marketing? 

Green marketing involves a business concentrating on the environmental and sustainability credentials of their products through their marketing strategy. Showcasing the eco-friendly way products are produced and how a company is working toward a greener future for all can be highly beneficial.

Eco-friendly pursuits that are covered by green marketing include:

• Designing sustainable packaging

• Creating products that benefit the environment

• Using green procedures in the production or distribution process

It’s worth bearing in mind that there are regulations and legal standards for green marketing that businesses need to follow. But green marketing must translate to green action within a company. Otherwise, it risks jeopardizing the reputation of its brand.

What is Greenwashing?

Green marketing is often costly, preventing businesses from following through with their actions and instead claiming to be environmentally friendly when in reality, they are not. This is known as ‘greenwashing.’

Greenwashing is false advertising. It creates an illusion that a company prioritizes sustainability through promoting products and a business model as green when there is no evidence to support this.

As the market desire for sustainably sourced products has surged over recent years, the occurrence of greenwashing has also risen exponentially. Many companies self-proclaim that they are environmentally friendly, despite no factual proof supporting their claims.

In time, greenwashing will damage a company’s reputation and consumer trust. Ultimately, this can lead to a drop in sales, and it can be difficult for a business to recover from the impacts of greenwashing.

Greenwashing is hidden in plain sight.

Many terms like ‘biodegradable’ and ‘plastic-free’ are incredibly vague, and this vagueness is a massive part of the greenwashing problem. Other ways businesses greenwash include labeling a product to make it sound eco-friendly, hiding trade-offs like unethical working conditions or overexploitation of resources, and choosing marketing that is often associated with environmentally responsible products like green color palettes and eco symbols. 

False labels, in particular, are becoming synonymous with greenwashing. As brands are fighting to gain a portion of the growing green market, they are establishing false labels that seem like they possess credible certifications.

Brands that greenwash ultimately hold back the positive impact of the sustainability movement. Slowing climate change mitigation and the plastic crisis are two major environmental causes that can be hampered by greenwashing. 

5 Reasons to Support Sustainability Claims with Action

With so many companies greenwashing and the high costs of green product development, authentic sustainability certifications and transitioning to an eco-friendly business model, why should a business invest in its sustainability and prioritize green marketing?

1. You’ll build brand loyalty.

When a business creates eco-friendly products, it highlights its commitment to sustainability and social responsibility. This is highly attractive to the mindset of the modern market.

With environmentally friendly products, a business can focus on green marketing to let everyone know about its green credentials, which builds brand reputation and loyalty. 

2. You’ll reach new markets.

Although green marketing initiatives can be costly and often associated with high start-up fees, they can save businesses money in the long term by driving access to new markets willing to pay premium costs for sustainable brands. Lifestyle of Health and Sustainability (LOHAS) is one newly identified market that green marketing can access.

3. You’ll meet consumer demand.

It’s no secret that green is the new black. Conscious living is at the forefront of the mass market these days. By investing in green marketing, businesses will be taking a bite out of that market.

4. You’ll lower overhead.

Switching to a sustainable business model doesn’t have to cost the earth. Over time environmentally conscious manufacturing processes, for example, can lower a company’s overhead costs by saving resources like water and energy. Creating eco-friendly products can also reduce disposal costs, and transferring to a digital marketing strategy can reduce waste.

5. You’ll promote green innovation.

Promoting green marketing with a business goes beyond the products they create. Offsetting a company’s carbon emissions, implementing eco-friendly energy practices, and using emission-minded shopping practices are great ways to invest in the planet and promote its green credentials. 

Companies prioritizing sustainability throughout their business model, from manufacturing to logistics, marketing to sales, will be at the forefront of the green revolution. With that, they'll gain substantial trust and reputability from today’s conscious consumers.

Investing in a Greener Future

Supporting green activism can be a simple way for a brand to optimize its green marketing by aligning with a cause that resonates with its values. Donating to environmental organizations, supporting green initiatives and raising awareness of social campaigns can go a long way in helping to develop a consistent green brand message.

Companies that are true to their green word can go a long way in slowing climate change and conserving the environment. Green marketing is part of a more significant societal movement for ethical and environmentally responsible business practices.

Ultimately, the only sustainable companies that’ll survive are those who can support their claims to customers.

Ready to launch your green marketing strategy? Atlas Studio is a certified green design studio that helps brands make sustainable swaps in their marketing materials as well as their business. Book a free consultation, and let’s bring your company’s values to the forefront of your content marketing.