The State of Greenwashing Around the World

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Greenwashing incidents can have a huge impact on consumer trust and even pose legal issues
For the first time in six years, RepRisk says greenwashing has made a decline but Capgemini research shows consumer fears of false claims are on the rise

Greenwashing has enormous implications, both legally and for consumer trust. 

Companies aiming to capitalise on worldwide demands for sustainability without following through to the letter can put themselves at risk. 

It can divert attention from real sustainability efforts, damage reputations and even lead to fines. 

For the first time in six years, greenwashing has made a decline according to RepRisk.

The state of greenwashing in 2024

Lubomila Jordanova, CEO and Founder of Plan A and Co-Founder of the Greentech Alliance, says: “During the first Earth Day in 1970, corporations spent eight times more on establishing a green image through advertising than the amount they spent on environmental research initiatives.”

Lubomila Jordanova, CEO and Founder of Plan A and Co-Founder of the Greentech Alliance

RepRisk’s October 2024 report shows a 12% decline in greenwashing cases, so things have improved since the 70s. 

Despite this, high-risk incidents have surged by more than 30% in 2024. 

It seems like regulations are making a difference. In the EU’s banking and financial services sector, subject to stricter regulations, climate-related greenwashing incidents declined 20% in 2024. 

Private companies represent 70% of greenwashing cases in Europe and North America, where incidents are higher than elsewhere around the world. 

Research from Capgemini shows that consumer beliefs of greenwashing are on the rise. 

Dr James Robey, Executive Vice President, Global Head of Sustainability at Capgemini, says: “Despite increasing corporate efforts to address sustainability, consumer trust remains a significant challenge. 

Dr James Robey, Executive Vice President, Global Head of Sustainability at Capgemini

“A staggering 52% of consumers believe organisations are greenwashing their initiatives—up from 33% just a year ago.”

Greenwashing around the world in 2024

RepRisk says greenwashing incidents remain highest in Europe, with 918 companies at risk of greenwashing in 2024. 

This is, however, a decrease of nearly 19% from 2023. 

Andreas Rasche, Professor and Associate Dean at Copenhagen Business School, says: “Increased transparency through regulations like CSRD, SFDR, and the EU Taxonomy is likely to be one driver behind this trend. 

Andreas Rasche, Professor and Associate Dean at Copenhagen Business School

“The Green Deal’s commitment to tackle false environmental claims at an EU level starts to pay off.

“These regulatory changes push many firms into seeing greenwashing as a risk to be managed.”

In the UK, greenwashing incidents saw a slight drop in 2024 of nearly 4%, but this remains 179% higher than 2018 levels. 

RepRisk’s report says that in the United States, the number of companies linked to greenwashing in 2024 increased by just under 6%, around 4% less than in 2023. 

In September 2024, Keurig Dr Pepper Inc. was charged by the US Securities and Exchange Commission with making inaccurate statements about recyclability. The company agreed to pay a US$1.5m civil penalty to settle these charges.

Robert Little, Sustainability Strategy Lead for gTech at Google, says: “While transparency is paramount, I also worry about the rising fear of 'greenhushing'. 

Robert Little, Sustainability Strategy Lead for gTech at Google

“Are companies hesitant to share their (imperfect) initiatives due to the potential for scrutiny or backlash, and could this fear be stifling genuine progress towards a more sustainable future? 

“Would it be better to make unrecyclable cups and just say nothing, or is there a way to be honest about the challenges while still striving for improvement? 

“Let’s hope this serves as a catalyst for more honest sustainability efforts across industries. After all, true progress comes from honest actions, not misleading claims.”

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Asia follows behind Europe and the US and Canada in the number of companies at risk of greenwashing, but decreased by 19% from 2023. 

In Africa, companies at risk of greenwashing saw an increase from 61 in 2023 to 97 companies in 2024. 

Australia sees an 11.5% increase in the number of companies at risk of greenwashing in 2024.

The country’s Federal Court ordered a record-breaking greenwashing penalty against Vanguard Investments Australia in September 2024. 

Sarah Court, Deputy Chair of the Australian Securities and Investments Commission, said of the ruling: “It is essential that companies do not misrepresent that their products or investment strategies are environmentally friendly, sustainable, or ethical. 

Sarah Court, Deputy Chair of the Australian Securities and Investments Commission

“The size of the penalty should send a strong deterrent message to others in the market to carefully review any sustainable investment claims.”

The energy industry and greenwashing

RepRisk’s report shows the oil and gas sector is most frequently associated with greenwashing, accounting for 14% of 2024 incidents.

In June 2024, the California Attorney General escalated the state’s legal battle against oil companies ExxonMobil, Shell, Chevron, ConocoPhillips, bp and the American Petroleum Institute for alleged deception around climate change and the impact of fossil fuels.

The amended complaint provided new evidence of greenwashing and false advertising.

The South African advertising regulator ruled that TotalEnergies was “misleading” in claims in some of its advertisements about sustainability. 

TotalEnergies appealed the ruling in September 2024 and says it believes its climate plans are credible. 

These cases highlight the growing accountability and scrutiny facing the oil and gas sector, signalling a potential shift towards greater transparency and integrity in corporate environmental claims.

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