The Ultimate Guide to Greenwashing: How to Spot and Stop Fake Sustainability

You’re trying to make more eco-friendly choices, ditching plastic, buying ethical brands, maybe even paying extra for “sustainable” products. But what if I told you a lot of those so-called green brands are playing you? Welcome to the shady world of greenwashing, where companies talk the talk but don’t walk the walk.

Greenwashing is when businesses exaggerate, mislead, or straight-up lie about their environmental impact to make themselves look good. It’s a marketing trick designed to make consumers (you) feel better about buying stuff, even when that stuff is still harming the planet.

Greenwashing is everywhere! From fast fashion brands pushing “conscious collections” to airlines claiming carbon neutrality while pumping out emissions. It slows down real climate action, makes it harder to know which companies to trust, and lets big corporations keep polluting while pretending they’re part of the solution.

TL;DR: Greenwashing is when companies pretend to be eco-friendly to boost sales while still harming the planet. It’s sneaky, misleading, and slows down real change.


The Seven Sins of Greenwashing

To spot greenwashing, you first need to know how it works. TerraChoice, an environmental marketing firm, identified seven common tactics used by companies to mislead consumers:

1. Hidden Trade-off

A product is marketed as “green” based on one small factor while ignoring its bigger environmental impact.

Example: A paper towel brand promotes itself as “made from recycled materials” but relies on energy-intensive manufacturing and plastic packaging.

2. No Proof

A claim is made without any evidence or certification.

Example: A shampoo bottle that says “50% less plastic” but provides zero data on what it’s comparing itself to.

3. Vagueness

Buzzwords like “eco-friendly,” “green,” or “sustainable” are used without specifics.

Example: A clothing brand advertises “sustainable fashion” but doesn’t explain what makes it sustainable.

4. Worshiping False Labels

Fake or misleading certifications that look official but mean nothing.

Example: A product with a “100% natural” sticker that’s designed to look like a real environmental certification but isn’t regulated.

5. Irrelevance

A claim that sounds good but doesn’t actually matter.

Example: A deodorant brand boasting it’s “CFC-free” when CFCs have been banned for decades.

6. Lesser of Two Evils

A product is framed as the “better” choice when it’s still harmful.

Example: “Organic” cigarettes…yes, they exist.

7. Fibbing

Just straight-up lying.

Example: A car company claims its vehicle emits “zero emissions” but fails to mention the emissions from manufacturing and electricity use.

TL;DR: Greenwashing comes in many sneaky forms, from vague buzzwords to outright lies. Learn to spot the tricks!

The Seven Sins – Greenwashing Checklist (Infographic)

The Seven Sins - Greenwashing Checklist (Infographic)

Common Greenwashing Tactics Used by Companies

  • Buzzword overloading and using vague, feel-good words like “clean,” “eco,” and “conscious” without backing them up.
  • Using earthy colours, leaves, and animals featured on packaging to look more natural.
  • Promoting carbon offset programs instead of actually reducing emissions.
  • Claiming a product is recyclable when most recycling facilities won’t process it.
  • Designing misleading seals and logos that make a product look more sustainable than it is.

TL;DR: If it sounds too good to be true, it probably is. Look past the labels and marketing gimmicks!

The Cost of Greenwashing

Greenwashing doesn’t just make us feel duped, it causes real harm. Greenwashing leads to 1) consumers wasting money on products they think are sustainable but aren’t; 2) the environment suffering because companies keep polluting while pretending to be part of the solution; and 3) genuine sustainable brands struggling because ‘greenwashers’ steal their credibility.

Greenwashing in Australia: What You Need to Know

Major Greenwashing Cases in Australia

1. Qantas Airways

In October 2024, Qantas faced a complaint filed with the Australian Competition and Consumer Commission (ACCC) alleging that the airline’s “fly carbon neutral” program misled consumers. The complaint argued that Qantas’ marketing materials gave the false impression that flights had minimal environmental impact, despite the airline’s continued reliance on fossil fuels.

2. Santos

Energy company Santos was taken to federal court by the Australasian Centre for Corporate Responsibility (ACCR) in December 2024. The ACCR alleged that Santos misled investors by branding itself as a “clean fuels company” with a credible path to net zero emissions by 2040, while failing to adequately disclose emissions associated with its hydrogen production.

3. Mercer Superannuation Australia Ltd.

In August 2024, Mercer was fined $11.3 million for greenwashing. The Federal Court found that the company had misled clients about the sustainability of some investment options, with funds invested in companies involved in alcohol, gambling, and fossil fuels, contrary to their advertised claims.

4. Woodside Energy

Australia’s largest oil and gas company, Woodside Energy, was accused of greenwashing in 2024. Despite publicly stating net zero aspirations, the company was criticized for increasing production, which contradicted its environmental claims.

5. GLAD (Clorox Australia)

The ACCC initiated legal action against Clorox Australia, the manufacturer of GLAD-branded kitchen and garbage bags, alleging that the company misled consumers by claiming its products were made from “50% recycled ocean plastic” without sufficient evidence.

These cases highlight the importance of critically evaluating environmental claims made by companies and the role of regulatory bodies in holding them accountable.

Common Greenwashing Aussie Daily Encounters

Australians face greenwashing in supermarkets, fashion, and even their electricity bills. Here are some common examples:

Supermarket Greenwashing

  • Many “biodegradable” or “compostable” plastics require industrial composting, which most Aussies don’t have access to. They just break down into microplastics in landfill.
  • Supermarket brands use vague terms like “Earth Friendly,” “Green Choice,” or “Eco Smart” with no real certification.
  • Some milk and meat brands claim to offset emissions, but offsets are often questionable and don’t reduce actual emissions.

Fashion & Retail Greenwashing

  • Big brands (H&M, Zara, etc.) push “sustainable collections” while mass-producing cheap, disposable clothing.
  • A product might have 10% recycled content but still contribute to waste and emissions.
  • Many retailers push “eco” cotton bags, but they take more energy to produce than plastic bags and require hundreds of uses to be truly sustainable.

Energy & Household Greenwashing

  • Some energy retailers market their plans as renewable but still rely heavily on fossil fuels.
  • Many conventional brands slap on green labels but contain the same harsh chemicals. Check for genuine certifications like GECA or Planet Ark.
  • Flushable wipes that are marketed as safe for drains but actually clog pipes and harm waterways.

How to Avoid Greenwashing? Check for real certifications, research brands, and be skeptical of vague or feel-good claims.

Australian Consumer Protection Laws & Greenwashing

  • The ACCC (Australian Competition and Consumer Commission) has cracked down on false eco-claims.
  • Companies can be fined if they make misleading environmental claims.
  • Consumers can report greenwashing through the ACCC website.

Australia’s Biggest Sustainability Challenges & Greenwashing Risks

  • Gas being marketed as a “clean” energy.
  • “Biodegradable” plastics that don’t actually degrade in real-world conditions.
  • Misleading carbon-neutral airline tickets.

TL;DR: Greenwashing is rampant in Australia, but the ACCC is cracking down. Stay informed and report dodgy claims!

How to Spot Greenwashing & Avoid Being Fooled

  • Check for proof by looking for third-party certifications like B Corp, Fair Trade, or Global Organic Textile Standard (GOTS).
  • Be skeptical of buzzwords, if a brand says it’s “eco-friendly,” question how.
  • Look for transparency of supply chain and sustainability efforts. Are they clear and measurable?
  • Use websites and apps like Good On You and Choice to help verify claims.
  • Research ethical alternatives and support truly sustainable brands.

What You Can Do to Fight Greenwashing

  • Report misleading claims to the ACCC.
  • Demand proof of sustainability claims from brands.
  • Vote with your wallet and support ethical, transparent brands.
  • Share your knowledge with friends and family.
  • Advocate for stricter greenwashing penalties.

What You Can Do Beyond Reporting Greenwashing

Spotting and reporting greenwashing is important, but real change happens when consumers take action in their daily lives. Here’s how you can go beyond just calling out misleading claims:

Support Genuine Sustainable Brands

  • Look for reputable certifications (e.g., FSC, Fair Trade, B Corp, Certified Organic).
  • Research companies and check sustainability reports and third-party reviews (e.g., Good On You for fashion).
  • Choose local, ethical, and transparent brands over big corporations with sketchy claims.

Reduce Overall Consumption

  • Buy less, choose quality, and opt for second-hand when possible.
  • Repair, reuse, and repurpose instead of replacing.
  • Avoid impulse buys, ask, “Do I really need this?”

Choose Low-Waste & Circular Economy Options

  • Use refillable, package-free, or compostable products.
  • Rent, swap, or borrow instead of buying new (clothes, tools, electronics).
  • Support businesses that offer take-back or closed-loop recycling programs.

Educate & Influence Others

  • Share information about greenwashing and sustainability with friends and family.
  • Encourage workplaces, schools, and communities to adopt real eco-friendly practices.
  • Engage on social media, call out misleading claims and uplift genuine sustainability efforts.

Demand Better From Companies & Governments

  • Email or message companies asking for transparency.
  • Support stricter greenwashing regulations (like the ACCC’s crackdown in Australia).
  • Vote for policies and leaders that prioritise real climate action.

Biggest Impact? Buy Less, Buy Better, and Hold Companies Accountable!

Greenwashing thrives on consumer confusion. But once you know what to look for, it’s easier to avoid. By asking questions, demanding transparency, and supporting genuinely sustainable businesses, we can push companies to make real change, not just slap a green label on their products.

Stay sharp, ask questions, and don’t let companies get away with greenwashing!

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