The 7 Sins of Greenwashing And How To Avoid Them

Nearly 70% of consumers in Finland agree that sustainable and eco-friendly practices are important factors when deciding whether or not to support a brand. With more demand from millennials and Gen Z especially, thousands of “green” products have flooded the market. But how does one tell if a product is as green as it claims to be?
This can be hard due to the practice of greenwashing. To help you, we’ll discuss the following:

• The definition of greenwashing
• The 7 Sins of greenwashing
• How Dilute has avoided greenwashing

What Is Greenwashing?

Greenwashing is the practice of making exaggerated, misleading, or unsupported claims about a product's sustainability or environmental friendliness to attract consumers. Although the term was coined in the 1980s, it has become increasingly common in recent years as more consumers look for environmentally friendly products.

In 2010, TerraChoice published a report identifying seven common ways companies mislead consumers through environmental claims. These became known as the 7 sins of greenwashing.

What Are the 7 Sins of Greenwashing?

1. Sin of the Hidden Trade-Off

This happens when a company promotes a product as environmentally friendly based on one positive feature while overlooking other environmental impacts.

One example is organic farming. While it has environmental benefits, it can also require more land than conventional farming. Water use and other impacts vary depending on the farming methods. This makes it difficult to say that organic farming is always the better environmental choice.

Another example is paper products that highlight recycled materials or sustainable forestry practices without considering the impact of manufacturing. Paper production can require significant amounts of water and generate waste that needs proper treatment to prevent environmental harm.

2. Sin of No Proof

This refers to environmental claims that cannot be supported by reliable evidence or independent third-party certification. A company might repeatedly claim its products are eco-friendly while providing little information about its ingredients, supply chain, or manufacturing processes.

Without clear evidence to support these claims, consumers have no reliable way of knowing whether they are true.

3. Sin of Vagueness

This happens when environmental claims are so broad or poorly defined that consumers can easily misunderstand them.

Words like "natural" or "chemical-free" are often used to make products sound safer or more environmentally friendly, even when these claims provide little meaningful information.

For example, many cosmetic brands describe their products as "natural" or "all-natural." This might simply mean that some or all ingredients come from plants rather than synthetic sources.

Since terms like "natural" are not consistently defined or regulated across product categories, companies may interpret them differently. And just because something is natural doesn't automatically mean it's safer or better for the environment.

4. Sin of Irrelevance

This involves environmental claims that may be true but don't provide meaningful information about a product's environmental impact. For example, a product might advertise itself as "CFC-free," even though the use of these ozone-depleting substances is already banned in that product category.

While the claim may be accurate, it doesn't necessarily make the product more environmentally friendly than its alternatives.

5. Sin of Lesser of Two Evils

This happens when a company highlights one environmental benefit while distracting consumers from more significant environmental or health concerns associated with the product.

A well-known example is the term "clean diesel" used in automotive advertising.

Although certain diesel engines may produce fewer emissions than older models, burning diesel still releases carbon dioxide and other pollutants. Calling it "clean" can therefore create a misleading impression of its overall environmental impact.

6. Sin of Fibbing

This is the most straightforward form of greenwashing: making environmental claims that are simply false. Companies may choose to use misleading language rather than make outright false statements, as false advertising can lead to legal consequences.

In recent years, several major companies have faced legal challenges over misleading environmental claims.

7. Sin of False Labels

This happens when companies use misleading labels or symbols that make a product appear to have been certified by an independent third party, even when no such certification exists. For example, a product might feature green leaves, "eco" symbols, or certification-style badges that resemble official environmental labels.

These can give consumers the impression that the product's environmental claims have been independently verified.

That's why it's worth taking a closer look at the labels on products marketed as eco-friendly. If there's no legitimate, independent organization behind a certification, the label alone doesn't prove anything about the product's environmental impact.