Greenwashing is the practice of making a company, product, or service appear more environmentally friendly than it actually is, using vague, misleading, or false claims to create a false impression of sustainability. 

In SaveMoneyCutCarbon’s view, this matters because it undermines genuine sustainability efforts, deceives consumers and hinders progress towards environmental solutions. It also creates a false sense of environmental responsibility, discouraging companies from making real changes and impacting climate action. 

Most important, greenwashing can erode public trust in sustainability claims, making it harder for genuine efforts to gain traction. 

Greenwashing in the UK manifests in various forms, including misleading claims, deceptive imagery, selective disclosure and vague or exaggerated environmental statements, including using certifications or endorsements that are not valid or have been misused. 

Six common types are:

1. Green-labelling: Using vague or misleading labels to make a product or service appear more environmentally friendly than it actually is. 

2. Green-crowding: Creating a false sense of environmental awareness by making vague or generic claims. 

3. Green-lighting: Spotlighting a positive, often minor environmental feature while ignoring other negative aspects. 

4. Green-hushing: Concealing information about a company's environmental performance or problems. 

5. Green-rinsing: Frequent changes to ESG targets or sustainability goals. 

6. Green-shifting: Blaming consumers for the environmental impact of a product or service rather than addressing the company's own practices.

Companies involved in greenwashing strategies might make misleading claims, using vague or false language - terms like "eco-friendly" or "sustainable" - without providing specific evidence or details. They might also present inaccurate data or statistics to support environmental claims and overstate the positive environmental impact of a product or service. 

Deceptive imagery and branding is another greenwashing tactic, for example using images of nature or green colours without a clear connection to the product's actual environmental impact. Greenwashing companies can also use eco-labels and eco-certification that are not credible or have been misused. 

A single specific positive environmental aspect can also be highlighted while negative impacts elsewhere in the product's life cycle are ignored. This could form part of a larger strategy that does not disclose the full environmental cost of a product or service, including its supply chain and production. 

In the finance sector, the UK government has backed a pioneering green finance standard launched in March (2025) that aims to boost investment in nature and support economic growth while clamping down on “greenwashing”(1). 

The Overarching Principles Standard introduced by the British Standards Institution supports growth in nature-friendly investments across the UK by reassuring businesses these would make a real positive impact on the natural environment. 

The government advises that clear standards would discourage greenwashing and give businesses confidence that their investment is helping the natural world to recover.  It also believes the standard will help to reinforce the ambition to make the UK the green finance capital of the world. 

Business risks

SaveMoneyCutCarbon advises that greenwashing is a significant business risk in the UK because of potential legal ramifications, reputational damage, and erosion of consumer trust. 

Misleading environmental claims can lead to fines, lawsuits, and negative media coverage, while growing emphasis on sustainable practices and investor scrutiny mean that greenwashing can also negatively impact a company's stock price and investor confidence. 

The Competition and Markets Authority (CMA) was granted new powers in April (2025) under the Digital Markets to take action against companies making false or misleading green claims, including those engaging in "greenwashing." This includes the ability to impose fines of up to 10% of a company's global turnover.(2)

Businesses can also face action under existing consumer protection laws and laws relating to misrepresentation if they make false environmental claims. The EU's "Green Claims Directive" is also expected to impact UK businesses, requiring them to substantiate environmental claims(3). 

Being caught in a greenwashing scandal can severely damage a company's reputation, leading to a loss of consumer trust and potentially driving customers to competitors. Negative publicity can spread quickly through social media and word-of-mouth, further exacerbating the damage. 

Financial Risks

• Loss of consumer trust can lead to decreased sales and market share. 

• Potential fines and lawsuits can also negatively impact a company's bottom line. 

• Investors may become wary of companies with a history of greenwashing, leading to a drop in stock prices and difficulty securing funding.

Erosion of trust can also be one of the most caustic effects of greenwashing. Greenwashing can make consumers feel deceived and may lead them to switch to competitors who offer more genuine sustainable options. This can result in lost sales and a decline in market share. 

Furthermore, when consumers are misled by greenwashing tactics, they can lose faith in the environmental claims made by companies in general. This can make it difficult for businesses to build genuine trust with customers and stakeholders, even if they are genuinely committed to sustainability. 

There is also a systemic risk because greenwashing can undermine efforts to address climate change and other environmental issues by creating a false sense of progress and delaying real change. It can also make it more difficult for businesses to differentiate themselves and compete on genuine sustainability credentials. 

The loss of consumer trust, combined with potential fines and negative press, can also negatively impact a company's financial performance, including deterring investors and affecting stock prices. In addition to lost sales, companies caught greenwashing may face legal fees and penalties, further straining their financial resources. 

Greenwashing can also hinder a company's ability to capitalise on genuine sustainability initiatives. When a company's environmental claims are viewed as false or exaggerated, it may become more difficult to attract investors, partners, and customers who prioritise sustainability. 

What to avoid

SaveMoneyCutCarbon advises that companies should focus on authentic and verifiable sustainability efforts, avoid vague language, and ensure all claims are supported by data. They should be transparent about environmental impact and avoid overstating benefits or making false claims. 

Key brand points

• Back claims with evidence: Companies need to use authentic and verifiable data, avoiding unsubstantiated claims about being eco-friendly or sustainable without providing data or metrics to support them. 

• Be transparent about environmental impact: Share information about the full supply chain, manufacturing processes, and emissions, even if it's not all positive. 

• Focus on genuine sustainability efforts: Don't just create a marketing campaign; make real changes to business practices to align with sustainability goals. 

• Use clear and specific language: Avoid jargon or technical terms that consumers may not understand. 

• Avoid vague or misleading terms: Instead of using generic terms like "eco-friendly," "sustainable," or "green," be specific about what the company is doing. 

• Be honest about areas for improvement: Don't try to portray the  company as perfect. Acknowledge areas that need work to reduce environmental impact.

• Don't rely solely on green imagery: Make sure imagery is aligned with the company's actual environmental practices. 

• Avoid false labels or certifications: Ensure that any certifications or labels you use are from reputable sources and are not misleading. 

Transparency and honesty

Companies should communicate clearly about sustainability initiatives, to make sure consumers understand what they are doing and why. Cherry-picking positive metrics misleads and confuses so companies need to avoid highlighting only the positive aspects of sustainability efforts while ignoring negative impacts. 

Every company would benefit from being realistic about the impact of sustainability efforts and also being mindful of the entire product lifecycle, including environmental impacts of all  products from raw material sourcing to disposal. 

Companies can build trust by focusing on long-term sustainability goals, rather than making short-term promises. They should set measurable, time-bound goals and show how the company is progressing towards them. They could also partner with organisations that share a commitment to sustainability. 

Trusted is also strengthened by engaging with consumers and stakeholders, listening to their concerns and being open to feedback. 

Brands successful at communicating sustainability

SaveMoneyCutCarbon advises that several UK brands are excelling at communicating their sustainability efforts, demonstrating that effective sustainability communication involves being transparent about actions, aligning messaging with values, and engaging with consumers to foster a shared commitment to a more sustainable future. 

Innocent Drinks and Leon, for example, highlight their commitment to sustainable sourcing and biodegradable alternatives. Others, like Brew Dog, prioritise transparency through public reports and specific brand initiatives. 

Brew Dog brewery actively publishes data on its emissions and focuses on energy efficiency, waste reduction, and community impact. 

Innocent Drinks source fruit for their smoothies through the Rainforest Alliance, demonstrating commitment to fair trade and environmental protection.

Leon has replaced plastic straws and cutlery with biodegradable alternatives, highlighting their commitment to reducing plastic waste. 

Lush cosmetics company is known for its ethical sourcing, cruelty-free products, and commitment to reducing packaging waste.

Some global brands excel at communicating sustainability efforts, including Patagonia, Unilever, Nike, and LEGO. These brands effectively communicate their values and actions through various channels, building trust and loyalty with consumers. 

Patagonia: The outdoor clothing brand is known for its strong sustainability messaging and actions. They've been pioneers in sustainable business practices, with initiatives like "Worn Wear" encouraging customers to repair, reuse, and recycle their clothing. They also use recycled materials in their product lines and promote organic cotton. 

Unilever: The large consumer goods company has a comprehensive sustainability plan, "Sustainable Living Plan," which focuses on improving people's health and well-being while reducing the environmental impact of their products. Seven of their top ten brands are part of this initiative, demonstrating their commitment to sustainability across their portfolio. Unilever Sustainable Living Brands are growing faster than other parts of the business, demonstrating a commitment to sustainable practices. 

Nike: The global company has incorporated sustainability into its brand messaging and business practices for years, setting ambitious goals and making significant progress in areas like carbon emissions, water consumption, and waste diversion. 

LEGO: The toy company has successfully communicated its commitment to sustainability by switching to sustainable materials like recycled plastic and plant-based materials in its bricks and packaging. 

Bibliography

1 “New world-leading nature finance standards launched to encourage green investment (Accessed June 2025) https://www.gov.uk/government/news/new-world-leading-nature-finance-standards-launched-to-encourage-green-investment

2 “CMA to boost consumer and business confidence as new consumer protection regime comes into force” (Accessed June 2025) https://www.gov.uk/government/news/cma-to-boost-consumer-and-business-confidence-as-new-consumer-protection-regime-comes-into-force

3 “Green Claims” (Accessed June 2025) https://environment.ec.europa.eu/topics/circular-economy/green-claims_en