Greenwashing

Chapter 7 addresses the growing issue of greenwashing amidst heightened global awareness of environmental sustainability. As pollution and environmental degradation intensify, stakeholders—consumers, investors, and governments—are increasingly demanding genuine eco-friendly practices from companies. Sustainable development, which balances economic growth, social inclusion, and environmental protection, has become a central focus, emphasizing the need to meet current needs without compromising future generations’ ability to meet their own. Transitioning to sustainable production is complex and slow, requiring systemic changes in operations and a deep integration of sustainability values throughout an organization. This shift affects the entire supply chain and involves significant financial commitments. However, some companies, tempted by the desire to satisfy market demands, resort to greenwashing—creating misleadingly positive impressions of their environmental efforts through false or exaggerated claims. This chapter explores various forms and methods of greenwashing, analysing its impact at the product level, firm level, and within financial markets. By examining the forces driving greenwashing and its effects on sustainability, the chapter aims to reveal how this deceptive practice undermines true progress toward environmental responsibility.