Key Takeaways
Greenwashing is still everywhere, and the data backs it up. Across the EU, 53% of green claims give vague, misleading, or unfounded information, and 40% have no supporting evidence at all.
- Pledges often fall short. Of 3,574 companies with climate pledges, 96% miss at least one greenwashing risk indicator.
- Consumers are losing faith; 62% of consumers believed companies were greenwashing in 2025, up from 33% two years earlier.
- Executives admit to it; 58% of executives globally say their companies have greenwashed. In North America, the figure jumps to 72%.
- Cases are getting more serious. Greenwashing incidents fell 12% overall through June 2024, but high-severity cases rose 30%.
You’re in the grocery on a Saturday, staring at two brands of laundry detergent. One has a bright green label, a little leaf logo, and the words “eco-friendly” and “sustainable” printed big enough to read from the next aisle. The other? Just detergent. Plain box, no promises.
You think, why not do the planet a small favor and toss the green one in the cart? Easy.
Except—what if that leaf is doing a lot more work than the formula inside it?
That’s the sneaky thing about greenwashing. It usually looks exactly like the right choice.
What is Greenwashing?
Greenwashing is when a company dresses itself up as greener than it really is. It’s a costume. The brand gets to ride the demand for sustainable products without doing the often slow and pricey work of actually being one.
The word blends “green” with “whitewashing,” which means painting over whatever you’d rather people didn’t notice.
We get why it’s tempting. A few buzzwords, some earthy colors, maybe a leaf on the box, and you’ve got the look of sustainability, plus an excuse to charge more. Behind the mask, though, the company might still be burning through non-renewable resources or polluting, betting that nobody reads past the label.
And when shoppers get fooled often enough? They stop trusting everyone. Honest brands get buried in a haystack of fake needles. Some just stop caring whether any claim is real, which is arguably worse for the planet than the lie itself.
So why should a digital marketer like you care? Because greenwashing does more damage than most people think, and some of it can land on your brand. The numbers below make that case better.
Prevalence and Scope of Greenwashing
- 54/100 is the average compliance score across every scanned site (EcoClaim)
- 18,000+ environmental claims have been analyzed across 3,600+ pages (EcoClaim)
- 30% of sites (271 sites) score 80–100 (broadly compliant) (EcoClaim)
- 19% of sites scored 40–59 (needs work) (EcoClaim)
- 15% of sites have minor issues (60–79 score) (EcoClaim)
- 69% of sites carry at least one red-severity violation—the tier that maps to an outright prohibited practice (EcoClaim)
- Scanned sites average 13.4 flagged claims each, across 13,013 findings (EcoClaim).
- 16% of sites came back with no flags at all (EcoClaim)
- A study of 3,574 companies with climate pledges found that 96% fall short on at least one greenwashing risk indicator (npj Climate Action).
- 37% of findings are Red or prohibited (4,811 practices) (EcoClaim)
- 60% of findings are Amber or substantiate (7,765 practices) (EcoClaim)
- 3% of findings are Green or advisory (437 practices) (EcoClaim)
- 79% of scanned sites have generic environmental claims without specific, verifiable proof (EcoClaim)
- 59% of scanned sites have misleading visual imagery or nature-evoking design (EcoClaim)
- 25% of scanned sites misuse or imitate certification logos and trust marks (EcoClaim)
- 30% of scanned sites make environmental claims about an entire product when only part of it qualifies (EcoClaim)
- 24% of scanned sites make environmental claims based solely on carbon or emissions offsetting (EcoClaim)
- 1,233 environmental claims were identified (PLOS Climate via Inside Climate News)
- 68% (841) of the 1,233 environmental claims were climate-related (PLOS Climate via Inside Climate News)
- 38% (467) of the 1,233 claims were unverifiable future projections (PLOS Climate via Inside Climate News)
- Companies provided supporting evidence for 356 (29%) of the 1,233 claims (PLOS Climate via Inside Climate News).
- 40% of environmental claims have no supporting evidence (European Commission)
- 98% (1,213) of 1,233 environmental claims could be categorized as greenwashing (PLOS Climate via Inside Climate News)
- 53% of green claims contain misleading or unfounded information (European Commission)
- In January 2021, EU consumer authorities found that 42% of online green claims were exaggerated, false, or deceptive, while a parallel International Consumer Protection and Enforcement Network sweep found that 40% of green claims online could be misleading (European Commission, UK Competition and Markets Authority).
- RepRisk identified 1,841 incidents of misleading communication globally in 2024, with 56% involving environmental issues (RepRisk).
- 81% of Shell’s ads and promotions were greenwashing, even though 80% of its investment goes to oil and gas (Greenpeace Netherlands)
- A Harvard investigation revealed that 67% of social media posts by oil, car, and airline companies painted a “green innovation” narrative, representing various extents of greenwashing (Greenpeace).
- In 2024, the EU saw a decline of just over 20% in greenwashing cases (RepRisk).
- The Netherlands saw the largest reduction in greenwashing cases among EU member states, with cases falling by 48% (RepRisk).
- In the UK, greenwashing incidents saw a slight drop in 2024 of nearly 4%, but this remains 179% higher than 2018 levels (RepRisk).
- 164 advertisements contained environmental claims, particularly frequently in the cosmetics, food, and furnishing or household sectors (The Goodwins)
- More than 50% of these green claims would no longer be permitted from September 2026 in accordance with the new EU “Empowering Consumers” (EmpCo) Directive (European Commission).
- Only 12% of the print ads with environmental claims examined meet basic requirements such as direct access to specific evidence or independent verification, for example, via a QR code or link (The Goodwins).
- Incidents of greenwashing spiked by 35% in 2023 (RepRisk).
- Between June 2023 and June 2024, global greenwashing cases decreased by 12%, marking the first decline in six years; however, high-severity cases surged by 30% during the same period (RepRisk).
- 30% of companies flagged in 2023 were repeat offenders in 2024 (RepRisk)
- Around 25% of the 1,100 businesses inspected by the DGCCRF (Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes) in 2021–2022 for environmental claims showed irregularities, leading to 141 warnings, 114 injunctions, and 18 legal proceedings (DGCCRF).
- 1/2 of all green labels offer weak or nonexistent verification (European Commission)
- As many as 95% of consumer products marketed as “green” commit at least one form of greenwashing (TerraChoice).
- 54% of companies in Asia, Europe, and North America linked to greenwashing were flagged for misleading claims about greenhouse gas emissions, pollution, and other climate issues (RepRisk via ESG Dive)
- The median site score is 54/100 across 912 scanned sites (EcoClaim).
- 17% of sites have severe exposure (0–19 score) (EcoClaim)
- 70% of companies linked to greenwashing were private, and 42% of US companies linked to greenwashing were repeat offenders (RepRisk)
- Ecolabel Index lists 456 eco-labels across 199 countries and 25 industry sectors (Ecolabel Index).
- In the US, greenwashing cases fell by just over 10% in 2023 (RepRisk).
- 1,500 organizations worldwide have removed or amended unsubstantiated anti-paper statements following engagement with Two Sides’ Anti-Greenwash campaign (Two Sides via PostEurop)
- In Europe alone, Two Sides has persuaded more than 950 organizations to withdraw misleading anti-paper messaging from their communications (Two Sides).
- More than 80% of 53 environmental claims assessed in the food and drink sector were related to climate impacts (Changing Markets).
- 80% of large beauty brands do not disclose their progress in meeting greenhouse gas emissions targets (Good on You)
- 78% of large beauty brands lack certification to show they’re not testing on animals (Good on You)
- 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 (GreenTech Alliance).
- Linked greenwashing cases in the US rose by just under 6% in 2024 (RepRisk).
Consumer Perception and Behavior
- Over half (54%) of UK consumers are prepared to boycott brands over misleading green claims, with almost one in five having already changed their purchasing decisions due to greenwashing (KPMG UK).
- 38% of KPMG’s survey respondents would stop investing in companies found to have greenwashed (KPMG UK)
- 91% of consumers believe at least some brands engage in greenwashing, indicating widespread distrust in environmental marketing claims (PicoNext)
- A third of UK consumers (33%) express skepticism about green labels and sustainability claims, while 28% struggle to identify genuinely sustainable products due to inconsistent labeling (KPMG UK).
- Approximately 65.5% of consumers in Mexico and Canada are skeptical of brands’ environmental assertions (YouGov).
- 88% of American Gen Z consumers express distrust in brands’ environmental, social, and governance (ESG) claims (McKinsey)
- Only about 25% of European consumers say they often or very often seek out environmental information when shopping for products or services (BEUC).
- 61% of the full population consider environmental info “in part” when deciding what to buy (BEUC)
- 63% of consumers have noticed carbon footprint or carbon neutral labels at least once (Euroconsumers)
- 34% of consumers have seen carbon footprint or carbon neutral labels more than twice (Euroconsumers)
- 40% of consumers believe they understand what carbon neutral claims mean, but most answer incorrectly when asked (BEUC)
- Nearly 48% of survey respondents prefer products that carry an environmental label over those without one (BEUC).
- Two in three respondents (69%) say they feel poorly or not at all informed about the requirements companies must follow to use green claims or labels (BEUC).
- Nearly one-third (31%) of Europeans don’t know or are unsure whether environmental claims and labels are verified by an independent body (Euroconsumers).
- 23% of Europeans believe (mistakenly) that environmental claims are verified by a public authority by default (BEUC)
- Over a third (36%) of respondents have high trust in public authorities to verify green claims and labels (Euroconsumers).
- Roughly 75% of consumers believe that companies should only be allowed to use “green” claims or eco-labels if these are pre-approved or verified by authorities or accredited third parties (BEUC).
- Almost 70% of consumers trust public agencies and non-profits to play a gatekeeping role for green claims (BEUC).
- 62% of consumers believed companies were greenwashing in 2025, up from 52% in 2024 and 33% in 2023 (Capgemini)
- Only 25% of consumers consider sustainable products affordable (Capgemini).
- Just 16% of consumers feel they have access to sufficient sustainability information (Capgemini).
- 52% of people globally have encountered false or misleading information about brands’ sustainability actions (Kantar)
- 60% of consumers view social media companies as the worst greenwashing offenders (Kantar)
- 42% of US consumers visit thrift shops to achieve sustainability goals (Bain & Company)
- 56% of European consumers believe the environmental reasons given for moving to digital are dishonest and primarily motivated by cost reduction (Two Sides via Digital Printer)
- 76% of consumers want the freedom to choose how they receive communications (Two Sides via Digital Printer)
- Share of consumers in the United States who would stop buying from fashion brands that have been proven to make false claims about sustainability (Statista):
| Response | Share of US Consumers |
| Would stop buying from greenwashing fashion brands | 30% |
| Would probably stop buying | 25% |
| Might stop, depending on context | 30% |
| Would not stop buying | 10% |
| Don’t care/Don’t know | 5% |
- 66% of consumers would pay a higher price for a product when it aligns with their values (Nielsen)
- 9.7% is the average premium consumers are willing to pay for sustainably produced or sourced goods (PwC)
- 42% of consumers in the pet food and baby hygiene industry believe these sectors are greenwashing (Kantar)
- 71% of consumers say sustainability is important when making a purchase decision (PicoNext via The Ethos)
- 55% of Americans are willing to spend more on products they perceive as sustainable (LendingTree)
- Each rise in the severity of greenwashing translated to a 0.1711 gain in the intensity of backlash, which was found to be statistically significant (b = 0.1711, p < 0.001) (Canadian Center of Science and Education).
- 55% of finance leaders surveyed felt that sustainability reporting in their industry risks being perceived as including elements of greenwashing (EY)
Regulatory Landscape and Enforcement
- More than 280 formal investigations into greenwashing by fund managers alone were initiated by the European Securities and Markets Authority (ESMA) and national competent authorities between January 2024 and March 2026 (Data Intelo).
- Vanguard was fined AUD 12.9 million by the Federal Court of Australia for misleading investors about its ESG exclusionary screens (RepRisk).
- In 2020, Italy’s competition authority fined Eni €5 million over misleading claims for Eni Diesel+, including emissions reductions of up to 40%; Italy’s Council of State overturned the fine in April 2024 (Italian Competition Authority (AGCM), Peters & Peters).
- The largest greenwashing fine to date was imposed on German car manufacturer Volkswagen for falsifying emissions data, estimated at $14.7 billion (US Department of Justice).
- Toyota paid a $180 million civil penalty for violating the EPA’s emission-defect reporting requirements (US Department of Justice).
- 93% of Canadians support legislation that penalizes companies for making unproven environmental claims (Greenpeace Canada)
- Goldman Sachs asset management paid $4 million to the US Securities and Exchange Commission (SEC) for misstatements about its ESG investment processes (US SEC).
- 64% of EU funds sampled by ESMA changed their names ahead of the May 2025 compliance deadline, and Morningstar estimates that at least 1,450 funds have been renamed since January 2024 (ESMA via ESG Today, Morningstar)
- The FPS Economy received 21 greenwashing complaints in 2022, more than doubling the nine complaints received in 2021 (FPS Economy via Eubelius).
- The FPS Economy performed 55 inspections in 2022, resulting in a total of 36 warnings (KPMG).
- In September 2024, Keurig Dr Pepper Inc. was charged by the US Securities and Exchange Commission with making inaccurate statements about recyclability and agreed to pay a $1.5m civil penalty (US SEC).
- In 2022, the Australian Competition and Consumer Commission reviewed 247 businesses and found that 57% made concerning environmental claims (ACCC via MinterEllison).
- More than 500 businesses and organizations have endorsed the Guide against Greenwashing in Norway (KPMG).
- In 2025, more than 1,400 enforcement actions related to misleading sustainability claims were initiated globally, up from fewer than 600 in 2022 (Data Intelo).
- The SEC had a $25 million settlement with Deutsche Bank’s DWS Group in 2023 (RepRisk).
Industry-Specific Findings
- Between 8% and 28% of biodiversity-risk-flagged companies across key sectors have also been flagged for misleading communications risk, including greenwashing risk (RepRisk).
- The textiles and fashion sector has an average compliance score of 43 (EcoClaim).
- The travel, tourism, and hospitality sector has an average compliance score of 40 (EcoClaim).
- General/other sector has an average compliance score of 61 (EcoClaim).
- 10% of global carbon emissions are caused by the fashion industry (UNFCCC)
- 58% of consumers perceive the energy sector as the most likely to engage in greenwashing, followed closely by the fashion industry at 57% (KPMG UK)
- 18% of companies linked to greenwashing from September 2018 to September 2023 were also linked to social washing, increasing to 31% when only publicly listed companies are considered (RepRisk)
- The food and beverage sector has an average compliance score of 42 (EcoClaim).
- In 2025, 294 banking and financial services organizations were flagged for greenwashing risk, a 19% year-on-year increase from 248 companies the previous year (RepRisk).
- The banking and financial sectors experienced a 70% increase in climate-related greenwashing incidents over the past year, with over 50% of these incidents involving associations with fossil fuel companies (RepRisk).
- In 2024, Asia trailed Europe and North America in the number of companies at risk of greenwashing, with a 19% decrease from 2023 (RepRisk).
- In 2024, the oil and gas sector accounted for the largest share of cases, while banking cases fell almost 27% (RepRisk).
- The cosmetics and personal care sector has an average score of 37 (EcoClaim).
- The co-occurrence of misleading communications risk and biodiversity risk was 23% in the oil and gas sector (RepRisk).
- Energy and utilities accounted for approximately 16.2% of application revenue (Data Intelo).
- Retail captured approximately 10.4% of application revenue (Data Intelo).
- The others category, encompassing healthcare, agriculture, real estate, and technology sectors, represented approximately 4.6% of application revenue (Data Intelo).
- The global secondhand apparel market is projected to reach $393 billion by 2030 (ThredUp).
Corporate Practices and Commitments
- 70% of the companies excluded value-chain emissions from targets, even though such sources typically constitute the largest fraction of corporate footprints (npj Climate Action)
- 40% of companies had questionable use of offsets (npj Climate Action)
- 21% of companies had missing interim targets (npj Climate Action)
- 20% of companies had a lack of meaningful progress toward targets (npj Climate Action)
- 58% of North American companies’ executives admit their companies have overstated sustainability efforts and engaged in greenwashing (Google Cloud)
- Only 36% of executives say they have tools to quantify their sustainability efforts, and just 17% use those measurements to optimize based on results (Google Cloud).
- 90% of marketers are ready to rewire their work for the planet (Content For Good & Co.)
- In 2023, Cemefi awarded the Distintivo ESR to 1,042 large companies and 1,271 SMEs (Cemefi via Corresponsables, Cemefi via Bien Informado).
- 61% of CEOs are confident they can meet their 2030 net-zero goals, up from 51% in 2024 (KPMG CEO Outlook via ESG Today)
- 93% seem confident that companies will meet their sustainability targets (EY)
- Fewer than half (47%) of finance leaders think it’s very likely that their organization will deliver against its major sustainability priorities and meet stated targets (EY).
- More than three-quarters of consumers say corporations should do more to reduce greenhouse gas emissions (Capgemini).
- Only 38% of organizations are upgrading infrastructure in response to climate change impacts (Capgemini).
- 31% of organizations are shifting production to less climate-vulnerable regions (Capgemini)
- 26% of organizations are redesigning products in response to climate change impacts (Capgemini)
- Only 41% of companies had adopted a transition plan for climate change mitigation (EY).
- Just 17% had disclosed capital expenses (capex) in relation to climate initiatives (EY).
- Only 4% had disclosed operating expenses (opex) in relation to climate initiatives (EY).
- Over a third of those surveyed (36%) are dissatisfied with entities’ progress in delivering new nonfinancial performance reporting (EY).
- 62% of investors surveyed believe that the accuracy of sustainability reporting needs improvement (EY)
- Less than a third (29%) of investors think the European Sustainability Reporting Standards (ESRS) are sufficiently detailed and complete for investment decision-making (EY).
- 22% of investors think the International Sustainability Standards Board (ISSB) standards are sufficiently detailed and complete for investment decision-making (EY)
- 64% of those surveyed agree that ISSB and ESRS reporting should be independently audited (EY)
- 68% of surveyed investors feel very well or adequately equipped to assess information relating to the ESG practices of supply chains (EY)
- 62% of surveyed investors feel very well or adequately equipped to assess climate-related information (EY)
- 43% of senior UK employees surveyed in 2021 believed their company was guilty of greenwashing (Advanced via Circular Online)
Financial and Investment Impact
- $2.1 trillion in the United States comes from nature-dependent sectors (RepRisk)
- From 2018 to 2023, over $286 billion in SLLs (sustainability-linked loans) were issued to industries known for environmental damage, including fossil fuels, mining, and deforestation (Pulitzer Center).
- Europe needs €750–€800 billion in additional investment every year to meet its competitiveness and climate goals (Draghi report via Eco-Business).
- 38% of investors said outcomes from prior ESG and sustainability-related initiatives had a substantial impact on their voting on ESG and sustainability-related shareholder solutions (EY)
- Greenwashing could cost the European mailing and postal sector alone more than €337 million annually through reduced paper volumes and declining consumer confidence (Two Sides via PrintWeek India).
- Voluntary carbon markets are projected to expand to $50 billion by 2030 (Data Intelo).
- 88% of investors surveyed have increased their use of ESG information (EY)
- 92% worry that ESG-related initiatives harm short-term corporate performance (EY)
- 66% of investors say their institution is likely to decrease its consideration of ESG in decision-making (EY)
- 63% of investors surveyed say that shifts in the business cycle are the factor that will most acutely or substantially affect their institution’s investment strategy over the next two years (EY)
- 62% of investors are most likely to monitor trade restrictions and tariffs (EY)
- 53% of investors are most likely to monitor the cost of capital (EY)
- 50% of investors are most likely to monitor labor cost and availability (EY)
- 55% of investors surveyed state that the impact of climate change will acutely or substantially affect their investment strategies in the near term (EY)
- 78% of investors surveyed said that companies should make investments that address ESG issues relevant to their business, even if doing so reduces profits in the short term (EY)
- 20% described investors as being “primarily focused on quarterly earnings and indifferent to long-term investments such as sustainability” (EY)
- 86% of investors surveyed confirmed that their recent voting record generally favored ESG shareholder resolutions (EY)
- 39% of investors said political or social pressure on ESG matters had a substantial impact on their voting on ESG and sustainability-related shareholder resolutions (EY)
- Average levels of support for shareholder resolutions fell from 28.3% in 2023 to 21.6% this year (EY).
- 26% of investors say that the resolutions’ potential to drive long-term value had substantially influenced their firm’s voting (EY)
- 10% state that their firm’s voting record was driven by the belief that the resolutions would impact near-term profitability (EY)
- 64% of investors surveyed say they are most likely to closely monitor losses or stranded assets tied to extreme or anomalous weather-related events (EY)
- Insurance premiums for physical risks and natural catastrophe protection are set to reach $200 billion–$250 billion globally by 2030 (EY).
- The global cost of decommissioning stranded assets in the energy sector could be as high as $8 trillion (EY).
- 63% of investors also monitor routine climate reporting (EY)
- 41% of investors pay attention to shifts in climate-related policies by other investors (EY)
- Just 17% of surveyed investors monitor shifts in climate-related policies by companies (EY).
- More than 3,600 climate litigation cases have been filed globally since 1986, over three-quarters since 2015 (Grantham Research Institute).
- Shocks to the global economy related to biodiversity loss and ecosystem damage could cost upwards of $5 trillion (EY).
- 77% of asset managers surveyed say they have increased their focus on the development of ESG-related investment products (EY)
- 74% note that client interest in ESG-related investment products had either substantially or somewhat increased over the past year (EY)
- 87% of respondents expect that their firm’s spending on ESG research and data will increase or remain unchanged over the next 12 months (Morningstar Sustainalytics)
- 49% of respondents plan to grow or maintain their sustainable investment market share (Morningstar Sustainalytics)
- 25% of respondents say they will reframe their communications around sustainable investing (Morningstar Sustainalytics)
- 47% of survey participants cited gaps in data coverage across asset classes and geographies as the biggest pain point in implementing their sustainable investment strategies (Morningstar Sustainalytics)
- The investors segment is projected to grow at a CAGR of 22.4% through 2034, the highest growth rate among defined end-user segments (Data Intelo).
- Investors represented approximately 15.8% of end-user revenue in 2025 (Data Intelo).
- The financial services application segment is growing at a CAGR of 22.1% through 2034, the highest rate among application verticals (Data Intelo).
- The regulatory bodies end-user segment accounted for approximately 16.4% of revenue in 2025 (Data Intelo).
- Small and medium enterprises (SMEs) represented approximately 25.4% of market revenue in 2025 (Data Intelo).
- SME is projected to expand at a CAGR of 23.1% through 2034 (Data Intelo).
- 53% of large companies surveyed for the 2022 EY Global Corporate Reporting and Institutional Investor Survey revealed that they faced short-term earnings pressure from investors (EY)
- 58% of investors say greenwashing is a somewhat greater problem compared with five years ago (EY)
- 27% of investors say greenwashing is a much greater problem compared with five years ago (EY)
Greenwashing Detection and AI Market
- The Cloud deployment mode dominated the greenwashing detection AI market in 2025, accounting for approximately 71.8% of total revenue by deployment type (Data Intelo).
- The United States alone hosts more than 340 active ESG-focused fintech and sustainability software companies (Data Intelo).
- Asia-Pacific emerged as the fastest-growing regional market in 2025, holding approximately 20.1% share (Data Intelo).
- Germany, France, and the Netherlands collectively accounted for more than 55% of European market revenue in 2025 (Data Intelo).
- Asia-Pacific is forecast to grow at a CAGR of 23.8% through 2034, the highest rate globally (Data Intelo).
- Latin America is growing at a CAGR of 17.6% through 2034 (Data Intelo).
- MEA (Middle East and Africa) is growing at a CAGR of 16.2% through 2034 (Data Intelo).
- Greenwashing detection AI market share by region, 2025 (Data Intelo):
| Region | Share |
| North America | 38.7% |
| Europe | 31.4% |
| Asia Pacific | 20.1% |
| Latin America | 5.3% |
| Middle East and Africa | 4.5% |
- Modern greenwashing detection systems achieve statistical accuracy rates exceeding 87% in controlled benchmarks, compared to approximately 61% for earlier rule-based systems (Data Intelo).
- The cost of deploying LLM-based ESG analysis has fallen by more than 70% between 2022 and 2025 (Data Intelo).
- The Software sub-segment is projected to grow at a CAGR of 21.4% through 2034 (Data Intelo).
- More than 85 distinct vendors globally offer some form of AI-assisted greenwashing detection or ESG claims verification functionality as of early 2026 (Data Intelo).
- Services revenue is growing at a CAGR of 18.2% (Data Intelo).
- The on-premises segment is growing at a CAGR of 15.7% (Data Intelo).
Environmental Impact and Related Risks
- The global share of companies linked to both greenwashing and biodiversity risks has doubled over the past five years, from 3% in 2021 to 6% in 2025 (RepRisk).
- Biodiversity now accounts for 38% of all environmental risk incidents tracked (RepRisk).
- Incidents linked to biodiversity-related greenwashing risks have tripled compared to last year (RepRisk).
- Pollution accounted for 33% of environmental risk incidents recorded by RepRisk in the year ending June 2025 (RepRisk).
- Waste accounted for 17% of environmental risk incidents tracked by RepRisk in the past year (RepRisk).
- Five countries—the United States, Brazil, Italy, Indonesia, and France—account for 31% of all biodiversity-related incidents recorded (RepRisk).
- Europe’s print, paper, packaging and forestry sectors support more than 640,000 jobs across 112,000 businesses (Two Sides via PostEurop).
Greenwashing No More
Greenwashing isn’t a niche problem anymore. It shows up in nearly every sector, confuses shoppers who are trying to do the right thing, and drags honest brands down with the pretenders.
For businesses, the risk is real. Genuine sustainability can earn goodwill. Getting caught faking it can cost you customers and your reputation in one go.
Regulators are catching on, too. In the EU, new rules targeting vague and unproven green claims apply from 27 September 2026, though enforcement still varies by country. Better to lead with transparency now than wait for someone to force the issue. The takeaway for marketers is simple. Make claims you can prove, and build trust the slow way.
Need help building an authentic strategy that keeps your brand clear of greenwashing in the Philippines? As a digital marketing agency in the Philippines, Spiralytics can help keep your campaigns clean and honest. Contact us today to find out more.
FAQs
Greenwashing is when a company portrays itself as more environmentally friendly than it actually is, using buzzwords, earthy imagery, or misleading labels to gain the benefits of appearing sustainable without doing the real work. The term blends “green” with “whitewashing,” meaning painting over what a company would rather consumers not notice.
Greenwashing is widespread. A study of 3,574 companies with climate pledges found 96% fall short on at least one greenwashing risk indicator. Separately, 98% of 1,233 environmental claims analyzed could be categorized as greenwashing, and as many as 95% of consumer products marketed as green commit at least one form of greenwashing.
Greenwashing seriously erodes consumer trust. Around 91% of consumers believe at least some brands engage in greenwashing, 62% believed companies were greenwashing in 2025, up from 33% in 2023, and over half of UK consumers say they are prepared to boycott brands found to have made misleading green claims.
Common greenwashing examples in the fashion industry include brands marketing small “eco” collections while the rest of their range remains unsustainable, using partially recycled fabrics while labeling entire product lines as eco-friendly, and making vague sustainability claims without verifiable evidence. H&M, for instance, was criticized by the Norwegian Consumer Authority for misleading marketing around its Conscious Collection.
The Federal Trade Commission cracks down on greenwashing through its Green Guides, codified at 16 CFR Part 260, which outline how environmental marketing claims must be substantiated under Section 5 of the FTC Act. Companies that make false or misleading green claims can face civil penalties of up to $53,088 per violation, and the FTC held a workshop on recyclable claims in 2023 as part of a broader review of the guides.
Consequences include major financial penalties and reputational damage. Volkswagen paid an estimated $14.7 billion for falsifying emissions data, Goldman Sachs paid $4 million to the SEC for ESG misstatements, and Keurig Dr Pepper agreed to a $1.5 million civil penalty for inaccurate recyclability claims. Consumer boycotts are also a significant risk.
Marketers should only make environmental claims they can substantiate with specific, verifiable evidence, avoid vague buzzwords, and never imitate certification logos they have not earned. The blog advises leading with transparency, as new EU rules from September 2026 will prohibit more than 50% of current green claims found in advertising.
The data shows that 98% of 1,233 environmental claims analyzed could be categorized as greenwashing, and 53% of green claims contain misleading or unfounded information according to the European Commission. Additionally, 38% of the claims analyzed were unverifiable future projections, and only 29% of companies provided supporting evidence.
Greenwashing undermines genuine sustainability progress by rewarding superficial claims over real action. According to Google Cloud data, 58% of North American executives admit their companies have overstated sustainability efforts. Only 36% of executives have tools to quantify sustainability efforts, and just 17% use those measurements to optimize results.
Greenwashing statistics reveal significant misleading communication in the oil and gas sector. In 2024, oil and gas accounted for the largest share of greenwashing cases globally, and 81% of Shell’s ads were found to be greenwashing even though 80% of its investment goes to oil and gas. The sector also showed a 23% co-occurrence of misleading communications risk and biodiversity risk.