The True Cost of “Greenwashing”: How to Spot Fake Sustainable Brands

November 12, 2025

Everywhere you look, brands are talking about being green, eco-friendly, and sustainable. But here’s the uncomfortable truth — not all of them mean it. Some companies exaggerate or even fake their environmental claims just to attract customers who care about the planet. This misleading practice is called greenwashing.

The term was first used in the 1980s, but today it’s more relevant than ever. According to a European Commission study, 42% of “green” claims made by companies were exaggerated, false, or deceptive. That means nearly half of the “eco-friendly” labels you see could be pure marketing — not reality.

So, what’s the real cost of greenwashing? It goes far beyond money. It damages trust, slows down genuine sustainability progress, and leaves consumers confused about who’s truly trying to make a difference.

The Real Damage Behind Greenwashing

At first glance, greenwashing seems harmless — just a marketing trick. But in truth, it’s a serious problem. When companies claim to be sustainable without real action, they steal attention and funding from those who actually are.

Think of it this way:

  • Real sustainable businesses invest in renewable energy, ethical production, and recyclable packaging.
  • Greenwashers spend their budget on advertising campaigns and vague slogans like “eco-conscious” or “planet-friendly.”

The impact is massive. The Global Sustainability Study 2022 found that 85% of consumers have become “greener” in their purchasing habits. Just three or four years ago, you’d only encounter a handful of people who truly cared about the environment. A simple experiment on Callmechat, conducted with strangers, showed that nearly 80% of people worldwide are already taking environmental concerns seriously. About 47% are taking appropriate action to improve the environment.

Why Do Companies Do It?

It’s simple: profit.

Sustainability sells. Today’s consumers, especially Millennials and Gen Z, prefer brands that reflect their values. Studies show that two out of three shoppers are willing to pay more for sustainable products. For corporations, pretending to be eco-friendly is cheaper and faster than transforming supply chains, redesigning packaging, or reducing emissions.

Greenwashing offers an easy shortcut — at least in the short term. But eventually, it backfires. When the truth surfaces, companies face lawsuits, customer backlash, and lost credibility. Just look at major cases where brands were exposed for making false “biodegradable” or “carbon-neutral” claims — their reputations didn’t recover easily.

How to spot greenwashing — quick checklist

Watch for these red flags. They’re practical and fast.

  • Vague language. Words like “eco-friendly”, “green”, or “natural” without specifics are suspect. Ask: which impact is being reduced — carbon, water, chemical use? If no metric is cited, be wary.
  • Hidden boundaries. Claims often focus on a tiny part of a product’s life cycle (e.g., “made with recycled bottle caps”) while ignoring major impacts like production emissions or disposal. This is called scope shifting.
  • No proof provided. Reliable claims are backed by data, third-party certification, or transparent methodology. If a brand offers only buzzwords and no evidence, it should raise questions. Around 40% of claims in the EU review lacked supporting evidence.
  • Overuse of labels. A high number of self-made logos or vague badges can be misleading. Independent, recognized certifications are more trustworthy than a custom “green” seal designed by the brand.
  • Cherry-picked metrics. Watch for companies promoting a single positive metric while remaining silent on others that matter more (e.g., highlighting water saved but not CO₂ emissions).

Questions to ask before you buy

Make a habit of asking — quietly or out loud:

  • What specific problem is this product solving?
  • Is there independent verification?
  • What’s the full life-cycle picture (materials, manufacturing, use, disposal)?
  • Are trade-offs acknowledged? No product is perfect.

Companies that answer clearly and provide data are more likely to be genuine.

Supporting Truly Sustainable Brands

Spotting fake claims is only half the battle. The other half is supporting the companies doing it right. True sustainable brands:

  • Share detailed, measurable data about their supply chain.
  • Partner with local communities to reduce environmental harm.
  • Continuously improve their practices instead of relying on slogans.

Look for honesty. Look for numbers. Look for proof.

And remember — sustainability isn’t about perfection. It’s about progress. The most responsible brands admit where they fall short and show how they plan to improve.

Tools and signals of credibility

Look for recognized standards and audits. Independent labels, life-cycle assessments (LCAs), and transparent reporting are strong signs. Keep in mind: not every sustainability label is equal. In the EU there are hundreds of labels with widely varying transparency. A credible brand will link to the certifier and the underlying evidence.

Final Thoughts: Choose Awareness Over Appearances

Greenwashing might look harmless, but it’s a powerful barrier to real environmental progress. Every misleading claim slows the movement toward a cleaner, fairer future.

As a consumer, you hold more power than you think. The next time a brand calls itself “eco-friendly,” pause. Ask questions. Read labels. Search for facts.

True sustainability doesn’t need glossy words — it shows itself in action, transparency, and measurable impact. The planet doesn’t benefit from promises. It benefits from proof.