Buyers avoid companies linked to greenwashing

Most people say they avoid brands that have been accused of greenwashing, according to a new global study.

This finding is based on a survey of 8,000 respondents from eight countries including the US and Germany from the Nuremberg Institute for Market Decision (NIM) in Germany, first reported by Handelsblatt, a business-focussed newspaper. The study also surveyed 800 business leaders.

Around two thirds of people surveyed report buying from companies that advertise sustainability pledges.

Why it matters

Greenwashing is, in many ways, a serious risk. While there’s an element of self-reporting bias likely at play here with many consumers more swayed by price than environmental credentials, there are well-documented commercial risks for brands to consider.

Risks are not only reputational. Legislatures and regulators around the world including the UK and the EU are now targeting the practice which some researchers have claimed to be widespread.

For all of WARC’s sustainability intelligence, check out our Sustainability Hub.

The data:

• 72% of respondents agreed that they avoid businesses accused of making false sustainability/climate statements, otherwise known as greenwashing.
• 76% agree that claims are more credible if the brand either shows how those claims were calculated or have had them certified.
• 40% would like to see a state-ratified label given to proven climate friendly brands/products.
• 71% agree that cooperating with environmental organisations boosts credibility.
• Celebrity endorsements of climate credentials appear to be much less powerful with just 23% saying they would trust an endorsed claim. Despite this, 38% of companies surveyed have used a well-known personality to communicate sustainability.

Key quote

“Consumers are already punishing them even if they are just being accused of greenwashing” - Andreas Neus, Managing Director of the NIM.

Sourced from Handelsblatt, WARC