ESG

Greenwashing vs. Real ESG: Where’s the Difference?

Consumer trends are shifting. Today’s consumer is more conscious about the products they consume. This growing awareness has pushed brands to adopt new communication strategies aligned with these evolving values.

That’s where ESG (Environmental, Social & Governance) strategies come in—focusing on environmental responsibility, social contribution, and corporate governance. If you want to learn more about ESG and how it can be incorporated into a communication plan, you can read our detailed article here.

However, when ESG actions lack thorough research and substance, the outcome often resembles greenwashing more than genuine ESG practices.

What Do We Mean by Greenwashing—and How Can You Avoid It?

That’s what we’ll explore today.

What Is Greenwashing?

Greenwashing refers to the practice of portraying a company as environmentally responsible without actual substance behind the claims. It can involve:

  • Superficial “green” campaigns
  • Exaggerated claims without proof
  • Incomplete or vague ESG reports
  • Concealing the environmental impact of production

In the long run, greenwashing damages a company’s credibility and reputation.

Common Examples of Greenwashing

  • Unsupported claims: “We use sustainable materials” without explaining what that really means.
  • Distraction tactics: Highlighting a minor “green” feature while ignoring the overall environmental burden.
  • Vague language: Using terms like “eco-friendly,” “natural,” or “sustainable” without certifications or measurable data.
  • One-off actions: A tree-planting or recycling initiative is not enough to brand a company as green.
  • Eco-packaging: Highlighting environmentally friendly packaging while the rest of the supply chain remains unsustainable.

The Volkswagen Case (Dieselgate)

A classic example of how greenwashing can destroy a brand’s reputation—regardless of its size.

What happened?

In 2015, Volkswagen promoted its diesel cars as “clean” and “environmentally friendly,” claiming they met strict emissions standards.

In reality, the company installed illegal software in millions of vehicles that made the cars appear less polluting during official tests, while in everyday use, they emitted up to 40 times more nitrogen oxides (NOx) than permitted.

With this move, Volkswagen:

  • Falsely promoted environmental benefits through advertising
  • Deliberately hid the true environmental impact of its products
  • Exploited growing consumer sensitivity to “green” choices

The consequences of this greenwashing?

  • Over $30 billion in fines
  • A sharp drop in brand trust

How Can You Build a Genuine ESG Strategy That Inspires Trust?

1. Start from the inside out
Sustainability isn’t just a marketing concept. It must be reflected in your operations—from suppliers to management to employees.

2. Set clear goals and measurable KPIs
Your goals should be realistic and data-backed. For example: “Our company commits to reducing plastic packaging use by 40% by 2026.”

3. Communicate with transparency
Share data, reports, certifications. If you still have a long way to go, be honest—authenticity resonates.

4. Involve the entire organization
ESG practices shouldn’t be isolated actions—they should be embedded in the corporate culture to have real impact. That means the whole team should be engaged in the process.

5. Partner with independent bodies & organizations
Certification by recognized organizations (e.g., ISO) strengthens your credibility and builds trust with your audience.

So while greenwashing may offer short-term gains, a genuine ESG strategy builds trust, brand loyalty, and long-term success.

Remember: consumers today seek honesty, transparency, and continuous improvement.

Want to avoid the pitfalls of greenwashing and build an authentic ESG plan for your business?
Our team at Pylarinos Advertising, based in Thessaloniki, specializes in crafting communication strategies aligned with ESG practices.

Contact us here to design your next step toward a sustainable and trustworthy business presence.

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