Avoiding greenwashing: genuine sustainability in construction

Greenwashing is a significant concern in today’s business landscape, especially in the construction industry – but how do you avoid it if you don’t know what you don’t know? Here are some of the most prevalent greenwashing tactics, the impact of these practices, and how to ensure genuine sustainability.

Greenwashing occurs when organisations invest more in marketing themselves as environmentally friendly than in implementing actual sustainable practices. This can be intentional or unintentional due to a lack of understanding of sustainability requirements. Regardless of intent, greenwashing can severely damage a company's reputation and trustworthiness.

There are common examples of greenwashing, such as making claims without concrete evidence. For instance, a company might advertise a product as "eco-friendly" without providing any certification or data to back up the claim. Another example is using fake or misleading certifications. This can include creating their own unofficial certification logos that look legitimate but have no real authority or standards behind them. Additionally, making over-generalised statements using buzzwords without providing specifics can also be misleading. Phrases like "all-natural," "green," or "sustainable" can be misleading if not properly defined or substantiated.

Greenwashing not only misleads consumers but also undermines the efforts of genuinely sustainable businesses. It creates scepticism and distrust, making it harder for consumers to identify truly sustainable products and services. Furthermore, regulatory bodies are increasingly cracking down on false sustainability claims, leading to potential legal repercussions for businesses involved in greenwashing. Examples such as the Corporate Sustainability Reporting Directive (CSRD) here in the EU has introduced stricter requirements for transparency, disclosure and accountability regarding environmental social and governance matter, replacing the outgoing Non-Financial Reporting Directive (NFRD).

Stan Veldhuis, a lawyer at ACM, shares his top five rules for making credible sustainability claims:

• Firstly, clearly state the sustainability benefits of your product or service and provide detailed information about what makes your product or service environmentally friendly.
• Secondly, substantiate your claims with up-to-date facts. Use data and evidence to support your sustainability claims, and make this information accessible to consumers.
• Thirdly, ensure comparisons with other products or companies are fair. Avoid misleading comparisons that exaggerate your product’s sustainability benefits.
• Fourth, be honest and specific about your company’s sustainability efforts. Transparency is key to building trust with consumers.
• Finally, use recognised standards like the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB) to foster transparency and trust. Adhering to these standards demonstrates a commitment to genuine sustainability practices.

Download our full guide to dive deeper into how to avoid greenwashing and implement authentic sustainable practices that will enhance your corporate reputation and trustworthiness.