Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Greenwashing

What it is:

Greenwashing is the act of misleading customers and potential customers into believing that a product or service is environmentally friendly.

How it works (Example):

Let's say Company XYZ produces a new line of plastic food containers. It labels the containers "tree friendly" because they are not made from wood or forest products. This creates the perception that the company is not harming nature to make the food containers, when in fact it is using petroleum products that many argue are more harmful to the environment. Company XYZ is attempting to greenwash its products.

Why it Matters:

Greenwashing is deceptive advertising often intended to increase sales rather than inform customers. Additionally, greenwashing often covers up activities that are in fact harmful to the environment. There are many ways to greenwash, and it is up to consumers to think carefully about a company's claims.