Page 50 - Banking Finance December 2023

ARTICLE

A classic example is Volkswagen, who admitted
to cheating emissions tests by fitting various
vehicles with a "defect" device, software which
could detect when it was undergoing an
emissions test and altering the performance to
reduce the emissions level. All of this was while
it was touting the low-emissions and eco-
friendly features of its vehicles in marketing
campaigns. In actuality, these engines were
emitting up to 40 times the allowed limit for
nitrogen oxide pollutants

Impacts of Greenwashing
exaggerate the positive environmental impact of their
Greenwashing can have several negative impacts on various
products, or highlight a small eco-friendly aspect of their
stakeholders, including consumers, the environment,
operations while downplaying or ignoring other negative
competitors, and the reputation of companies involved.
environmental practices. The goal of greenwashing is to
Some of the key impacts of greenwashing include:
attract environmentally conscious consumers and improve
the company's reputation without making substantial
changes to their actual environmental practices.

How Greenwashing is being done:

Labelling a product as "natural" or "green" without any
evidence to support these claims

Advertising a product as "eco-friendly" while ignoring
its significant negative environmental impacts
Using images of nature or environmentally friendly
symbols in advertising campaigns without substantiating
the claims
Highlighting a minor environmental improvement while
diverting attention from larger environmental concerns
Greenwashing misleads consumers into believing that
Promoting a single positive aspect of a product while they are making environmentally responsible choices
neglecting to mention its overall environmental when, in reality, they might be supporting companies
footprint with questionable or unsustainable practices.
Companies that engage in greenwashing divert attention
For example, Dabur's "Natural" Personal Care
and resources away from truly sustainable practices.
Products: Dabur, a consumer goods company, has
faced criticism for labelling its personal care Greenwashing often involves misrepresenting a
product's or company's environmental impact. This can
products as "natural" or "herbal" without
result in consumers unknowingly supporting products or
providing adequate evidence of the natural
practices that contribute to pollution, resource
ingredients used. Some of its products were
depletion, and other environmental issues.
found to contain synthetic ingredients, raising
concerns about the accuracy of its claims Companies that rely on greenwashing may resist making
meaningful improvements to their products or practices.

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