Over half (54%) of consumers say they would stop buying from a company if they were found to have been misleading in their sustainability claims, according to new research from KPMG UK.
The survey, which polled over 2,000 UK adults, found that consumers are widely aware of greenwashing, with almost half (45%) stating they had heard of the term.
The most common examples of greenwashing identified by consumers included false or misleading claims about the sustainability of specific products (76%), exaggerated or unsubstantiated sustainability credentials (73%), misleading commitments on net zero (66%), inconsistent ethical policies (60%), and missing sustainability targets (39%).
The research also found that consumers are taking action against companies that they believe are greenwashing. Almost a fifth (18%) of respondents said they had already changed their mind about a company due to misleading green claims, and over half (54%) said they would stop buying products and services from companies found to have greenwashed.
“Companies keen to capitalise on the growing interest in sustainable products should be taking a measured approach,” said Richard Andrews, Head of ESG at KPMG UK. “Overselling sustainability credentials risks losing customers as well as the reputational damage that will follow.”
“While this might often be unintentional, understanding the data behind any sustainability claims is key, as well as ensuring that data has also been verified, if brands are serious about avoiding any greenwashing risks,” he continued.
The research also highlights the need for greater clarity and consistency in sustainability labelling. A third (33%) of respondents said they were sceptical of green labels and sustainability claims, while a similar amount (28%) admitted to struggling to know what products were green or sustainable due to inconsistent labelling.
The study’s findings come at a time when there is growing scrutiny of green claims made by companies. In the last year alone, allegations of greenwashing have been levied against several major companies and public figures, including Amazon, HSBC, Deutsche Bank, and even the mayor of London, Sadiq Khan.
To combat this, in the UK, the Advertising Standards Association (ASA) has called for stricter regulation on green claims, while in Europe, legislation has been proposed to improve product labelling and durability and curb deceptive claims.
“The results present a catch-22 situation for both companies and their customers,” Andrews continued. “On the one hand, customers are prepared to stop buying something if it has been linked to greenwashing, but they also admit that they struggle to navigate the labels currently out in the market. Meanwhile, companies are investing time and money verifying their efforts, but awareness of some of the environmental accreditation schemes remains very low.
“What is clear, is that any signs of greenwashing will diminish trust further, so it is imperative that companies continue to ensure all claims can be evidenced and that as new regulations are introduced, they are understood and adhered to. The risks of overselling being ‘greener than green’ are too high.”
The energy sector (58%) was seen as the most likely to engage in greenwashing, with the fashion industry closely following (57%). However, this is reversed for younger respondents (18-24-year-olds), who deem the fashion industry as the most likely to greenwash (66%) and are slightly more positive about the energy sector (50%). Transport and automotive (51%) and grocery, food and agriculture (47%) were also seen as at risk of greenwashing by a large number of consumers.
Next read: Top 5 ways to avoid Greenwashing accusations
