Issue 2.2: The Cost of Greenwashing (And the Opportunity of Truth)

Why marketing’s obsession with looking good is costing us the chance to do good.

A story we all know too well

A brand launches its new sustainable line.

The packaging is earthy. The website says “conscious.” The campaign features wild landscapes and slow-motion shots of recycled fabrics.

But behind the scenes?

The product is shipped in plastic. The carbon offset claim is vague at best. And the “recycled” component? 10%—if that.

We’ve all seen it. Most of us have worked on something like it. And if we’re honest, we’ve probably let some of it slide because it got approved, it looked good, it “aligned with the brand.”

But here’s the thing: looking good is no longer good enough.

The world is paying attention and the backlash is accelerating.

Greenwashing is not just bad ethics. It’s bad strategy.

In 2023, H&M, ASOS, and Boohoo were all hit with regulatory probes or public outrage over misleading sustainability claims. The UK’s Competition and Markets Authority launched formal investigations into how these fast fashion giants were marketing “green” product lines with little to no substantiation. [¹]

Deutsche Bank’s asset management arm (DWS) faced raids from German authorities over inflated ESG claims, eventually leading to fines and reputational damage. [²]

Delta Airlines was sued for calling itself “carbon neutral”—a title largely based on questionable carbon offset schemes. [³]

These are not isolated PR crises. They are symptoms of a broken relationship between marketing and operational truth. And they carry consequences: trust erosion, legal risk, lost revenue, and internal cynicism.

The deeper issue: We’ve made sustainability cosmetic.

Marketing teams are under pressure to “tell the sustainability story.” But when that story isn’t matched by operational substance, we default to symbolic gestures:

• Swapping logos to green

• Highlighting token initiatives

• Launching “eco lines” while the core business remains unchanged

It’s branding without backbone. And it’s not fooling anyone anymore, especially Gen Z, who are twice as likely to call out performative sustainability as previous generations. [⁴]

So where do we go from here?

We don’t need perfect brands. We need honest ones. We need brave ones. We need brands willing to show the process, not just the polish.

And that begins with a new marketing posture: one that values truth over image, progress over perfection, and consequence over convenience.

The Marketing Truth Spectrum

Over the years, I’ve developed a mental model to help founders and leadership teams gut-check where their sustainability messaging really stands ,not in theory, but in practice. I call it the Marketing Truth Spectrum.

At the far left, we have greenwashing, where brands make sustainability claims with little or no substance behind them. It’s flashy, often shallow, and dangerously easy to execute when marketing is disconnected from operations. Yes, it might deliver a short-term boost in perception. But it comes with high legal and reputational risk. And when the truth emerges, which it always does, it erodes trust faster than it was gained.

Then there’s greenhushing, the opposite problem. These are companies that are actually doing the work but are hesitant to talk about it publicly. Maybe they fear scrutiny. Maybe they don’t feel they’ve done “enough.” The risk here isn’t backlash, but missed opportunity. Brands that greenhush often leave trust, goodwill, and differentiation on the table because they stay silent instead of owning their progress.

The next level is transparency. This is where things start getting real. Transparent brands are open about where they are on their sustainability journey: what’s working, what isn’t, and what they’re committed to fixing. It requires vulnerability. You have to admit you’re not perfect. But it’s this honesty that builds real trust. Customers, especially younger ones, don’t expect perfection. They expect clarity and accountability.

Then comes alignment. This is where marketing isn’t just telling a story, it’s reflecting reality. Operations, supply chain, product design, hiring practices, internal culture, they all line up with the brand’s sustainability message. You don’t have to spin anything, because the values are baked in. At this level, brand reputation becomes resilient. Loyalty deepens. You’re not reacting to criticism, because you’ve already anticipated it by living your values.

And at the far right of the spectrum, there’s leadership. These are the rare brands that don’t just align internally, they actively shape external change. They push their industries forward. They invest in new systems, challenge norms, influence public policy, and invite competitors to collaborate. Think Patagonia giving away its company. Think Tony’s Chocolonely publishing its sourcing model to inspire others. This level takes time. It takes conviction. But the cultural impact is unmatched.

Real-world brands doing it right

Allbirds publishes the carbon footprint of each product on its labels. Not because they’re perfect, but because they’re willing to own the journey, not just the destination.

Oatly, despite controversy, has remained transparent in publishing annual sustainability reports and breakdowns of environmental impact, good and bad.

Tony’s Chocolonely uses bold packaging and uncomfortable messaging to challenge the chocolate industry’s labor practices. They’re not greenwashing. They’re truth-telling.

These brands have something in common: they’re not afraid to show their work. That’s marketing leadership.

How to Rebuild Trust

If you’re in marketing and you want to lead your organization away from the quicksand of greenwashing, here’s where to start:

1. Audit your claims Run every sustainability claim by the operations team, the legal team, and, if you dare, a Gen Z intern.

2. Use specific language “Made from 60% post-consumer recycled plastic” beats “eco-friendly” every time.

3. Tell the full story Don’t just talk about the wins. Talk about what’s not solved yet. Show the roadmap.

4. Partner with real changemakers Not just influencers. NGO partners. Academic institutions. Circularity experts.

5. Turn marketing into a feedback loop If you hear customers calling out greenwashing, don’t get defensive. Invite them in. Use that friction to create better standards.

Closing thought: Truth scales

You can’t build a brand on image alone. Not anymore. Today’s customers and future employees will search for the receipts.

What you hide will erode you. What you reveal will transform you.

Marketing isn’t here to smooth the edges. It’s here to shine a light. And when that light hits reality, not illusion, that’s when change begins.

References

1. UK CMA Investigation into Greenwashing – GOV.UK

2. DWS ESG Raids – Bloomberg

3. Delta “Carbon Neutral” Lawsuit – Reuters

4. Gen Z & Greenwashing Report – First Insight