How businesses can communicate sustainability claims without ‘greenwashing’

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on the World Economic Forum blog or enjoy below:

🗞️ Driving the news: Businesses face growing pressure to communicate sustainability progress accurately as European consumer-protection rules tighten scrutiny of environmental claims
• The World Economic Forum highlights how vague terms such as “eco-friendly,” “sustainable” and “carbon neutral,” as well as misleading green imagery, can create false impressions if unsupported by credible evidence
• Companies should substantiate claims with verifiable data, clear benchmarks and transparent explanations of their targets and methods

🔭 The context: The EU’s Empowering Consumers for the Green Transition Directive (EmpCo) strengthens protections against misleading environmental claims
• Businesses must be able to explain what their claims mean, which impacts they cover and how they are measured
• Broad claims, unsupported net-zero promises and unclear reliance on carbon offsets can undermine consumer trust and expose companies to regulatory risks

🌍 Why it matters for the planet: Credible sustainability communication helps consumers distinguish genuine environmental progress from greenwashing, supporting more informed choices and accountability
• However, fear of criticism can also lead to “greenhushing,” where businesses stay silent about legitimate climate action, potentially weakening momentum for broader change

⏭️ What’s next: Companies should establish robust checks on sustainability data before publication, involve relevant technical experts and ensure marketing claims reflect measurable performance
• Clear explanations of emissions reductions, targets, timeframes and remaining impacts can help businesses communicate progress without exaggeration or unnecessary silence

💬 One quote: “If credible companies retreat from the conversation, louder voices can dominate the sustainability landscape,” the article warns

📈 One stat: 58% — the share of companies surveyed across 12 countries and 14 sectors that were deliberately reducing their climate communications, according to South Pole’s 2023/24 Net Zero Report.

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