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ACCA Applied Knowledge · Business and Technology · Sustainable business practices

Which of the following is the best example of 'greenwashing'?

Greenwashing is marketing a product or business as environmentally friendly using vague or misleading claims while making no real reduction in environmental impact. The other options involve genuine actions or assured reporting, so they do not mislead stakeholders about the company's actual performance.

  1. AA company publishes an independently assured sustainability report with measured emissions data
  2. BA company markets its products as 'eco-friendly' with vague claims while making no real reduction in its environmental impactCorrect
  3. CA company invests in renewable energy to reduce its carbon footprint
  4. DA company sets targets for reducing waste and reports progress each year

Explanation

Greenwashing is creating a misleading impression of environmental responsibility through marketing without genuine underlying action. The other options describe real, evidenced actions or transparent reporting, so they are not misleading.

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