You know, that fun little practice where companies enhance - or straight-up fabricate - the environmental impact of their products and services. According to the financial think tank Planet Tracker, greenwashing has become so sophisticated that it's now taken many different forms.
But don't worry, Planet Tracker has identified six types of greenwashing for us. So, let's take a closer look, shall we?
First up, we have greencrowding. This is when a company believes that safety lies in numbers, so they hide in a crowd to avoid detection. It's like playing hide-and-seek, but instead of hiding behind a tree, they're hiding behind a bunch of other companies that are also engaging in greenwashing.
Next, we have greenlighting. This is when a company shines a spotlight on a tiny, insignificant green feature of their product or operation to draw attention away from their other environmentally damaging practices. Because let's be honest, who cares about all those pesky little details when you've got a shiny green feature to distract everyone?
Then there's greenshifting. This is when a company implies that the consumer is at fault for not being green enough. It's like when your mom blames you for not doing the dishes, even though she's the one who cooked the dinner in the first place.
Moving on to greenlabelling. This is when marketers call something "green" or "sustainable," but it turns out to be completely misleading. It's like when a diet soda claims to be healthy, but it's still just soda.
Next, we have greenrinsing. This is when a company keeps changing its sustainability targets before actually achieving them. It's like when you keep hitting the snooze button on your alarm, telling yourself that you'll get up and go for a run eventually, but you never actually do.
Finally, we have greenhushing. This is when corporate management teams under-report or hide their sustainability credentials to avoid investor scrutiny. It's like when you tell your boss that you're working on a project, but you're really just binge-watching Netflix in your PJs.
Now, I know what you're thinking - Pablo, how can we possibly combat this sneaky greenwashing?
Well, according to John Willis, Director of Research at Planet Tracker, we need to establish a global equivalence in ESG reporting. By being aware of the different types of greenwashing out there, we can make more mindful decisions as investors and consumers.
Let's stay vigilant and keep a close eye on those slippery greenwashers out there, because let's face it, we can't let them get away with their fancy game of environmental hide-and-seek, can we now?