How businesses can communicate sustainability claims without ‘greenwashing’
Summary
The document outlines the risks of 'greenwashing'—making misleading environmental claims—and 'greenhushing'—staying silent about genuine progress due to fear of criticism. It highlights the EU's EmpCo directive, which bans vague terms like 'eco-friendly' and 'green' without proper evidence. The guide advises companies to use verifiable data and transparent strategies for claims regarding net zero, carbon neutrality, and energy efficiency to maintain stakeholder trust and avoid legal risks.
Key insights
- The European Union's Empowering Consumers for the Green Transition Directive (EmpCo) prohibits the use of general environmental terms such as "eco-friendly," "green," or "carbon-friendly" unless they are supported by proper evidence or substantiation.
- Specific sustainability claims require detailed transparency to avoid being classified as greenwashing under EmpCo: 'net zero' claims need a verified strategy and timeframe; 'carbon neutral' claims must explain the role of offsets; 'biodegradable' claims must specify conditions and timeframes; and 'energy efficient' claims should provide measurable figures or benchmarks.
- Greenwashing can be conveyed through non-textual elements, such as the use of green fonts or imagery of forests and leaves, which can create a misleading impression of environmental friendliness even if the accompanying text is not explicitly false.
- There is a rising trend of 'greenhushing,' where companies suppress information about their sustainability achievements to avoid scrutiny. The South Pole 2023/24 Net Zero Report indicates that 58% of surveyed companies across 12 countries and 14 sectors are intentionally reducing their climate communications.
- Consumer exposure to sustainability messaging is declining; GlobeScan’s Healthy & Sustainable Living Report 2025 found that only 36% of consumers saw sustainability messaging from brands in 2025, compared to 49% in 2023.
Cite the original document
- APA
- Forum, E. R. W. E. (2026). How businesses can communicate sustainability claims without ‘greenwashing’. World Economic Forum. https://www.weforum.org/stories/climate-action/how-businesses-can-communicate-sustainability-claims-without-greenwashing/
- Chicago
- Forum, Eleanor Ross, World Economic. How businesses can communicate sustainability claims without ‘greenwashing’. World Economic Forum, 2026. https://www.weforum.org/stories/climate-action/how-businesses-can-communicate-sustainability-claims-without-greenwashing/.
- Wikipedia
- {{cite report |last1=Forum |first1=Eleanor Ross, World Economic |title=How businesses can communicate sustainability claims without ‘greenwashing’ |publisher=World Economic Forum |date=13 October 2026 |url=https://www.weforum.org/stories/climate-action/how-businesses-can-communicate-sustainability-claims-without-greenwashing/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{forum2026how, author = {Forum, Eleanor Ross, World Economic}, title = {{How businesses can communicate sustainability claims without ‘greenwashing’}}, institution = {World Economic Forum}, year = {2026}, month = oct, url = {https://www.weforum.org/stories/climate-action/how-businesses-can-communicate-sustainability-claims-without-greenwashing/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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