Greenwashing in the Sustainable Economy
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| Pages: | 81 : 90 |
| Abstract: | Greenwashing constitutes a significant challenge to market transparency and consumer protection, referring to the presentation of a company’s or product’s environmental performance in a manner that is more favourable than warranted by available evidence. The literature identifies several manifestations, including vague or inadequately substantiated claims, the omission of relevant information, the use of misleading symbols, and the selective disclosure of environmental performance. TerraChoice (2010) and the European Commission (2021) indicate that insufficient evidence, vagueness, and the limited verifiability of environmental claims are among the most prevalent forms of greenwashing. Against this background, recent regulatory developments in the European Union, the United States, the United Kingdom, Australia, and Canada increasingly emphasise the substantiation, accuracy, and transparency of environmental claims. This study examines these developments through a case study of Fairphone, assessing the extent to which its corporate practices and sustainability communication mitigate the risk of greenwashing. The analysis highlights the use of measurable indicators, annual reporting, external verification, disclosure of methodological limitations, and acknowledgement of targets that have not been fully achieved. Fairphone also avoids absolute claims regarding climate neutrality and provides transparency concerning the book-and-claim mechanisms applied to the sourcing of certain materials. The findings suggest that Fairphone represents a comparatively well-substantiated approach to environmental communication, while remaining subject to environmental impacts and potential risks of selective disclosure. The case underscores the importance of verifiable evidence, transparency, and explicit recognition of limitations in establishing the credibility of sustainability claims. |
| JEL classification: | M31, Q56, D18, K32 |
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M31, Q56, D18, K32
