Understanding the effects of greenwashing in fashion
As sustainability takes centre stage in retail and fashion, brands are facing increased scrutiny over how they market their green credentials, particularly amid rising concerns about greenwashing.
One of the biggest problems in the fashion industry right now is greenwashing, which is becoming worse as fast fashion labels try to project an image of being environmentally friendly. While many fashion brands are genuinely making progress, some misleadingly use the term “eco-friendly” for marketing purposes without achieving any real environmental improvements.
This article aims to enlighten retail managers and directors about the consequences of greenwashing and provide them with practical tips on how they can avoid it.
The environmental impact of fashion retail
The environmental impact of fast fashion is sky-high. The sector is to blame for significant pollution, water waste, and carbon emissions. While the fashion industry is a $2.4 trillion global machine for which 300 million people work, it has long escaped scrutiny over its impact on the environment.
Never Miss a Retail Update!However, as awareness grows, so does consumer demand for ethical goods. Consumers around the world are now prepared to pay a premium for socially responsible products. Fueled by this surging demand, some fast-fashion retailers have attempted to take advantage by using greenwashing practices.
What is greenwashing in fashion?
What is greenwashing in fashion? Basically, it means when a fashion company tricks consumers by overinflating or simply making up how green they are. These strategies vary from unclear terminology to partial reporting on green projects.
A 2021 report from the Changing Markets Foundation found that 60% of sustainability claims from fashion brands are false. In addition, The Greenpeace Greenwash Report also found that many fashion labels are lying about their carbon footprints, using imprecise language or selling token green collections that make up only a fraction of their inventory.
Greenwashing detracts from genuine retail sustainability practices and misinforms consumers who want to ensure they are making responsible purchases.
Types of greenwashing in retail
As sustainability takes a more central role in fashion, some brands are cutting corners, using deceptive practices to look greener and cooler than they really are. These dishonest tactics are classified as greenwashing in fashion. Ultimately, the UCEM greenwashing guide notes that this is not only greenwash but also unethical, and undermines consumer confidence while killing real sustainable advances.
Some of the most common greenwashing tactics employed by fashion brands and retailers are:
- Greenlighting
- Greenhushing
- Greenrinsing
- Greenlighting
- Greenshifting
- Greencrowding
- Deceptive imagery
- Offsetting
- Selective promotion
Greenlighting
This is the strategy of highlighting one green product or green effort while ignoring the rest of the business’s negative environmental impact. A company, for instance, may claim it is all about recycled materials in one product line, and it is “business as usual” in the rest of the company’s production lines. It’s the old trick of illuminating the positive while distracting from the bad.
Greenhushing
Greenhushing is when a company intentionally communicates less or withholds information about its sustainability actions, in some cases, to prevent backlash or scrutiny if the company fails to meet its ambitious goals.
This silence can be a red flag indicating that the vendor is probably not as transparent or sure of their claims as you would normally want.
Greenrinsing
Greenrinsing is when sustainability targets are changed frequently, especially before goals have been met in the past. It’s a kind of goalpost-shifting that forecloses accountability. A brand could set ambitious environmental targets, only to water them down or swap them for new ones when they become inconvenient or unachievable.
Greenshifting
This is the point at which a company passes its burden of sustainability on to the consumer. Rather than fixing harmful practices, they’re saying it’s the shopper’s fault for not buying more things to make their lives more ‘eco-friendly’. This strategy ignores the role of the company in contributing to overproduction, unethical sourcing, and poor labour conditions.
Greencrowding
Greencrowding occurs when a brand insists it can’t address sustainability by itself and needs the industry to act together. Collaboration is important, but it is at best disingenuous to use it as an excuse to not act. It’s often a cover for more inaction.
Deceptive imagery
Think of luscious green backgrounds, leaves, or earth-tone packaging, and a lack of evidence to support the claims behind the eco-messaging. Couple that with nebulous terms such as “eco-friendly” and “green”, and you’ve got deceptive imagery. This strategy appeals to feelings, not to the environment.
Offsetting
Though carbon offsetting can be a component of a larger sustainability strategy, some brands use it too much as a crutch to avoid confronting their true emissions. The risk is that offsets become a licence to pollute rather than a means of reducing environmental harm at its source.
Selective promotion
The best-known example of this kind of selective promotion is Zara’s “Join Life” collection. It promoted environmentally responsible production and materials, which helped it gain notice and praise. But that handful was only a fraction of Zara’s overall output, the majority of which still adhered to fast fashion’s traditional, high-flow, high-waste model.
Focusing on small solutions and ignoring wider system issues can create public misperceptions about just how sustainable a brand or product actually is.
These tactics prove how sneaky and complex greenwashing has become. What these tricks have in common is that, once revealed, they can help consumers make better decisions based on facts, not fluff.
Why greenwashing is a risk that fashion brands can’t afford
Greenwashing isn’t just unethical, it’s dangerous for both consumers and brands.
Negative effects on consumers
- Misinformation: Consumers are fooled into backing companies that aren’t compatible with their values.
- Erosion of trust: People are becoming more and more sceptical of the fashion business due to the constant barrage of misleading statements.
- Difficult for consumers to discern authentic claims: The fashion industry is plagued by greenwashing, which makes it difficult for genuine sustainable and ethical businesses to get noticed.
Negative effects on fashion brands
- Legal risks: Green claims made by fashion brands can be sued and investigated, as happened with ASOS and Boohoo, which were accused of greenwashing.
- Reputation damage: Negative customer sentiment and press attention can destroy years of brand goodwill.
- Sales decline: A 2023 study discovered that scepticism about green claims decreased consumer purchasing intent.
- Upstaged efforts: Amidst the clamour of other brands’ overly optimistic or deceptive sustainability statements, real efforts run the danger of being ignored or disregarded.
Greenwashing is becoming more of a brand liability, not a strategy.
Tips for fashion retailers to avoid greenwashing
So, how can the fashion industry avoid “greenwashing” and how can fashion brands be truly ethical and establish honest, open policies?
Third-party certifications
One way fashion brands can build credibility is by acquiring third-party certifications. These certifications, provided by trusted organisations like the Global Organic Textile Standard and Fair Trade, are evidence that sustainability claims, even in luxury retail’s sustainability efforts, are rooted in actual action. And now, with CSR and ESG imperatives becoming mainstream in the business environment, these third-party validations have more credibility than ever.
They also help consumers navigate through marketing hype so they can feel secure that the products they are buying meet a proven environmental or ethical standard.
However, simply possessing these certifications is insufficient; retailers must prominently display them on product packaging and marketing materials, providing a clear explanation of each certification’s significance. According to UK government guidance, it can also act as a robust defence against greenwashing claims.
Transparency and accountability
Transparency is not just a buzzword; it is the cornerstone of consumer trust. Businesses must be transparent about their internal operations.
- So let’s start with a transparent value chain. Establish a benchmark for your emissions across the board, especially in your highest-emitting areas of business. According to the World Economic Forum’s report on supply chain, emissions should be quantified with the desired level of detail, applying a finer granularity to Tier 1 suppliers or for commodities that have the highest environmental impact.
- Specify where your materials, products or services are coming from.
- Clarify your production processes, how your products are made, and who is making them.
- Stay away from general or vague terms such as “natural” or “eco-friendly” unless you can back them up with data.
- Establish targets for reducing your environmental footprint and regularly report on your progress.
This level of honesty is no longer optional: it’s what consumers expect. It also helps your brand stand apart from those who rely on surface-level green marketing.
Take advantage of technology
Technology is one of the most potent weapons fashion retailers can deploy to tackle greenwashing and enhance sustainability in the retail industry. Digital systems and artificial intelligence can assist in monitoring carbon emissions, tracking supply chain activity and manufacturing process, and using data to make decisions about how sourcing and production are done.
Innovative solutions, such as sustainability software, enable fashion brands to get a true read on their environmental impact and pinpoint inefficiencies, creating routes to diminish waste. For example, data platform Provenance, is helping retailers like Holland & Barrett and Ocado combat misleading environmental claims. Provenance utilises AI to scan marketing materials, verify claims against certification databases, and provide a transparent data trail for consumers. This demonstrates how tech is being used to fight back against false environmentalism and provide more honesty and transparency.
By embracing these digital tools, retailers can ensure daily practices are in sync with their sustainability messaging, ultimately building that trust and ensuring their business continuity.
Focus on reduction
The most sustainable decision a fashion brand can make is to produce less, rather than focusing on flashy, short-lived “green” collections or trendy recycling campaigns.
Focusing on less means targeting the overall number of garments in circulation, which undeniably reduces environmental impact and ultimately how much we all consume at a crazy fast fashion pace.
Brands may also want to experiment with new business models, such as resale platforms, clothing rental, and repair services. These initiatives stimulate longer product life, reduce waste and promote a circular economy model.
Long story short, sustainability is a case of less is more.
Honest communication
Stretching the truth in the rush to market green projects can be too tempting. But today’s consumers are smart, and they care more about honesty than perfection, making it harder for greenwashing fashion brands to hide behind vague promises or flashy PR.
Fashion retailers should be candid about their sustainability challenges, what they have achieved, and what they’re working on next, instead of spreading magnificent stories. Making an impact is possible when you speak honestly. Get to know your audience better by letting them in on the action and keeping them updated.
Working with ethical fashion influencers can also spread this message in a believable and down-to-earth manner. Influencers add credibility and an engaged following, humanising your brand’s sustainability narrative.
In today’s market, transparency and authenticity in ethical fashion and sustainability trends in retail aren’t just best practices; they are your single most valuable brand assets.
Final thoughts
Greenwashing in fashion poses a significant threat to the industry’s positive progress in environmental stewardship and ethical behaviour. These actions don’t just slow down real change; they mislead consumers, chip away at their trust in brands, and muddy the waters for true sustainability efforts.
Retailers should refrain from making symbolic gestures and instead focus on delivering clear, visible, credible, and measurable sustainability initiatives to their customers.
Eliminating greenwashing is crucial for long-term value generation, not just for compliance or risk management purposes. In today’s sustainability-focused market, sustainable fashion brands that lead with honesty and responsibility not only gain customers’ trust but also have the ability to withstand any challenges that may arise. A retailer’s long-term commitment to sustainability pays enormous dividends, both in terms of customer satisfaction and the health of our world.
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