Greywashing: Why Green Companies Seem Grey and What They Can Do to Change Their Image

Author
Crystal Crawford Nielsen, Arthur van Buitenen
Source
Pleon’s Corporate Social Responsibility Practice Group and University of Amsterdam Business School
Publisher
Pleon’s Corporate Social Responsibility Practice Group
Publication date
October 2009
Type
Reports
Category
Environment/Climate Change
Managing Corporate Responsibility
Discipline
Environmental Management
Language
English
Free/Pay for content
Pay-for-content
 
Companies poor reporting on Green initiatives is creating a new phenomenon: Greywashing. Therefore they create the perception that their business isn’t sustainable. The assumption that companies are Greenwashing, and spinning their products and policies as environmentally friendly is the exact opposite in reality.

This is one of the key findings in a research study by the University of Amsterdam Business School (ABS) and Ketchum Pleon on how companies report and communicate their efforts and initiatives in sustainability and addressing climate change.

The authors identified four main causes why companies seem grey but they are actually green:
  1. In their communications and reporting, companies do not acknowledge the business risks associated with climate change. They mainly speak in terms of future problems instead of addressing the sustainability risks they face today;
  2. In addition, their reporting on green initiatives and efforts are too technical and statistical;
  3. Their communications about green initiatives do not reach the right target audience. It is mainly focused on shareholders and investors and not on the actual consumer that creates the green/grey perception of a company;
  4. Finally, the companies green initiatives are not being developed into viable business products and opportunities.