A few days ago, the sentence for what is one of the biggest cases of greenwashing in recent European history was known: dieselgate. One year and nine months of probation and a fine of 1.1 million euros is the sentence imposed on the former general director of Audi, Rupert Stadler, for having equipped 11 million engines with software capable of making them appear less polluting in the laboratory and road tests.
"It's like with scams: in the short term, you win, but in the long run the consequences can be in the millions," warns Jordi Oliver i Solà, executive director of the consulting firm Inèdit Innova. Oliver's reflection goes beyond the possible penalty imposed by a judge and refers to "reputational risks", with consequences such as "loss of leadership, flight of investors, fall in shares on the stock market, discredit...".
Despite these risks, greenwashing is an established practice. According to a 2014 European Commission study, 75% of the products on the market positioned themselves associating themselves with sustainability. Another 2020 study highlighted that more than half of the commercial messages analyzed were empty, misleading and unfounded, and 40% had no foundation. "With society's greater environmental awareness, cases of greenwashing have been increasing," says Jaume Enciso, coordinator of the choral work Alerta greenwashing. Ecolaundering in Spain.
Green image laundering occurs in both the private and public sectors. "Governments practice this with their long-term policies, procrastinating in the implementation of measures," explains Oliver. The expert also points out that these practices are not always intentional. “There are companies that are starting out and, as a result of ignorance, they end up doing greenwashing unintentionally”, admits the executive director of Inèdit Innova.
One of the most common formulas for washing a green image is to confuse the consumer. “They take advantage of the legality using misleading claims,” says Enciso. Oliver makes the case for milk cartons: “They are a festival of certifications and affirmations. In each package there is a bombardment of environmental messages, often confusing, that cannot be verified or allow comparison with other brands”.
According to the CEO of Inèdit Innova, the most prone sectors are those "most exposed to pressure due to their greatest contribution to climate change, be it regulatory or citizen, and that require very profound changes". This is the case of the sectors linked to fossil fuels. Recently, the European consumer organization BEUC and 22 of its organizations, including the Spanish ones Asufin, CECU and OCU, have filed a complaint with the European Commission and the network of consumer protection authorities (CPC) about the "misleading claims" around the green rate of 17 European airlines, including the Spanish Vueling and Volotea.
The UK has made headlines for banning, through the UK Advertising Standards Authority, the publication of newspaper, television and street billboard advertisements for the oil companies Shell, Repsol and Petronas International because they "misled" the public. public about the climate benefits of their products. In this sense, Jaume Enciso laments that "in Spain the legislation is very lax compared to other countries." Recently there have been announcements to toughen the regulations. One of them has come from the hand of the supervisor of the European markets, ESMA, which has prepared a report in which it warns of the danger of contagion in the markets of a possible greenwashing scandal and has transferred its concern to the European Commission to regulate it in 2024.
