What does the term "greenwashing" refer to in sustainability practices?

The term "greenwashing" refers to misleading claims about sustainability performance or alignment with Environmental, Social, and Governance (ESG) standards. Companies often use greenwashing to project an image of environmental responsibility without making substantial efforts to improve their practices. This can occur when organizations present their products or practices as more sustainable than they really are, leveraging marketing strategies that emphasize environmental benefits while downplaying or obscuring negative impacts.

In contrast, accurate representation of environmental impacts, transparent accounting of carbon emissions, and comprehensive sustainability reporting are practices that contribute positively to sustainability goals and build genuine trust with stakeholders. These practices reflect an organization's commitment to transparency and accountability in their sustainability efforts, which is the opposite of greenwashing.