
What is Greenwashing? How to avoid it and build trust
5th September 2025, 2:32 pm
Sustainability is no longer a nice-to-have for SMEs. Customers, supply chain partners and employees all expect it. But with pressure mounting to demonstrate green credentials, many businesses are at risk of greenwashing. This means exaggerating or being vague when it comes to their environmental claims. Greenwashing can damage trust, harm brand reputation and sometimes lead to regulatory action. The good news? We have some practical tips to help you communicate your sustainability credentials confidently and credibly.
Tip 1: Understand sustainability terms
Sustainability comes with plenty of evolving terminology from “carbon neutral” to “net zero” and “recycled” to “recyclable”. Not understanding what they mean and, as a result, misusing them can put you at risk of greenwashing. Training is one of the best ways to build confidence across your team. At Hattrick, we run a Net Zero Masterclass designed to help businesses build knowledge and communicate with clarity. By staying informed, you not only avoid slip-ups but can also strengthen your sustainability appeal to potential customers and other stakeholders.
Tip 2: Define your sustainability goals
Before making any green claims, you need to have a clear understanding of your purpose and goals. It’s important to identify why sustainability matters to both the company and its customers with realistic and achievable objectives that you can report on.
Tip 3: Be clear and specific
We’ve all come across businesses that use vague terms like “eco-friendly” or “green” that don’t actually tell you what’s being claimed. To avoid greenwashing, any green claim made should be clear, specific and measurable. This clarity builds trust with customers and avoids confusion. Being specific also makes it easier to track your progress and communicate improvements over time. Think of it as giving customers the facts they need to make informed decisions.
Tip 4: Back it up with evidence
Any green claim should have proof. Whether it’s data on carbon emissions or certification from a recognised body, evidence takes something from a bold statement to a credible one. For SMEs, this doesn’t have to be complex. Keep records of the materials being used, energy saved, or waste diverted from landfill then make that information easily accessible. By underpinning every claim with evidence, you’ll avoid greenwashing and position the business as trustworthy.
Tip 5: Be transparent about progress
No SME is perfect and stakeholders don’t expect them to be. What is expected is openness. Acknowledge where you are on your sustainability journey and be upfront about areas where you’re still making improvements. For example, if you’ve switched to renewable energy but are still working on reducing supply chain emissions, say so. This shows your business is realistic and committed to progress rather than suggesting you have all the answers.
Tip 6: Use trusted resources
You don’t have to navigate this alone. There are practical resources designed to support businesses in being credible when it comes to green claims and avoiding greenwashing. Check out our Greenwashing guide for more info on what to consider when it comes to environmental claims that don’t mislead customers. There’s also the Anti-Greenwash Charter that helps businesses commit to transparent, evidence-based communication and avoid reputational pitfalls.
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