Business development

How to avoid greenwashing in your communication

Greenwashing occurs when a product, service, project, or organisation appears more sustainable than it actually is. This guide suggests how to avoid making this mistake.

The European Parliament defines greenwashing as giving a false impression about a product's environmental impact or benefits, which misleads consumers. Textile and clothing SMEs often work to reduce their environmental and social footprint by using lower-impact materials, reducing waste, repairing or upcycling garments, producing locally, extending product life, or testing circular business models. Companies should communicate these efforts, provided the claims are specific, honest, and supported by evidence.

Greenwashing occurs when a product, service, project, or organisation appears more sustainable than it actually is. This stems from vague terms like “green,” “eco-friendly,” or “sustainable,” or from selective communication that hides negative impacts while highlighting a single positive feature. Unverified labels, symbols, and statements create risk for SMEs.

This topic applies directly to FABRIX, as the project supports SMEs in developing sustainable, circular, and local textile practices. Clear communication builds trust with customers, partners, funders, and local communities, while exaggerated claims carry reputational and legal risks. The following legislation applies to textile and clothing SMEs communicating about product durability, repairability, reuse, local production, or circular models.

Legislation and guidelines at EU level

The EU legal framework restricts generic, unproven environmental claims. It targets labels lacking approved certification and claims relying solely on emissions offsetting to present a neutral or positive environmental impact. EU rules on environmental communication are tightening. A valid sustainability claim specifies the action taken, the supporting evidence, the scope of the claim, and any existing limitations. SME claims regarding sustainability, circularity, repairability, materials, or local production must be accurate, transparent, and proportionate.

Empowering Consumers Directive (Directive (EU) 2024/825): This directive strengthens consumer protection against misleading environmental claims, unreliable labels, and vague marketing. It requires environmental and social claims to be clear and reliable. It restricts generic terms like “green” or “eco-friendly” if they lack recognised excellent environmental performance. The directive prohibits applying a claim about a single aspect to an entire business or product, and restricts offsetting-based claims like “climate neutral” or “carbon neutral”. Member States had to transpose this Directive by 27 March 2026, and the rules apply from 27 September 2026. SMEs must ensure claims are specific, evidence-based, transparent regarding scope, and do not overstate impact.

The Green Claims Proposal: This European Commission proposal requires companies to substantiate voluntary environmental claims using robust, science-based methods, and mandates checks by independent, accredited verifiers. Its goal is to make environmental claims reliable, comparable, and verifiable. While not yet final EU law, it indicates the policy direction requiring specific, evidence-based, and transparent communication.

The Ecodesign for Sustainable Products Regulation (Regulation (EU) 2024/1781): This regulation moves the EU toward circular, durable, and traceable products, prioritising textiles, garments, and footwear. It introduces the Digital Product Passport to improve access to accurate product information across the value chain. SMEs must base communication on real product data, traceability, and evidence.

Practical tool: the Green Claims Check

• SMEs should ask these five questions before communicating sustainability claims:
  What exactly are we claiming? Avoid broad statements like “we are sustainable”. Specify the product, process, material, service, or action.
• What evidence do we have? Support claims with documentation, supplier information, data, certifications, traceability records, lifecycle thinking, or internal records.
• What is the scope of the claim? Clarify whether the claim applies to one product, one collection, a single material, a production stage, or the entire business.
• What are the limits or trade-offs? Explain what has improved alongside what remains challenging or unresolved.
• What are the next steps? Communicate current progress while defining realistic, measurable future goals.

Communication strategy: evidence first, message second

SMEs should build their message around existing evidence rather than starting with a marketing slogan. Identify proven actions first. A valid message details the action, the supporting evidence, the scope, the resulting impact, and the next steps. This shifts communication from vague statements to specific, verifiable facts.

Instead of claiming "our brand is eco-friendly," an SME should state: "This collection uses deadstock fabrics sourced from local suppliers. By working with existing materials, we reduce the need for virgin textile production for this specific collection. We are currently working on improving traceability across our full supply chain". This specific approach explains the action, scope, and future improvements without overstating the impact.

Facilitators can apply this strategy when assisting SMEs with mentoring, communication planning, platform profiles, matchmaking events, showcasing, and stakeholder engagement. The objective is to help SMEs communicate their sustainability efforts accurately and with integrity. Honest impact communication serves as a fundamental component of good governance, reflecting transparency and accountability to customers, communities, collaborators, and the wider Fabrix ecosystem.

Contributed by Athens University of Economics and Business.