Greenwashing refers to the act of making false or misleading claims about the environmental benefits of a product or company in order to gain a competitive advantage. It is often used by companies with poor environmental records to distract from their negative impact on the environment.
However, greenwashing can also occur when a company makes minor improvements to its environmental practices, but continues to have a major negative impact on the environment overall. This can lead to confusion and mistrust among consumers, who may be misled into believing that a company is environmentally friendly when it is not.
To combat greenwashing, some jurisdictions have implemented regulations on environmental claims in marketing. These regulations may include strict guidelines on what can be claimed and require companies to provide data to support their environmental claims. However, companies may still find ways to exploit these regulations by highlighting insignificant examples of environmentally friendly practices while ignoring their overall negative impact on the environment.