Increasing consumer pressure, stakeholder requirements, strategies and reporting of the ESG - all of this is forcing on entrepreneurs intensive efforts in the field of ecology and sustainable development. Some companies use unethical practices to increase their competitive advantage on the market. However, they do not engage in real environmental activities, but they launder or directly deceive. The phenomenon concerns, among others, electricity used by companies.
Greenwashing is an effort to mislead consumers and business partners by presenting false claims about the environmental benefits of their products, services or practices. It is based on creating a false or exaggerated image of sustainable development to attract environmentally conscious consumers.
Why companies use greenwashing
Companies lie because they rely on false or exaggerated information about their environmental activities to improve their image, strengthen brand reputation or simply exploit growing demand for environmentally friendly products and services. Ecology is also great in annual reports or in numerous conferences. To “green” themselves, they use generic or undocumented terms such as “green”, “green” or “sustainable” without providing concrete evidence or even - without meeting environmental standards.
Seven sins of pseudo-ecologists
Greenwashing also called “green lie” can take various forms. There are seven sins of greenwashing (a concept presented by Terry Collins, a chemistry professor at Carleton University, Canada) that will help identify this phenomenon:
- Sin of concealment (The Sin of Hidden Trade-off): The company focuses on one environmental aspect of a product or service, while ignoring other relevant environmental issues. For example, the company focuses on one positive element, such as recycling packaging, while ignoring the negative aspects of its own production or emissions.
- Sin of lack of evidence (The Sin of No Proof): claim on the environmental performance of a product or service without providing concrete evidence and independent certificates. Companies may declare that they are environmentally friendly, but do not provide any reliable data or verification sources.
- Sin of Relativity (The Sin of Vagueness): the use of generic, vague terms related to ecology, such as ‘natural’ or ‘ecological’, which do not have a specific meaning. This makes it difficult to assess the actual environmental impact of a product or service.
- Sin of Untrueness (The Sin of Irrelevance): providing information not related to real environmental problems or diverting attention from important issues. Companies can focus on small and low ecologically important aspects of their business to distract from major problems.
- Sin of lack of credibility (The Sin of Fibbing): lies or manipulations about alleged environmental activities and practices of the company. Examples include false claims about carbon neutrality or abuse of green certificates.
- Sin of insufficient quantity (The Sin of Lesser of Two Evils): comparing yourself to other companies or products that are even more harmful to the environment to create the impression that the company is more ecological. This assumes that less evil is acceptable, even though actual action is still incompatible with sustainable development.
- Sin of insufficient commitment (The Sin of Worshiping False Labels): Emphasis on having environmental labels and other “proofs” such as sustainability certificates, eco-labels, renewable signs that suggest sustainable practice or products. However, these labels may be misused, abused or not well defined. An example is the placing on their products of popular ecological symbols, such as a leaf or a logo of sustainable development, without any actual control or verification of these products for their environmental impact.
Greenwashing in Energy
In the energy industry, greenwashing is most often manifested in the lack of transparency about the origin of electricity. Many companies declare renewable power, but do not present the detailed structure of their energy mix. It should be stressed that the acquisition itself renewable energy certified confirming its origin is not the same as the real support of the RES sector.
A reliable proof of the use of clean energy is the direct purchase from the manufacturer, implemented e.g. through the PPAs. In this model renewable energy with guarantee of origin is inseparable from the physical flow of electricity from a specific source. In order to fully cover the company’s needs, a precise analysis of the consumption profile and the appropriate matching of different manufacturing sources is necessary.
RES - Promoting green action
OZEOS supports companies comprehensively - helps in direct purchase and sale Energy renewable with certificate for large consumers and energy producers. Thanks to the analysis of the recipient profile, RES source profile and advanced algorithms, we choose the best option for the company, so that the trade balancing costs are as low as possible and energy is truly green.
Working with us is not only safe access to renewable energy with guarantee of origin, but also real support for energy transition and the achievement of environmental objectives. In RESOOS we help companies build a modern and responsible energy strategy - supporting them both advisoryally and operationally.
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