Over half of UK consumers would boycott greenwashing companies

More than half of UK consumers would stop buying products and services from companies found to have greenwashed, according to a survey by KPMG UK. It also found that almost a fifth (18%) have changed their mind about a company due to misleading green claims. KPMG UK surveyed more than 2,000 UK adults on their thoughts around green and sustainable products and technologies to understand how they influence decisions, and whether misleading practices such as ‘greenwashing’ were having an impact. It found that greenwashing is widely recognised by consumers, with almost half (45%) stating they had heard of the term, with words such as fake, lying, exaggerating, dubious, and misleading all commonly being used unprompted to explain what the term is. Over three-quarters (76%) of respondents agreed that false or misleading claims about the sustainability of specific products was the clearest example of greenwashing. Other popular examples of what consumers believed constituted greenwashing were exaggerated or unsubstantiated sustainability credentials (73%), misleading commitments on net zero (66%), inconsistent ethical polices (60%), and missing sustainability targets (39%). The survey revealed that 54% of consumers would stop buying from a company if it was found to have been misleading in its sustainability claims, while 38% would stop investing in it. Richard Andrews, head of ESG at KPMG in the UK, said: “Companies keen to capitalise on the growing interest in sustainable products should be taking a measured approach; overselling sustainability credentials risks losing customers as well as the reputational damage that will follow. While this might often be unintentional, understanding the data behind any sustainability claims is key, as well as ensuring that data has also been verified, if brands are serious about avoiding any greenwashing risks.” Sustainability of goods and services is important to consumers, with two-thirds of consumers (67%) trying to seek out green or sustainable options for some of the products and services they buy, the survey found. However, a third (33%) of respondents said they were sceptical of green labels and sustainability claims, while a similar amount (28%) admitted to struggling to know what products were green or sustainable due to inconsistent labelling, according to KPMG. Awareness of sustainability labels remains very low, the survey found. Established marks like fairtrade (73%) and Rainforest Alliance Certified (44%) had the greatest awareness among respondents, while initiatives like the carbon reduction label (9%), B Corp (10%) and better cotton initiative (9%) all scored low on consumer awareness. The energy sector (58%) was seen as the most likely to engage in greenwashing, with the fashion industry closely following (57%), although for 18- to 24-year-olds, the fashion industry was seen as the most likely to greenwash (66%), ahead of the energy sector (50%). Transport and automotive (51%) and grocery, food and agriculture (47%) were also seen as at risk of greenwashing by a large number of consumers, said KPMG. “The results present a catch-22 situation for both companies and their customers. On the one hand, customers are prepared to stop buying something if it has been linked to greenwashing, but they also admit that they struggle to navigate the labels currently out in the market. Meanwhile, companies are investing time and money verifying their efforts, but awareness of some of the environmental accreditation schemes remains very low,” said Andrews. He added: “What is clear is that any signs of greenwashing will diminish trust further, so it is imperative that companies continue to ensure all claims can be evidenced and that as new regulations are introduced, they are understood and adhered to. The risks of overselling being ‘greener than green’ are too high.”

Over half of UK consumers would boycott greenwashing companies

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