Reflections on a Guest Lecture: Tackling Greenwashing with Future Leaders

This summer, I had the privilege of guest lecturing at the University of Ljubljana, School of Economics and Business, as part of their International Sustainability Strategy course at the Ljubljana Summer School. It was a fantastic experience to engage with the students, hear their perspectives, and explore the pressing issues that matter to them in the realm of sustainability. Their enthusiasm and curiosity were truly inspiring.

One of the key topics that emerged during our discussion was greenwashing—a term that refers to the deceptive practice where companies present a misleadingly positive image of their environmental efforts. As I interacted with the students, it became clear how critical it is to address and avoid greenwashing in today's complex business landscape.

Understanding Greenwashing

Greenwashing occurs when companies attempt to appear more environmentally friendly than they are. This can involve a range of tactics, from using vague or misleading language to overstating the benefits of a product or service. Greenwashing can be particularly challenging because it often exploits consumers' genuine desire to support sustainable practices, making it harder for them to distinguish between companies that are committed to sustainability and those that are merely capitalizing on the trend.

Greenwashing in Energy

Although we discussed how greenwashing manifests differently across various industries, the focus was on the energy segment as we reflected on RESMAN’s latest sustainability report. 

In the energy sector, greenwashing can be particularly nuanced and hard to spot. In our segment – tracer technology for wireless flow monitoring, technologies are often marketed as green solutions that enhance efficiency and help to reduce emissions. While wireless monitoring indeed offers significant benefits compared to traditional methods such as wireline, there are potential pitfalls that can lead to greenwashing.

Overstating benefits: claiming that their wireless monitoring systems are entirely sustainable without acknowledging the environmental footprint of the production, composition and disposal of the tracers. It’s important to assess the full lifecycle impact of these systems to get a clear picture of their environmental benefits. The environmental benefits of wireless monitoring systems might be exaggerated if companies fail to consider the lifecycle impact of their products, including the resources used in manufacturing and the energy required for operation.

Misleading metrics: using selective data to showcase the environmental benefits of tracer monitoring systems while ignoring other relevant metrics. For instance, greenwashing could be expressed as highlighting benefits of tracer technology without addressing the energy and resources required for the company's operations, resource use and power supply

Surface-level solutions: promoting wireless monitoring as a “quick fix” for energy inefficiencies without addressing underlying systemic issues, and present tracer technology as a standalone solution for complex energy management problems, rather than as part of a broader, integrated strategy.  Effective energy management often requires a comprehensive approach that includes process optimization, other technology tools, and robust policy frameworks.

Best Practices for Avoiding Greenwashing

For RESMAN it is crucial to avoid falling into the trap of greenwashing. Here are some best practices in energy technology segment to help avoid greenwashing I shared with the students:

Transparency and authenticity: provide clear, genuine and comprehensive information about your environmental practices and the impact of your products or services. Avoid vague claims and be specific about the benefits and limitations of your sustainability efforts.

Third-Party verification: Seek certification from reputable third-party organizations to validate your environmental claims. Independent assessments can provide credibility and help build trust with your stakeholders.

Lifecycle assessment: conduct a thorough lifecycle assessment of your products or services to understand their full environmental impact. This includes evaluating the sustainability of raw materials, production processes, usage, and end-of-life disposal.

Continuous improvement: commit to ongoing improvement in your sustainability practices. Greenwashing often stems from a lack of genuine effort, so it’s important to continuously strive for better environmental performance and to be open about your progress and challenges. Setting realistic immediate and long-term KPIs is critical for these efforts and balancing them with common goals such as the United Nations Sustainable Development Goals.

Balancing internal and external focus: While establishing best practices starts with robust internal organizational practices, it’s equally critical to acknowledge the growing importance of external factors. This includes managing supply chains and engaging with stakeholders such as suppliers, subcontractors, and agents. By integrating these external elements into our sustainability strategy, we can enhance the authenticity and effectiveness of our sustainability efforts.

Engaging stakeholders: actively involve employees, customers, and other stakeholders in your sustainability efforts, through market education, thought leadership and collaborative practices. Their feedback and perspectives can help you stay grounded and ensure that your initiatives are genuinely addressing real environmental issues. In addition to potentially getting new perspectives on how we can improve going forward.

My interaction with the students reinforced the importance of tackling greenwashing head-on. As future leaders and consumers, they will play a crucial role in shaping the sustainability landscape and holding companies accountable. By understanding and addressing greenwashing, we can all contribute to a more transparent and effective approach to environmental responsibility.