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How To Avoid Greenwashing and Invest in Ethical Companies

Ester Adams by Ester Adams
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The word “greenwashing” has been used for quite some time, yet it appears to be more prevalent than ever before. You’ve undoubtedly seen those commercials for laundry detergent or dish soap where they try to persuade you that their product is better for the environment because it’s “eco-friendly.”

The fact is that many of these goods are no better for the environment than their conventional counterparts. This article will discuss how to avoid greenwashing and invest in ethical companies.

How To Know If Greenwashing Is Happening

Since the term “greenwashing” was coined in the 1980s, companies have been getting better and better at disguising their environmentally-destructive practices with a veneer of sustainability. As consumers become more conscientious about the environment, it is more important than ever to know how to avoid greenwashing. Here are a few things to look out for:

  1. Exaggerated claims: Be wary of companies that boldly claim how “green” their products are. If it sounds too good to be true, it probably is.
  2. Lack of transparency: A company truly concerned about sustainability will be transparent about its manufacturing process and supply chain. If a company is being evasive about where its products come from, it might be trying to hide something.
  3. Vague language: Another common tactic of greenwashers is to use vague or confusing language to make their sustainability claims more difficult to fact-check.
  4. Greenwashing only part of the product: Sometimes, a company will advertise only one sustainable aspect of their product while neglecting to mention the other, less eco-friendly aspects.

By being aware of these standard greenwashing techniques, you can help ensure that unethical companies are not deceiving you.

How To Invest In Ethical Companies

One way to avoid greenwashing is to invest in companies that have a demonstrated commitment to sustainability. Here are a few things to look for when considering an investment:

  1. Environmental, social, and governance (ESG) criteria: ESG criteria are standards used to evaluate a company’s sustainability. Many investment firms use ESG criteria when making decisions about where to invest.
  2. Green certifications: Companies can earn many different green certifications, such as LEED certification for energy-efficient buildings. Investing in companies with these certifications is an excellent way to ensure that your money is going towards sustainability.
  3. Sustainable products and services: Another good indicator of a company’s commitment to sustainability is whether its products and services are themselves sustainable. For example, a company that manufactures solar panels is likely more environmentally friendly than one that manufactures coal-fired power plants.

By investing in companies that are committed to sustainability, you can help support the transition to a more sustainable economy.

How To Avoid Greenwashing In Summary

Although it can be difficult to determine whether a company is truly environmentally friendly, there are ways to invest in ethical companies that support sustainability. By doing your research and being mindful of the signs of greenwashing, you can make informed decisions about where to put your money and help promote sustainable practices.

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