The Business of Greenwashing: When Sustainability Turns into a Sales Strategy

Written by Jessica Hua (W’26, Edited by Nina Rawal (W’27)

Sustainability is the new brand currency. Once a niche value proposition, it’s now a marketing necessity and something every brand wants to claim, whether or not their operations reflect it. The green movement has gone mainstream, and so has its misuse. What began as a call for corporate accountability has now, in many cases, turned into a sales strategy.

For years, sustainability was about reform: rethinking supply chains, investing in renewable energy, and redesigning products for circularity. However, as consumer awareness grew, so did the pressure to appear eco-friendly. Companies learned that they didn’t need to overhaul their business models; they just needed to appear as though they had, and thus greenwashing was born. 

The result is a widening gap between marketing and reality. Consumers increasingly reward brands that project responsibility, yet many of those claims crumble under scrutiny. Fast-fashion giants release “conscious” collections, with recycled fabrics comprising less than 5% of their output. Airlines promise “carbon-neutral” flights through questionable offset programs. Food and beverage companies tout “eco packaging” that isn’t recyclable in most facilities. The appearance of change has become more valuable than change itself.

This illusion of progress creates a paradox: sustainability sells, but genuine reform remains rare. The issue isn’t that companies are talking about sustainability, but rather that many treat it as a branding exercise rather than a structural commitment. The marketing departments move faster than the manufacturing lines. As long as glossy campaigns and “eco” packaging generate consumer trust, there’s little incentive to make costly operational shifts that might actually reduce emissions or waste.

However, there has been an increase in regulators who are beginning to call out misleading claims, forcing brands to confront the consequences of their narratives. The European Union’s Green Claims Directive, for instance, will soon require companies to substantiate environmental claims with evidence, a move that could reshape how global corporations communicate their sustainability efforts. Similarly, lawsuits against major fashion and food conglomerates have made “greenwashing” not just a reputational risk, but a legal one as well.

The brands that will endure this shift are those that integrate sustainability into their business DNA, not their ad copy. Patagonia, for example, built its identity around restraint rather than expansion, urging customers to “buy less” long before it became a fashionable trend. Smaller direct-to-consumer brands are also proving that transparency can be a differentiator through publishing supplier lists, disclosing material sourcing, and accepting slower growth in exchange for credibility.

Ultimately, sustainability’s next chapter depends on whether consumers reward authenticity over aesthetics. As the market matures, empty virtue signaling will lose its appeal. Real progress won’t come from another “green” logo or capsule collection, but from companies willing to question the very logic of endless growth. Until then, the color of sustainability will remain less about green and more about optics.