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Tackling Greenwashing

"Greenwashing" refers to a trivial act of climate or environmental actions without the goal of creating concrete, holistic impacts and mainly with the intention of virtue signaling. Creating sustainable impacts, therefore, has been advised by various experts, so that changes can last and greenwashing is avoided.


Greenwashing has become a significant concern in recent years, as many companies claim to be environmentally friendly but fail to deliver concrete actions. A study by World Benchmarking Alliance revealed that only 1% of companies demonstrate the fundamentals of social responsibility, while more than 85% of firms worldwide claim to be "environmentally friendly." This highlights the need for a solution to prevent organizations from making false environmental claims.


Standards can help organizations avoid greenwashing by providing a clear framework for evaluating sustainability practices. For example, the Global Reporting Initiative (GRI) provides sustainability reporting and disclosure guidelines, allowing organizations to communicate their environmental performance to stakeholders accurately. On top of that, blockchain technologies can provide transparency and traceability in the supply chain. As blockchain algorithms allow unaltered audit trails, it ensures that companies are genuinely committed to sustainability.


One company that has embraced this recommendation is The Alpine Group, an international fashion manufacturer. The company became the first in the world to undertake the Future Fit Business Benchmark for Sustainability, a standard developed by the UN to evaluate a company's sustainability practices, including its use of resources, waste management, and social impact. Using these standards, The Alpine Group has demonstrated its commitment to concrete actions and set an example for other businesses.


By incorporating technologies and standards into their sustainability practices, businesses benefit. They can ensure that they are not making false environmental claims and are committed to sustainability. This is important as they will contribute to improving the world and gain wider acceptance among their consumers; a survey from PDI, a global research firm, shows that 60% of people are more likely to buy from sustainable companies.

Organizations can avoid false claims and deliver concrete actions by sticking to a clear framework for evaluating environmental performance. Businesses can use these technologies and standards to ensure that they are positively impacting the environment and to set a positive example for others to follow.


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