Greenwashing is the process of conveying a false impression or providing misleading information about how a company's products are more environmentally sound. Greenwashing is considered an unsubstantiated claim to deceive consumers into believing that a company's products are environmentally friendly.
For example, companies involved in greenwashing behaviour might make claims that their products are from recycled materials or have energy-saving benefits. Although some of the environmental claims might be partly true, companies engaged in greenwashing typically exaggerate their claims or the benefits in an attempt to mislead consumers.
Greenwashing is a play on the term "whitewashing," which means using misleading information to gloss over bad behaviour.
Also known as "green sheen," greenwashing is an attempt to capitalize on the growing demand for environmentally sound products, whether that means they are more natural, healthier, free of chemicals, recyclable, or less wasteful of natural resources.
The term was coined by Jay Westerveld, a New York environmentalist in his essay written in 1986 about the hotel industry, particularly the practice of placing a notice in the rooms promoting reuse of towels to save the environment. He noted that while the notice promoted such reuse of towels, there was little or no effort towards reducing energy waste in the industry.
One of the best ways to identify greenwashing is to read the label of products thoroughly before purchasing and doing one’s own research to understand what contributes to a green economy and what does not.