Greenwashing in Australia: When Corporate Image Trumps Real Environmental Action

In a world where climate anxiety is rising—and with good reason—consumers have become more discerning about the brands they support. A growing majority of Australians now want to spend their dollars with businesses that genuinely contribute to environmental well-being. Yet this trend has also given rise to a troubling phenomenon: greenwashing. This term describes companies that invest more effort into appearing sustainable than into making substantive changes to their environmental practices. Unfortunately, many major players in Australia’s economy have been accused of greenwashing, prioritising PR-friendly spin over real ecological progress. Below, we explore what greenwashing looks like, how to spot it, and examples from the Australian industry that show just how far we still have to go.

What is Greenwashing?

Greenwashing is the practice of misleading consumers about the environmental credentials of a product, service, or company. This can come in many forms:

• Misleading labels and certifications: Using terms like “eco-friendly,” “green,” or “natural” without any verifiable standards or certifications.
• Selective disclosure: Highlighting one small environmental improvement while neglecting to mention larger negative impacts.
• False or exaggerated claims: Overstating sustainability achievements or announcing future commitments without transparent, accountable action plans.

Greenwashing isn’t just bad for the planet; it’s also a betrayal of consumer trust. It preys on good intentions, tricking everyday Australians into supporting companies that are not actually minimising their environmental footprint.

How to Spot Greenwashing

Before we delve into Australian examples, here are a few key indicators that can help you recognise greenwashing:

1. Vague, Buzzword-Heavy Language: Phrases like “green-inspired,” “planet-friendly,” or “all-natural” without any certifications or data are red flags.
2. Lack of Transparency and Evidence: Legitimately eco-minded companies often publish sustainability reports, third-party audits, and independent certifications. If a company’s claims are not backed by measurable data, it’s wise to be sceptical.
3. Grand Promises, No Timelines: Promises like “We aim to be carbon neutral” without a clear deadline, roadmap, or quantifiable targets often indicate a hollow commitment.

Australian Examples of Greenwashing

1. Fossil Fuel Giants and the Illusion of ‘Clean Energy’
In 2020, the Australian Competition and Consumer Commission (ACCC) called out several businesses for making misleading environmental claims. While these interventions often happen behind closed doors, some high-profile cases have made the news. For instance, major fossil fuel companies operating in Australia often invest heavily in advertising that emphasises their commitment to “energy transition” and “lower-carbon solutions.” Yet, as the Australia Institute and numerous environmental groups have noted, much of this expenditure is overshadowed by ongoing, large-scale investments in new oil and gas projects. For example, Chevron’s Gorgon LNG project in Western Australia pledged one of the world’s largest carbon capture and storage programs—but early reports [1] from 2021 revealed it fell short of its carbon capture targets, indicating a gap between public commitments and actual achievements.

2. Fast Fashion and Synthetic ‘Sustainable’ Fabrics
Fast fashion retailers in Australia have also been accused of greenwashing. Some brands announce “Conscious” or “Sustainable” collections without disclosing the full life-cycle impact of their products. While a T-shirt might be marketed as partially made from recycled polyester, the brand may fail to reveal that a significant portion of their overall business model relies on cheap, petrochemical-derived fabrics. Greenpeace Australia Pacific [2] has emphasised that without strong third-party certifications like Global Organic Textile Standard (GOTS) or Fair Trade Textile Standard, such claims often serve to distract from rampant overproduction and reliance on fossil fuel-based materials.

3. Supermarkets’ ‘Green’ Initiatives
Australia’s leading supermarket chains have rolled out various “green” strategies, from promoting reusable bags to sourcing “sustainable” produce. While these steps aren’t meaningless, critics argue that much of the messaging oversimplifies complex supply-chain issues. Woolworths and Coles, for example, have publicised their moves toward renewable energy contracts and plastic reductions. However, campaigns like “Responsibly Sourced” seafood have been challenged by consumer advocacy groups, who argue that the criteria used to define “responsibility” are unclear. In 2019, consumer group CHOICE [3] pressed companies to detail their standards, noting that vague environmental commitments can mislead well-intentioned shoppers.

4. The Beauty and Body Care Sectors
The cosmetic and body care industries often rely heavily on nature-inspired marketing—think green leaves, earthy tones, and “botanical” ingredients. Some Australian beauty brands tout native botanicals to evoke environmental harmony, yet they may use ingredients sourced unsustainably or rely on manufacturing processes that aren’t carbon-neutral. Without certifications like COSMOS or a B Corp endorsement, “natural” is often just marketing fluff. This lack of transparency misleads consumers who want to support truly eco-friendly products.

The Cost of Greenwashing

Greenwashing does real damage. It lets companies profit from appearing eco-conscious without making the tough changes necessary to reduce carbon emissions, protect biodiversity, and cut down on waste. This behaviour stifles genuine efforts—both from smaller, truly eco-focused companies and from grassroots movements pushing for sustainable practices. For consumers, it erodes trust. If shoppers can’t rely on environmental messaging, they become cynical, potentially giving up on the idea that their individual choices matter.

How Responsible Businesses Stand Apart

1. Third-Party Certifications: Look for certifications from reputable organisations. Australian Certified Organic, The Global Organic Textile Standard (GOTS), Ethical Clothing Australia, and B Corp status are all strong indicators of genuine sustainability efforts.
   
2. Transparent Reporting: Legitimate environmentally-conscious companies publish annual impact reports detailing carbon emissions, water usage, and supply chain audits. Transparency, even when the news isn’t all good, shows integrity and a commitment to improvement.
   
3. Holistic Change, Not Token Gestures: Instead of introducing one “green” product line, ethical companies integrate sustainability into all aspects of their business—from product materials to packaging, shipping, and energy sourcing.
   

As a hemp-based company, we at Margaret River Hemp Co understand that sustainability isn’t a marketing ploy—it’s a responsibility. Hemp’s naturally beneficial qualities, such as its relatively low water usage, soil-replenishing capabilities, and durability, already offer a more eco-conscious path. We back our claims with transparent material sourcing, careful supply-chain management, and continual effort to improve. We believe customers deserve more than eco-friendly sounding slogans; they deserve honesty, accountability, and verifiable progress.

Moving Forward: Let’s Demand Better

Australia is seeing a groundswell of environmental awareness. Consumers can use this momentum to demand more from the brands they buy. When greenwashing erodes trust, it’s up to both regulators and individuals to call it out. Groups like the ACCC and consumer watchdogs are beginning to take greenwashing seriously—recently, the ACCC launched a crackdown on misleading environmental claims, warning businesses they would face consequences [4]. More robust action is needed, including clearer industry-wide standards, better enforcement of misleading claims, and more education for consumers.

What can you do? Scrutinise every “green” claim. Ask questions. Demand proof. Support companies that provide third-party certifications and detailed environmental reports. If a brand can’t back up its claims, consider spending your money elsewhere. As consumers grow more vigilant, corporations will have no choice but to align their actions with their rhetoric—or risk losing credibility and market share.

Greenwashing is a symptom of a transitional era—an era in which the public demands change, but corporations aren’t always ready to deliver. By staying informed and holding companies accountable, Australians can help shift the market toward truly sustainable practices. Real change happens when ethical standards, honest communication, and verifiable action take precedence over empty slogans.

References:

[1] Milne, P., “Gorgon carbon capture and storage project fails to meet five-year target,” The West Australian, July 2021.
[2] Greenpeace Australia Pacific, Fast Fashion Fact Sheet, accessed online.
[3] CHOICE, “Green claims and your rights,” Choice.com.au, accessed online.
[4] ACCC, “ACCC warns businesses about misleading environmental claims,” ACCC.gov.au, 2023.