Sustainability Knowledge

Corporate Greenwashing Series

The Impact of Greenwashing on Customer Satisfaction and Business Performance

A research paper by Ioannis Ioannou (London Business School), George Kassinis (University of Cyprus), and Giorgos Papagiannakis (University of Peloponnese) examined how perceived greenwashing affects customer satisfaction and ultimately, business performance. The study provided empirical evidence that when companies fail to deliver on their environmental promises, customers perceive this as corporate hypocrisy, which negatively impacts their satisfaction with the company's products and services.

Climate Litigation Risks and International Framework Considerations

Climate litigation presents escalating risks to corporations across jurisdictions. This document analyses key recent cases, identifies primary risk factors, and provides actionable guidance for boards and executives. Primary risks include greenwashing allegations, environmental damages liability, and failures to meet disclosure requirements.

Challenges to Corporate Environmental Claims: Consumer Deception in the California Climate Lawsuit and Apple Watch Class Action

The analysis examines two landmark consumer deception cases with significant implications for environmental marketing. The California oil majors case establishes potential liability for long-term climate misinformation, while the Apple Watch case challenges carbon neutrality claims based on questionable offsets. Both cases highlight deceptive business practices that misled consumers about environmental and sustainability claims, causing financial and societal harm. Both cases also demonstrate heightened scrutiny of environmental claims and the growing legal risks of greenwashing. Organisations should review their environmental marketing, carbon offset verification processes, and disclosure practices to mitigate potential similar liability risks.

Companies Achieving Authentic Sustainability Success: Beyond Greenwashing

While previous analyses in this series have examined the risks of greenwashing and climate litigation, this document highlights organisations that have successfully implemented authentic sustainability practices, creating business value while avoiding the pitfalls of exaggerated environmental claims. Through case studies of industry leaders including Patagonia, Ørsted, Interface, and Natura &Co, we identify common success factors that distinguish genuinely sustainable businesses from those engaged in greenwashing.