Whiplash Team, 12 September 2025

Greenwashing vs greenbranding: building a truly sustainable brand

More and more companies are declaring their commitment to sustainability, but not all do so with the same honesty. While some make sustainability an integral part of their strategy, others limit themselves to cosmetic practices known as greenwashing. The difference between the two affects not only brand reputation but also long-term viability.

The term greenwashing refers to the misleading use of messages or actions designed to project an environmentally friendly image without genuine commitment behind it. It describes campaigns that talk about sustainability without verifiable data, that exaggerate minor gestures or conceal harmful practices.

In 2021, the European Commission published a study revealing that more than half of environmental claims made by brands in the EU were vague, misleading or unfounded—and 40% lacked any supporting evidence. These figures show that greenwashing is not an exception but a widespread practice that erodes consumer trust.

Greenbranding: sustainability as strategy

In contrast, greenbranding offers an honest and structural approach: integrating sustainability into both brand identity and business model. It is not about adding a green label to packaging, but about rethinking the value chain, production processes, partnerships and communications coherently.

A clear example is fashion brand Stella McCartney, a pioneer in eliminating the use of animal leather and fur in its collections. Its positioning as a sustainable luxury label is not a one-off campaign but a cross-cutting philosophy guiding every design and production decision.

Transparency as the foundation of credibility

The essential difference between greenwashing and greenbranding lies in transparency. Truly sustainable brands do not shy away from showing their progress—but neither do they conceal their limitations. Honest communication means acknowledging that the transition to regenerative models is an ongoing process, not an instant achievement.

The Fashion Transparency Index, published annually by Fashion Revolution, analyses how much fashion brands disclose about their supply chains, labour policies and environmental impacts. The findings consistently show that greater transparency correlates with higher trust and stronger long-term reputation.

Critical consumers and stricter regulations

Pressure to abandon greenwashing comes not only from increasingly critical and better-informed consumers but also from institutions. In March 2023, the European Commission proposed the Green Claims Directive, a regulation requiring companies to substantiate environmental claims with verifiable evidence and recognised methodologies.

In this scenario, brands persisting with superficial practices will face not only financial penalties but also reputational damage that is difficult to repair.

Sustainability as a competitive opportunity

Adopting a greenbranding approach is not merely an ethical or legal obligation: it is also a source of competitive differentiation. Brands that embed sustainability structurally manage to attract talent, retain customers and open new markets.

As Paul Polman, former CEO of Unilever, has put it: “Business must be there to solve the world’s problems, not to create them.” Greenbranding, in this sense, is not just communication: it is business survival in a context where consumers and regulators no longer accept empty words. comunicación: es supervivencia empresarial en un contexto donde los consumidores y los reguladores ya no aceptan discursos vacíos.