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How to Tell if a ‘Sustainable’ Business Is ‘Greenwashing’

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Making misleading claims about sustainability can backfire on companies. Investors are quick to punish companies for transgressions across the landscape of ESG issues.

Ryanair Holdings PLC launched a marketing campaign last year to brand itself as “Europe’s lowest-emissions” airline. That claim didn’t fly in Britain, where the country’s advertising watchdog banned the ads, saying they fell short of its standards and were misleading.

Critics have a word for it when a company makes deceptive claims about its environmental or social values. They call it “greenwashing.”

 

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