Capgemini Report Highlights Rising Greenwashing Concerns Among Consumers

What's Happening?

A recent report by the Capgemini Research Institute has revealed a significant increase in consumer skepticism regarding greenwashing practices by companies. The report, titled 'A world in balance 2025: Unlocking resilience and long-term value through environmental action,' indicates that 62% of consumers now believe companies are engaging in greenwashing, up from a third in 2023. Greenwashing refers to misleading the public into thinking an organization is doing more for the environment than it actually is. The report also highlights a gap between organizations' plans to invest in environmental sustainability and those with detailed climate transition plans. Only 21% of businesses have developed such plans, despite 82% claiming sustainability as a core strategy for future competitiveness.

Why It's Important?

The rising concerns about greenwashing have significant implications for businesses and their relationship with consumers. As skepticism grows, companies face increased pressure to demonstrate genuine environmental efforts. This credibility gap can affect brand reputation and stakeholder trust, which are crucial for long-term success. The report suggests that organizations need to strengthen the credibility of their climate actions through evidence-backed sustainability communication. Failure to address these concerns could lead to consumer backlash and loss of market share, as consumers increasingly demand transparency and accountability in corporate environmental practices.

What's Next?

Organizations are encouraged to move from strategy to execution in climate adaptation and mitigation. The report outlines recommendations for advancing sustainability efforts, including adopting pragmatic, operational approaches and implementing financed transition measures. As global environmental pressures mount, companies must prioritize tangible actions to build resilience and maintain competitiveness. The role of AI in sustainability is also highlighted, with its potential to drive efficiencies, though its environmental impact must be managed. Companies are urged to address these challenges to avoid further scrutiny and accusations of greenwashing.

Beyond the Headlines

The report underscores the ethical and operational challenges companies face in balancing sustainability goals with business realities. As geopolitical factors and budget constraints hinder progress, organizations must navigate complex dynamics to achieve genuine environmental impact. The discussion around AI's environmental footprint adds another layer to the sustainability debate, emphasizing the need for comprehensive strategies that consider both technological advancements and their ecological consequences.