Greencrowding: A New Form of Greenwashing

Published in

Sustainability Directory

7 min readMay 22, 2024

Greencrowding is a sneaky way of pretending to be eco-friendly, when you’re actually not. It’s a form of greenwashing, which means deception and misrepresentation of your environmental impact.

Greencrowding is a problem, because it can fool consumers, investors, and regulators into thinking that you’re doing an outstanding job for the planet, when in fact, it’s business as usual.

As another one of the ugly siblings of greenwashing, greencrowding is the art of finding a cowardly way to hide behind a group or a label, instead of taking responsibility for your own actions. For example, you might join a green initiative or certification program, but only follow the minimum requirements, or even cheat or lie about your compliance.

Alas, its everywhere and we need to be vigilant in spotting it. Let’s take a closer look at the practice and see whether we can get better at spotting it.

A rotten apple amidst fresh green apples symbolizing the deceit of greencrowding, where companies pretend to be eco-friendly but are not. — Deception Visualized Through One Rotten Amid Fresh Apples

Greencrowding and How it Works

Greencrowding is a term coined by Planet Tracker, a non-profit financial think tank that focuses on the environmental impact of capital markets. According to Planet Tracker, greencrowding is “built on the belief that you can hide in a crowd to avoid discovery, relying on safety in numbers”.[1] A bit like people blending into an audience.

Greencrowding can take different forms, such as:

Joining an industry group or initiative that has weak or vague sustainability standards: Some companies may join an industry group or initiative that claims to promote sustainability, but in reality has low or unclear requirements for its members. The Roundtable on Sustainable Palm Oil (RSPO), which has been criticized for its lack of transparency, enforcement, and impact, is one example of an organization where businesses can use its certification to claim they’re making a difference, but in reality, aren’t.[2]
Using a sustainability label or certification that is not credible or relevant: A business can use a sustainability label or certification that isn’t verified by an independent third-party, or that doesn’t reflect the actual environmental or social performance of their products or services. It’s common to use the term “natural” or “organic” without meeting any specific standards or regulations.[3]
Participating in a voluntary reporting or disclosure scheme that is not consistent or comparable: Many businesses participate in a ‘voluntary reporting’ or disclosure scheme that allows them to choose what and how they report on their sustainability performance, without following any common framework or methodology, ie, like reporting on their carbon emissions using different scopes, baselines, or metrics.[4]

The main purpose of greencrowding is to create a false impression of sustainability, while avoiding any meaningful change or action. This allows companies to benefit from the positive reputation and market demand associated with sustainability, without having to invest in improving their environmental or social impact.

Close-up of various textured surfaces highlighting the contrast between genuine and faux eco-friendly materials. — Eco-Friendly Illusion Exposed Sustainable Materials Unveiled

Why Greencrowding is a Problem for Companies and Consumers

Greencrowding is not only unethical, but also risky and counterproductive for both companies and consumers. Greencrowding can have negative consequences such as:

Losing trust and credibility: Consumers are becoming more aware and discerning of the sustainability claims and practices of companies. They’re also more likely to access information and feedback from various sources, such as online reviews, social media, or watchdog organizations. If consumers discover that a company is greencrowding, they’ll likely lose trust in its brand.[5]
Facing legal actions or penalties: Regulators and authorities are becoming more stringent and proactive in enforcing environmental laws and standards. That means they’re increasingly monitoring and investigating the sustainability claims and practices of companies. Fortunately, many businesses are now facing legal actions or penalties for misleading or false advertising.[6]
Missing out on opportunities and innovation: Investors and stakeholders are becoming more interested and involved in the sustainability performance and impact of companies. They’re also more likely to reward companies that demonstrate genuine and effective sustainability practices. If a company is greencrowding, it may miss out on opportunities that could enhance its competitiveness.[7]

Therefore, greencrowding is not a smart or sustainable strategy for companies that want to succeed in the long term. Greencrowding can damage their reputation, expose them to legal risks, and limit their growth potential.

A single rotten apple amidst fresh green apples symbolizing the deception of greencrowding in environmental sustainability. — Greencrowding Deception Visualized Through One Rotten Amid Fresh Apples

Airbnb: A Case Study of Greencrowding

Airbnb is a popular online platform that connects hosts who offer accommodation with guests who seek travel experiences. The company has often claimed to be a sustainable and responsible business, but some of its practices suggest otherwise. Airbnb is an example of a company that engages in greencrowding, as it uses various tactics to avoid scrutiny for its environmental and social impact. Some of these tactics include:

Joining the UN Global Compact: Airbnb joined the UN Global Compact in 2016, which is a voluntary initiative that encourages businesses to align their strategies and operations with universal principles on human rights, labor, environment, and anti-corruption.[8] However, Airbnb has not submitted any progress reports since then, nor has it demonstrated how it adheres to the principles in its practices.[9]
Using the Eco-Friendly label: The platform allows hosts to label their listings as “Eco-Friendly” if they meet certain criteria, such as using renewable energy, recycling, or composting.[10] However, these criteria are not verified by any independent third-party, nor do they reflect the overall environmental impact of the listing, such as its location, size, or occupancy.[11]
Participating in the Carbon Disclosure Project (CDP): Airbnb participates in the CDP, which is a voluntary disclosure scheme that enables companies to measure and report their environmental impact.[12] Airbnb only reports on its Scope 1 and 2 emissions, which are the direct emissions from its own operations and purchased energy. It doesn’t report on its Scope 3 emissions, which are the indirect emissions from its value chain, such as the travel and accommodation of its guests.[13]

Airbnb’s greencrowding practices have been criticized by various researchers and activists, who argue that the company contributes to environmental problems such as urban sprawl, greenhouse gas emissions, and waste generation. They also argue that Airbnb has negative social impacts, such as displacing local residents, increasing housing prices, and disrupting communities.[14]

Close-up of various textured surfaces, symbolizing the deceptive layers of greencrowding in eco-friendly claims. — Eco-Friendly Illusion Exposed

The Future of Greencrowding: Trends and Challenges

Greencrowding is not a new phenomenon, but it is likely to become more prevalent and complex in the future. As sustainability becomes more mainstream, companies may be tempted to greencrowd their products or services. However, they’ll also face more risks from various factors, such as:

Increase in awareness and demand: Consumers will become more demanding of the environmental and social impacts of their consumption choices. They’ll seek more information and transparency from companies and hold them accountable for their claims. They will also prefer products or services that have credible certifications, labels, or ratings that verify their sustainability standards.[15]
Advancement in technology and innovation: Technology and innovation will enable more accurate and reliable measurement and reporting of sustainability performance and impact. This will facilitate more collaboration among stakeholders, such as regulators, investors, customers, suppliers, and communities.[16]
Evolution in regulation and competition: Regulation and competition will become more stringent and dynamic in the sustainability domain. More countries and regions will adopt or enforce environmental laws and standards that require companies to disclose their environmental footprint. Competitors will emerge in the market, as they always do, offering more sustainable products or services that challenge the existing ones.[17]

These factors will create both threats and opportunities for companies that engage in greencrowding. On one hand, they’ll increase the likelihood of being exposed for greencrowding, as well as losing their reputation to more sustainable competitors. On the other hand, they will also provide incentives for companies to improve their sustainability performance, as well as differentiate themselves from other players.

Wooden and stone textures illuminated by natural light, showcasing genuine sustainability against greencrowding. — Sustainable Elements in Natural Light

Greencrowding: Time to Go

In conclusion, greencrowding is a type of greenwashing that involves hiding behind a group or a label to avoid scrutiny or accountability. It can have negative consequences for both companies and consumers, as it undermines trust, credibility, reputation, and progress towards sustainability goals. However, as more people are keeping a vigilant eye on greencrowding, this will serve to act as a much needed motivator for both companies and consumers to be more critical of the sustainability claims and practices, and to seek more genuine and effective solutions.

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