There was a time when a green leaf on a packet, earthy colours in an advertisement, or a vague promise of being “eco-friendly” was enough to suggest that a brand cared for the planet. Sustainability lived in annual reports and glossy campaigns, but not always on the factory floor, in the supply chain, or inside the balance sheet.

That era is ending.

Greenwashing—the exaggeration, concealment or misrepresentation of environmental benefits—is no longer a harmless marketing flourish. It is now a consumer protection issue, a regulatory risk, an investor concern and a test of corporate integrity. The central question now is: can you prove what you claim? In India, too, that question has legal and commercial significance.

In 2024, the Central Consumer Protection Authority issued guidelines to prevent and regulate greenwashing and misleading claims. They require verifiable evidence. The Advertising Standards Council of India has also required green claims in advertisements to be specific, substantiated and not misleading.

This shift matters because sustainability has long suffered from a vocabulary problem. Words such as “green”, “natural”, “clean”, “carbon neutral”, “conscious” and “sustainable” are often used without explaining what improved, by how much, over what period, and against which baseline. A bottle may be called eco-friendly because the cap is recyclable. A building may be marketed as green because it has solar panels. A fashion brand may promote one sustainable line even as the larger business depends on overproduction and waste.

The problem arises when language runs ahead of reality.
 

Consumers are more aware today, but also more vulnerable to sophisticated claims. When every product claims to be green, the genuinely sustainable product gets lost in the noise. Greenwashing hurts consumers and honest businesses investing in cleaner processes, better materials and measurable impact.

It also weakens trust. If environmental claims are seen as corporate theatre, people become cynical about genuine climate action. That is dangerous when India needs private investment in clean energy, circular economy, water efficiency, sustainable packaging and climate-resilient supply chains.

The business case for moving to genuine green action is compelling. Regulation is catching up. Consumer law, advertising standards, securities regulation and global supply-chain rules are converging around disclosure and accountability. Indian listed companies are subject to Business Responsibility and Sustainability Reporting requirements, and Sebi’s BRSR Core has introduced assurance requirements and phased value-chain disclosures. Sustainability claims are entering the domain of data, audit and assurance.

Markets and capital are also becoming stricter. Exporters and companies in global value chains will face sharper questions. ESG has seen hype and backlash, but the investor question remains valid: is a company managing long-term risks, or merely its image?

So how does corporate India move from gimmick to reality?

First, be precise. Broad claims must give way to specific statements—like “made with 80% recycled aluminium”, “uses 35% less water than our 2020 baseline”, or “powered by renewable electricity for 60% of manufacturing operations.”

Second, build evidence. Every claim must have a file behind it: scientific basis, lifecycle assessment where relevant, independent certification, internal measurement, supplier documentation and audit trail.

Third, practise proportionality. A firm should not project the whole brand as sustainable because one product line or input has improved. If only the packaging is recyclable, say so. If carbon neutrality depends on offsets, disclose that clearly.

Fourth, make sustainability a board issue. Boards should ask: what are our top environmental risks, who verifies progress, and are we rewarding actual improvements?

Finally, show humility. Not every firm can become green overnight, especially in sectors like steel, cement, aviation, chemicals, textiles and logistics. But consumers and investors respect an honest transition plan.

India has a particular opportunity. As a fast-growing economy, our approach must combine ambition with pragmatism: encourage innovation, avoid excessive compliance burden for smaller firms, but act firmly against deception.

The goal is not to frighten companies. Greenhushing—where firms stop talking about sustainability for fear of scrutiny—is not desirable. Instead, the goal is truthful communication. Regulators should punish deception, not experimentation. Industry bodies should create common standards. Consumers should ask better questions. Investors should reward measurable progress.

Greenwashing will end when the market, regulator and consumer reward authenticity.

The green leaf on the package will still matter. But only when there is real green work behind it.
 

Views are personal