GLOSSARY
Greenwashing
Greenwashing is when a company exaggerates or distorts its actual environmental performance, or uses unsubstantiated terms like 'eco-friendly' or 'carbon neutral' without evidence, misleading consumers and other stakeholders. A growing number of jurisdictions are tightening greenwashing regulation and advertising review as a result.
Why it matters for Tier-2/3
When suppliers draft a sustainability report or marketing material in response to a customer request, using unverified targets or unsubstantiated 'eco-friendly' language creates real greenwashing exposure. A Tier-2/3 supplier is better protected by a simple rule: only make claims that actual data and evidence can back up.
Related
Informational only — this does not replace an official ESG evaluation. Independent content; not affiliated with or endorsed by any framework organization.