5 Greener Companies and 13 Companies Failing To Keep Their Sustainability Promise

greener companies

Actions speak louder than words. Over the last two decades, companies worldwide have set goals and made pledges to reduce their environmental impact and become more sustainable. The majority of these changes were brought forth due to shifts in public policy and consumer opinion as concerns about global warming and pollution increase. Most companies set their own goals while maintaining legal requirements. Regardless, the facts remain the same — countless companies have fallen behind on their promises. While some truly greener companies do exist, many more aren’t doing all they can.

What is Greenwashing and Why is it Harmful?

Greenwashing occurs when companies deceptively present themselves as environmentally friendly to attract eco-conscious consumers. This could involve using misleading packaging or exaggerated claims about sustainability practices.

Why is it Harmful?

  1. Deceitful Marketing: It manipulates consumers who aim to make ethical purchases by creating a false perception of environmental responsibility.
  2. Erosion of Trust: When consumers uncover these falsehoods, trust in the brand and potentially the entire industry may erode.
  3. Obstructs Progress: It diverts attention from genuinely sustainable businesses, thereby slowing down overall environmental progress.
  4. Legal Repercussions: Companies found guilty of greenwashing may face legal consequences and strict regulatory scrutiny.

Ultimately, greenwashing not only misleads consumers but hampers the broader movement toward a more sustainable future.

Keep reading to discover 10 companies failing to keep their promises and five that are going green.

Those Who Miss the Mark

These 10 companies are failing to keep their promises on sustainability and ethics.

1. Amazon

This global giant says it’s committed to and invested in sustainability. It has set goals to reach net-zero carbon emissions by 2040 and power its operations with 100% renewable energy by 2025. Some initiatives support a more sustainable future for the company, but many of their fundamental values promote unsustainable practices.

At its core, the company encourages consumerism and advocates faster shipping for customers. Suggestions for greener shipping options have been passed-over for fear of alienating customers, but reports show a new plan — electric delivery trucks. If Amazon implements its new fleet of delivery vehicles, it could transform its reputation for being an unsustainable company.

2. Netflix

The Netflix business model is unsustainable. Their tendency to start big-budget projects and then end them after a single season is a waste of materials and resources. Additionally, their business model encourages people to use the internet, contributing to collective digital traffic and subsequent energy usage. Fossil fuels provide electricity globally, which means the more internet usage, the higher the daily emissions.

3. Exxon Mobil

This company consistently ranks highly for global emissions. Despite their promises to position themselves for a lower-carbon future, their business model currently relies solely on fossil fuels. Exxon believes its products are essential to modern life, and through producing those products, they are committed to protecting the environment.

4. Samsung

Receiving a “D” in Greenpeace’s 2017 Guide to Greener Electronics Report, Samsung has fallen behind competitors regarding sustainability and transparency. While the company continues to publish greenhouse gas emissions and its energy footprint, it fails to publish a list of its suppliers. Without the list of suppliers, it’s challenging to discern the company’s real level of sustainability.

5. Walmart

Walmart began its quest for sustainability in the mid-2000s, but it still has a long way to go. While it’s set lofty goals like zero emissions by 2040, average consumers see unnecessary consumption — like single-use plastic bags — used in daily operations and transactions.

6. 3M

3M has been busy, with lofty goals and products spanning 11 different industries. While they’ve reached or maintained many of their growth promises, they’ve fallen short with others. Specifically, they are behind on their goal to improve energy efficiency by 30% by 2025. Instead, they’ve only indexed a 3.2% change.

7. Darden Restaurants

Comprised of Olive Garden, Longhorn, Bahama Breeze and more, Darden restaurants include many fan-favorite chains. Their website describes a commitment to sustainability, but they haven’t updated their report since 2014. The 2015 sustainability goal update reports that they’ve reached their goals, but there is no further information supplied outside of this report.

8. Starbucks

Starbucks shocked the world by announcing they were going strawless in the name of sustainability. However, the amount of plastic waste from their straw usage is nothing compared to their disposable plastic cups. While they also offer paper cups, a thin layer of liquid-resistant material coats the cups and makes them non-recyclable. As a leader in the food and beverage industry, this company could be doing more to reduce its footprint.

9. H&M

This Swedish fast-fashion giant is known for making promises but frequently misses the targets. With efforts to be more sustainable, they began clothing recycling programs. However, many people pointed out that it would be greener if their clothes would last for years rather than quickly falling apart.

Besides this, the clothing company is known for underpaying its overseas workers. Despite promises, David Savman, H&M’s global head of production, says none of the workers are being paid living wages due to disagreements on what qualifies as a fair figure.

10. Victoria’s Secret

With a lack of transparency, this company has failed to prove it has eliminated toxic waste from the supply chain by 2020. Additionally, it sources cotton from the Better Cotton Initiative but the company does not list the exact amount or extent to which this cotton makes up their clothing.

11. BP

BP employed several misleading practices to project an image of being more eco-friendly than they actually were. They rebranded themselves as “Beyond Petroleum” and installed solar panels on their gas stations to create a greener facade. However, despite these visible changes, an overwhelming majority of their investments—over 96%—continued to be directed toward oil and gas. This discrepancy between their public messaging and actual business practices caught the attention of environmental watchdogs. For instance, in December 2019, the organization ClientEarth filed a complaint arguing that BP’s advertisements, which prominently highlighted their low-carbon energy initiatives, were misleading the public about the true extent of their environmental commitments.

12. Volkswagen

Volkswagen engaged in greenwashing by manipulating public perception about their vehicles’ environmental impact. They installed software in their cars that could detect when an emissions test was occurring. During these tests, the software adjusted the engine’s performance to meet emission standards, presenting the vehicles as environmentally friendly.

However, during regular driving conditions, the vehicles emitted pollutants at levels up to 40 times higher than the legal limit. Despite promoting their cars as low-emission and eco-friendly through extensive marketing campaigns, the reality was starkly different. This deception not only misled consumers but also compromised environmental regulations, illustrating a classic case of greenwashing.

13. Ikea

Ikea has faced significant accusations of greenwashing, particularly related to its environmental and sustainability claims. One major incident occurred in mid-2020 when the company was linked to illegal logging activities in Ukraine. Reports surfaced highlighting that the wood certification scheme used b Ikea, the Forest Stewardship Council, allegedly failed to identify and address the sourcing of conflict wood by the retailer. This raised concerns about the effectiveness and authenticity of their sustainability certifications.

Additionally, criticisms intensified when Ikea opened what it touted as its “most sustainable store” in London in 2019. The irony was palpable, as this new store replaced another “sustainable” store that had been demolished after just 17 years in operation. This act led many to question the true sustainability of such practices and whether the company was more invested in optics than genuine environmental stewardship.

Those Who Pioneer Change

These five companies are demonstrating their commitment to going green.

1. Disney

Disney seems to constantly expand their business and influence over the world, but they have sustainable practices to support that growth. For example, in 2019, the company purchased a 270-acre solar facility outside of Orlando. With this facility and other initiatives, they are able to reduce their net emissions by 47%, and it is expected that this number will grow as their initiatives increase.

2. Kemin

Kemin understands the importance of sustainability through three healthy tiers — people, planet and business. The company continues to seek ways to manage resources responsibly and minimize their environmental footprint. To date, Kemin is the only SCS-certified Sustainably Grown rosemary and spearmint supplier.

3. Burt’s Bees

Burt’s Bees has not sent waste to the landfill since 2011. It also prioritizes responsible sourcing and carbon neutrality. While the goal was to be carbon neutral by 2020, the company reached it four years sooner and has maintained that status to date.

4. Target

Target has continued to reach its goals and set new goals year after year. One especially noteworthy promise is their commitment to invest up to $5 million in green chemistry innovation by 2022. In 2017 they’d only invested $802,440 but by 2018 the number had tripled and continues to grow.

5. Ørsted

By divesting from fossil fuels and investing in wind farms instead, Ørsted was able to reduce their carbon emissions by 86%. Ultimately, their eco-friendly practices led them to rank as the most sustainable corporation in the world according to the Corporate Knights 2020 Global 100 index.

Remember to Research

In a survey conducted by Bain, of 300 respondents only 2% of companies expected to achieve or exceed their sustainability goals they’d originally set. As you can see from the list above, many companies make promises but fail to keep them. Always conduct research before investing in a company that markets itself as sustainable or eco-friendly.

What Are Some Actionable Steps Individuals Can Take to Contribute to a More Sustainable Planet?

1. Vote for Climate-Conscious Leaders

Support politicians and policies that prioritize environmental protection and climate action. Your vote can drive significant policy changes that benefit the planet.

2. Reduce Your Carbon Footprint ‍♂️

  • Energy Choices: Switch to renewable energy sources whenever possible.
  • Transportation: Use public transportation, carpool, or opt for biking and walking instead of driving.
  • Home Practices: Conserve energy by using energy-efficient appliances and practicing mindful usage, such as turning off lights when not in use.

3. Support Environmental Initiatives

  • Donate: Contribute to non-profit organizations dedicated to environmental conservation, climate education, and advocacy.
  • Volunteer: Offer your time and skills to support conservation projects and awareness campaigns.

4. Adopt Sustainable Living Habits

  • Reduce Waste: Minimize single-use plastics and choose reusable products.
  • Dietary Choices: Transition towards a plant-based diet to lower your carbon footprint.
  • Eco-Friendly Products: Opt for sustainable fashion and environmentally-friendly household items.

5. Educate and Advocate ️

  • Engage in Conversations: Talk about the climate crisis with friends, family, and coworkers to spread awareness.
  • Social Media: Use your platforms to share information and inspire others to take action.

6. Support Climate Activism ✊

  • Attend Events: Participate in peaceful protests, rallies, and marches that demand climate action.
  • Online Campaigns: Join social media campaigns that focus on raising awareness and pushing for policy changes.

7. Practice Conscious Consumption

  • Buy Local: Support local businesses to reduce transportation emissions associated with goods.
  • Mindful Shopping: Purchase items that have a lower environmental impact, such as sustainably sourced products.

Each step you take contributes to a global effort for a healthier planet. By integrating these practices into your daily life, you help build a more sustainable future for everyone.