Many organizations claim to be eco-friendly. It’s a laudable goal. But often the behavior doesn’t match the aspirational claims. Greenwashing is the common term for misleading claims about a product or company’s environmental benefits to appear eco-friendly.

Recently, such claims have faced increased scrutiny from regulators and the public. An October 2023 analysis (International Paper, June 16, 2025) linked 1,850 companies to misleading communications, prompting tougher oversight and new laws targeting deceptive environmental marketing. Beyond legal risks, greenwashing damages customer trust and reputation. In our opinion, sustainability claims must be honest and evidence-backed to avoid severe consequences.

Consumers and investors demand more than promises—they want verifiable action.. Products marketed as sustainable often see higher sales growth, creating incentives for brands to exaggerate. However, regulators now challenge even aspirational statements.

Recycling claims, a frequent target of greenwashing, often lack substance. Many products labeled “recyclable” end up in landfills due to processing limitations or consumer misinformation. For instance, California now prohibits misleading recycling symbols, requiring claims to align with actual recycling capabilities. Similar global rules ensure products marketed as recyclable can actually be recycled.

To ensure recycling claims hold up, companies must shift from promises to proof. The best way to do this is by establishing a chain of custody that tracks waste from disposal to its final destination and is backed by legal documentation. This includes collection records, facility processing receipts, and end-market confirmations. Robust record-keeping turns sustainability claims into auditable data, proving outcomes instead of assumptions.

This is where Circular Solutions comes into play, by offering groundbreaking tools that provide full transparency and traceability across the recycling process. We help organizations track materials from start to finish, ensuring they meet recycling standards, and we use third-party verification blockchain technology to confirm the legitimacy of recycling claims. These services allow companies to provide data-backed evidence that supports their sustainability efforts.

Moving from messaging to measurement is crucial for sustainability credibility. Verifiable performance, supported by third-party audits and digital platforms, is replacing vague slogans with trustworthy data. This approach not only mitigates legal risks but also improves operational efficiency and builds brand trust through transparency and accountability.