More than Just a Business Ploy? Greenwashing as a Barrier to Circular Economy and Sustainable Development: a Case Study-Based Critical Review

Is greenwashing more than just an irksome firm behavior? Might greenwashing have the potential to place an invisible shackle on circular economy and sustainable development? Exploring this rather unconventional premise, the study investigates how greenwashing relates to circularity and sustainability, seeking to unravel the intertwined connection between them. In a novel proposition, this study suggests that greenwashing is closely related with SDG12, and consequently acts as a barrier to circular economy and sustainable development. The specific aim of the study is to determine how consumer-sector greenwashing affects sustainable consumption and production and how it impacts SDG12. This study critically reviews multiple greenwashing cases across four prominent consumer goods sectors: automotive, bottled water, garments, and processed food. The review characterizes the impact of greenwashing on sustainability. Three specific impact avenues by which greenwashing affects SDG12 are identified, each corresponding to a major facet of the goal. Through a critical analysis of the 11 targets of SDG12, this study finds six to be directly hampered by greenwashing. Moreover, limitations of SDG12 are observed, most notably in that SDG12 undervalues the role of businesses and customers, has targets and indicators that do not properly encompass its essence, prioritizes outcomes without building pathways, and lacks specific directives against greenwashing at the global institutional level. Recommendations across institutional, managerial, and societal spheres are discussed. The study highlights the role of businesses in achieving sustainability and emphasizes the need for policy to deter greenwashing. The study aspires to progress discourse on the complex issue of greenwashing.