Every brand wants to look like the planet. Here is how to tell which ones are.
You are in a supermarket in Ikeja, holding two packs of washing powder. One costs more and carries a green leaf, “eco-friendly” in soft lettering, and a promise about the planet, the other says nothing. Most of us reach for the leaf, that instinct is exactly what greenwashing trades on. When the European Commission examined green claims, it found 53% were vague, misleading or unfounded, and 40% had nothing to support them.
The question, whether we are buying washing powder, approving a loan or reading an annual report, is unchanged: does a green claim reflect real impact, or clever marketing?
What Greenwashing Really Means
Greenwashing happens when an organisation presents itself as far greener than it truly is. The United Nations lists the common tactics: vague wording, misleading labels, small improvements dressed up as major ones, and net-zero pledges with no plan. Organisations do this because green sells, while rewriting a label takes an afternoon and rewiring a supply chain takes years.
Everyone else carries the cost: customers pay for benefits they never receive, investors misprice risk, honest businesses lose to rivals who only changed their wording, and the public stops believing anybody.
Green Versus Green-Ish: The Warning Signs
- Vague language: Words such as “eco-friendly”, “green” and “natural” carry no fixed meaning. What cannot be measured cannot be checked.
- No evidence: A claim worth trusting points to something behind it: a figure, a dated report, an assurance statement from someone outside the business.
- Selective disclosure: One recycled product line is announced loudly while the rest of the business stays quiet.
- Misleading imagery: Forests, leaves and earth tones persuade without stating anything
Beyond Green Claims: What Genuine Sustainability Looks Like
Real sustainability is demonstrated through measurable goals, transparent reporting aligned with recognised standards such as GRI or IFRS S1 and S2, independent verification, clear accountability with named owners and board oversight, and honest disclosure of both achievements and challenges.
Why This Matters for Sterling Bank
We finance the economy, so our judgement about green claims travels far. Where a client’s credentials are taken without scrutiny, the bank funds that risk and carries it.
Environmental and social risk management exists for that reason, asking for permits, monitoring data and assurance rather than marketing claims. Sustainable finance earns its name the same way.
Regulators agree, at home and abroad. The Central Bank of Nigeria’s Sustainable Banking Principles have required banks since 2012 to weigh the environmental and social consequences of what they finance, while the Financial Reporting Council of Nigeria phases in mandatory IFRS S1 and S2 reporting. The UK’s Financial Conduct Authority has required sustainability claims to be fair, clear and not misleading since May 2024, while the Competition and Markets Authority can now fine businesses directly for misleading claims.
Before you trust a green claim, ask:
- What exactly is being claimed, and does it cover the product, the brand or the whole business?
- Can the claim be measured, and where are the numbers?
- Who verified those numbers, and are they independent?
- What is being left unsaid about the rest of the operation?
- Is there a plan with a deadline, or only an ambition?
What This Means
Green-ish can be crafted quickly. Real sustainability requires sustained effort, robust data and the honesty to acknowledge where improvement is still needed. The difference becomes apparent overtime, in audits, regulatory reviews and the questions customers and investors ask. Keep asking those questions about the products you buy, the organisation you invest in and the places where you work.
Sustainability is not about looking green. It is about creating measurable, transparent and lasting impact.
Further Reading
- United Nations — Greenwashing: the deceptive tactics behind environmental claims https://www.un.org/en/climatechange/science/climate-issues/greenwashing
- UN High-Level Expert Group — Integrity Matters: net-zero commitments by businesses, financial institutions, cities and regions https://www.un.org/en/climatechange/high-level-expert-group
- European Commission — Green claims https://environment.ec.europa.eu/topics/circular-economy-topics/green-claims_en
- CMA — Making environmental claims about goods and services (the Green Claims Code) https://www.gov.uk/government/collections/how-to-make-environmental-claims-about-products-and-services
- FCA — FG24/3: Finalised guidance on the anti-greenwashing rule https://www.fca.org.uk/publications/finalised-guidance/fg24-3-finalised-non-handbook-guidance-anti-greenwashing-rule
- Central Bank of Nigeria — Nigerian Sustainable Banking Principles https://www.cbn.gov.ng/out/2012/ccd/circular-nsbp.pdf
- Financial Reporting Council of Nigeria — Roadmap and Sustainability Reporting Guideline for IFRS S1 and S2 (Amended 2026) https://frcnigeria.gov.ng/2026/02/26/frc-unveils-amended-roadmap-and-sustainability-reporting-guideline-to-strengthen-adoption-of-ifrs-sustainability-disclosure-standards-in-nigeria/
- UNEP FI — Principles for Responsible Banking https://www.unepfi.org/banking/bankingprinciples/
Author: Hephzibah Adeola Onanuga (HAO) Environmental and Social Risk Management Unit October 2026
