Lessons From Delta’s Greenwashing Lawsuit

Companies need to realize that consumers today are not just looking at labels; they are scrutinizing actions.

Published July 6, 2023 09:02AM EDT

The news of Delta Airlines being slapped with a “greenwashing” lawsuit over carbon neutrality claims exemplifies the important intersection of sustainability and marketing. How has green marketing evolved, and where are we headed?

Green marketing, or environmental marketing, is not new. It burgeoned in the 1970s when environmental concerns captured public attention. Back then, the focus was on product labeling, with companies labeling their products as eco-friendly. However, the absence of regulation led to the proliferation of greenwashing—making false or deceptive claims regarding the environmental benefits of products or services.

Greenwashing surged in the 1980s as environmental buzzwords saturated marketing campaigns. The U.S. Federal Trade Commission then intervened, establishing guidelines necessitating evidence-backed environmental claims. This was an attempt to curb greenwashing, but as the recent lawsuit against Delta Airlines suggests, the practice continues to plague the industry.

The Evolution of Green Marketing

Today, green marketing is evolving into a more substantial commitment to sustainability. Beyond mere labels, companies are integrating sustainability into their business models and operations. This shift is driven by a consumer base that is increasingly environmentally conscious. For instance, The North Face uses recycled materials, Starbucks is cutting waste with compostable cups, and Patagonia declared Earth as its sole shareholder.

However, greenwashing casts a long shadow. It undermines the authenticity of genuine eco-friendly products and hampers environmental activists’ efforts. Consumers, misled into believing they are making green choices, may become complacent. Furthermore, the specter of greenwashing has given rise to “green hushing”—where companies underplay their sustainability initiatives to avoid accusations of greenwashing. This counterproductive silence hampers the collective effort needed for environmental sustainability.

The Dawn of Regenerative Business

Now, as we face environmental crises, it is imperative to move beyond labels and marketing strategies. We need to embrace a new era—that of “regenerative business.” Sustainability, initially focusing mainly on environmental practices, has evolved. Sustainability 2.0 encompassed economic and social pillars, shifting from reactive to proactive, encompassing fair trade, community impact, and involving various departments within organizations.

The new horizon is regenerative business, where sustainability is woven into every fabric of an organization. Here, sustainability drives innovation. It’s not just about mitigating environmental impact; it’s about rejuvenation, creating systems that restore and thrive. This concept heralds an integrated approach involving all stakeholders, especially the workforce, in realizing the organization’s mission. 

This integrated approach translates into creating regenerative business models where commitments to sustainability are not just superficial or for compliance but are the core driving force behind innovation and business practices. Through transparent communication, genuine commitment, and collective effort, businesses can foster trust and actively contribute to environmental sustainability.

Delta’s greenwashing lawsuit should serve as a wake-up call for introspection and change. Companies need to realize that consumers today are not just looking at labels; they are scrutinizing actions. In this age of information, where data is at one’s fingertips, companies can no longer afford to hide behind deceptive marketing.

The Path Forward

The journey from green marketing’s nascence to today’s sustainability-focused practices is notable. However, the path ahead demands more. It calls for an evolution from linear, extractive practices to a circular, regenerative model that encompasses not just environmental, but also social and economic sustainability.

Let Delta’s lawsuit not be just a headline but a catalyst for transformation towards truly sustainable businesses that hone in on the idea of regenerative business models, reinventing green marketing practices for good.

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Gagan Levy is the Founder & CEO of GURU, the leading integrated agency for conscious consumer marketing. He has worked with some of the world’s most impactful purpose-driven movements, brands, and organizations. As former Co-chair of American Sustainable Business Network, one of the country’s most prestigious socially responsible business communities—and creator of B Corp—Gagan leads the way to a next economy that is regenerative, just, and prosperous for all.

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