Greenwashing

In recent years, global economic shifts have pushed sustainability to the forefront of public discourse. Today, it’s one of the most popular buzzwords in both corporate and community communications. Riding this wave, more and more businesses and organizations are trying to present themselves as “green.” While some genuinely pursue environmentally conscious goals, unfortunately, many are only interested in the appearance of sustainability.

This phenomenon is just as present in the energy sector. But how can we distinguish truly sustainable energy communities (ECs) from those that only claim to be green? In this article, we take a closer look at that very question.

What Is Greenwashing?

The term greenwashing was coined in the 1980s by American environmentalist Jay Westervelt. He observed that a hotel encouraged guests to reuse their towels under the guise of protecting the environment. However, the hotel made no effort to apply environmentally conscious practices in other areas, often engaging in wasteful operations. Westervelt realized that the real motive wasn’t ecological responsibility, but cost-saving and marketing appeal.

At its core, greenwashing is when an organization, company, or even a community project presents itself as eco-friendly without having any real, measurable environmental impact to support that image.

What Makes an Energy Community Sustainable?

An EC is a local initiative where members collectively produce, share, and consume energy, usually from renewable sources like solar power. These communities are sustainable because their energy sources are practically inexhaustible, their operations are not polluting, and ideally, they can meet their own energy needs independently from the grid.

Besides cutting down on CO₂ and other greenhouse gas emissions, such communities also promote local self-sufficiency. Their goal isn’t just reducing costs or improving energy security, but also creating environmental and social benefits.

Key Traits of Genuine Sustainability

At first glance, it can be difficult to tell if an organization is truly committed to sustainability or just using it as a marketing tool. But by taking a deeper look at its operations and its impact - both direct and indirect - it becomes easier to tell the difference.

Here are the main features of a truly sustainable project:

Transparency: Clear and regularly updated reports on finances, energy use, distribution, and decision-making processes. These should be accessible not just to community members but also to external parties. Transparency should be more than an ideal; it must be a verifiable practice.

Community Participation: Members are involved in both strategic and day-to-day decisions. This democratic participation boosts engagement and long-term stability.

Positive Local Impact: The project stimulates the local economy, creates jobs, and fosters social inclusion. At the same time, it listens to local needs and cooperates with both participating and non-participating residents.

Reliable Measurement: The project publishes data such as carbon footprint analyses and energy efficiency reports. These documents cover not just operations but the entire project lifecycle and are available for public scrutiny.

Accountability: Independent audits, certified standards, and civil oversight mechanisms ensure that the community has a meaningful role in evaluating and influencing the project.

Long-Term Commitment: It is built on a sustainable business model that doesn’t rely on temporary subsidies. Its goals go beyond short-term profits, aiming to generate lasting environmental and social value.

Technological Innovation: The project embraces new technologies - not for show, but to improve efficiency, reduce environmental harm, and enhance community value.

What Does a Greenwashed Project Look Like?

Sustainable and greenwashed projects each have their own signs, you just have to know what to look for.

Here are some red flags:

Lack of Transparency: No accessible data, outdated documentation, or vague objectives. The operation cannot be properly reviewed, neither by professionals nor the public, leading to a lack of trust.

Overly Promotional Messaging: Buzzwords like “green,” “eco-friendly,” or “sustainable” are used excessively, without being backed by facts or results. These messages aim to mislead rather than inform.

Missing Community Oversight: Members have no real influence on operations. Instead, an external investor pulls the strings. The “community” label is only symbolic—decision-making is centralized and top-down.

Short-Term, Profit-Driven Goals: These projects prioritize quick returns over long-term sustainability. Decisions are based on financial interests rather than environmental or social benefits.

Questionable Funding Sources: Backing comes from companies that rely on fossil fuels or have a track record of environmental harm. This undermines the credibility of the project and contradicts its supposed values.

Ineffective “Green Gestures:” For example, installing solar panels on a poorly insulated building. The environmental impact is negligible, serving more as a visual gimmick than a functional improvement.

False Claims: Promises like “100% green energy” are made without methodology or verifiable performance. These misleading claims can easily fool the untrained eye.

Unenforceable Promises: There’s no legal or contractual obligation ensuring that project commitments are honoured. As a result, operators can break promises without consequences.

Outdated Technology: The project uses systems that no longer meet modern efficiency standards, resulting in losses. This puts both environmental goals and community interests at risk.

Exclusionary Design: The project doesn’t address social inequality and is only accessible to wealthier groups. This contradicts the original inclusive spirit of community energy initiatives.

A truly sustainable EC must be built on transparency, community participation, measurability, and long-term vision. In contrast, greenwashing is only a surface-level tactic, often just a marketing ploy, that brings no real social or environmental value. And that’s not its aim.

If we want a genuinely sustainable energy future, we need to foster critical thinking, active community involvement, and a strong culture of accountability.