Greenwashing Undermines Brand Trust, IIM Lucknow Study Finds

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Brands that embellish their environmental efforts are doing more harm than good. A recent study by the Indian Institute of Management Lucknow, in collaboration with institutions in Italy and Saudi Arabia, reveals that consumers are increasingly intolerant of greenwashing — marketing that misrepresents or exaggerates sustainability claims.

The research, published in Business Strategy and the Environment, surveyed 353 U.S. consumers to assess how they react to unverified environmental messaging. The findings were clear: misleading green claims significantly reduce brand trust and discourage sustainable buying, especially among environmentally aware consumers who are more likely to scrutinize corporate behaviour.

The research team employed psychological models, including Attribution Theory and the Elaboration Likelihood Model, to understand how consumers interpret such claims. A key factor was “situational involvement,” or the degree to which individuals personally care about environmental issues. Those with higher involvement reacted more negatively to perceived deception.

“Greenwashing doesn’t just fail to convince; it actively erodes brand equity,” said Sushant Kumar, Assistant Professor of Marketing at IIM Lucknow. “Consumers expect transparency and are quick to withdraw trust when they sense manipulation.”

This finding adds weight to a broader trend. As consumer awareness grows and global regulators demand clearer environmental disclosures, the tolerance for vague or false claims is shrinking. According to Kumar, brands must now focus on credibility, not just narrative. Unsupported green messaging is increasingly viewed as opportunistic rather than aspirational.

The researchers plan to examine next how discovering greenwashing after a purchase influences brand recommendation and long-term loyalty — insights that could prove critical as sustainability becomes central to consumer choice.