Global Executives Say Greenwashing Remains Rife

Most global executives think greenwashing is widespread in their industry, and despite customers becoming more vocal about preferring sustainable brands, many companies are cutting corners on their environmental, social and corporate governance initiatives.

Nearly three-quarters of executives said most organisations in their industry would be caught greenwashing if they were investigated thoroughly, according to a survey of nearly 1,500 executives across 17 countries and seven industries conducted in January by the Harris Poll on behalf of Google Cloud.

The risk of greenwashing is increasing with crackdowns on overstated green claims on both sides of the Atlantic. Despite that threat, the figures are consistent with last year’s findings: Nearly 60% say their own organisation is overstating its sustainability methods. While for some it may be intentional, most say it is instead often due to setting sustainability goals or pledges without a concrete plan to reach them.

“There are actors that are maybe intentionally overstating what they’re doing, but I honestly think for the most part, companies are sincere—they’ve set their goals, they’re working towards them, but they don’t always have the data to be transparent,” said Kate Brandt, chief sustainability officer at Google.

The survey gives insight into where companies are in their sustainability efforts. A little more than a quarter are developing their sustainability programs, 22% have a plan they are implementing, another 22% are able to measure its impact, and 14% are in the final stage of optimising their plan based on measured outcomes. In contrast, nearly a tenth plan to start developing their sustainability plan in the near future, while the remaining 6% don’t have a plan or any intention to come up with one soon.

Nearly three-quarters of executives said they want to advance sustainability efforts but don’t actually know how to go about doing it. Top tools identified to improve their ability were having a dedicated sustainability leader, support from senior management, advanced measurement tools, and education for employees and executives. And the two main ways they expect advancement is through technology innovation as well as investment in sustainable operations or services.

With nearly a decade of experience as a CSO, Ms. Brandt said the survey findings reinforced her point of view on how a company can set itself up to be successful. Businesses need strong governance powered by good data and metrics and a dedicated sustainability leader to be the center of gravity but one who can also embed sustainability inside business functions.

Most executives surveyed—85%—said customers and clients are becoming more vocal about their preference for engaging with sustainable brands. However, economic uncertainty means that business leaders have increased their focus on customers, revenue and growth, although ESG issues remain one of businesses’ top three priorities.

While an earlier survey by industrial conglomerate Honeywell International Inc. found that sustainability budgets at most companies were relatively insulated from cuts, the more recent Google Cloud survey indicates things may have changed. Two-thirds of executives in the latest survey said they are having to cut corners on sustainability initiatives and 45% said the economy is negatively affecting their organisations’ sustainability efforts.

“Essentially when times are getting hard, you get to see who’s serious about this agenda and those who are paying lip service or perhaps accidentally overstating their efforts,” said Justin Keeble, managing director of global sustainability at Google Cloud.

Wedding planner Sterling Boulet has some advice for brides-to-be regarding lab-grown diamonds, which cost a fraction of the natural ones.

“If you’re trying to get your man to propose, they’ll propose faster if you offer this as an option,” says Boulet, of Raleigh, N.C. Recently, she adds, a friend’s fiancé “thanked me the next three times I saw him” for telling him about the cheaper lab-made option.

Man-made diamonds are catching on, despite some lingering stigma. This year was the first time that sales of lab-made and natural mined loose diamonds, primarily used as center stones in engagement rings, were split evenly, according to data from Tenoris, a jewellery and diamond trend-analytics company.

The rise of lab-made stones, however, is bringing up quirks alongside the perks. Now that blingier engagement rings—above two or three carats—are more affordable, more people are dealing with the peculiarities of wearing rather large rocks.

An engagement ring made with a lab-grown diamond at Ada Diamonds in New York City. PHOTO: CAM POLLACK/THE WALL STREET JOURNAL

Esther Hare, a 5-foot-11-inch former triathlete, sought out a 4.5-carat lab-made oval-shaped diamond to fit her larger hands as a part of her vow renewal in Hawaii last year. It was a far cry from the half-carat ring her husband proposed with more than 25 years ago and the 1.5-carat upgrade they purchased 10 years ago. Hare, 50, who lives in San Jose, Calif., and works in high tech, chose a $40,000 lab-made diamond because “it’s nuts” to have to spend $100,000 on a natural stone. “It had to be big—that was my vision,” she says.

But the size of the ring has made it less practical at times. She doesn’t wear it for athletic training and swaps in her wedding band instead. And she is careful to leave it at home when traveling. “A lot of times I won’t take it on vacation because it’s just a monster,” she says.

The average retail price for a one-carat lab-made loose diamond decreased to $1,426 this year from $3,039 in 2020, according to the Tenoris data. Similar-sized loose natural diamonds cost $5,426 this year, compared with $4,943 in 2020.

Lab-made diamonds have essentially the same chemical makeup as natural ones, and look the same, unless viewed through sophisticated equipment that gauges the characteristics of emitted light.

At Ritani, an online jewellery retailer, lab-made diamond sales make up about 70% of the diamonds sold, up from roughly 30% two years ago, says Juliet Gomes, head of customer service at the company, based in White Plains, N.Y.

Ritani sometimes records videos of the lab-diamonds pinging when exposed to a “diamond tester,” a tool that judges authenticity, to show customers that the man-made rocks behave the same as natural ones. “We definitely have some deep conversations with them,” Gomes says.

Not all gem dealers are rolling with these stones.

Philadelphia jeweller Steven Singer only stocks the natural stuff in his store and is planning a February campaign to give about 1,000 one-carat lab-made diamonds away free to prove they are “worthless.” Anyone can sign up online and get one in the mail; even shipping is free. “I’m not selling Frankensteins that were built in a lab,” Singer says.

Some brides are turned off by the larger bling now allowed by the lower prices.When her now-husband proposed with a two-carat lab-grown engagement ring, Tiffany Buchert, 40, was excited about the prospect of marriage—but not about the size of the diamond, which she says struck her as “costume jewellery-ish.”

“I said yes in the moment, of course, I didn’t want it to be weird,” says the physician assistant from West Chester, Pa.

But within weeks, she says, she fessed up, telling her fiancé: “I think I hate this ring.”

The couple returned it and then bought a one-carat natural diamond for more than double the price.

Couples find that lab-grown diamonds have made it more affordable to get engaged. PHOTO: CAM POLLACK/THE WALL STREET JOURNAL

When Boulet, the wedding planner in Raleigh, got engaged herself, she was over the moon when her fiancé proposed with a 2.3 carat lab-made diamond ring. “It’s very shiny, we were almost worried it was too shiny and was going to look fake,” she says.

It doesn’t, which presents another issue—looking like someone who really shelled out for jewellery. Boulet will occasionally volunteer that her diamond ring came from a lab.

“I don’t want people to think I’m putting on airs, or trying to be flashier than I am,” she says.

For Daniel Teoh, a 36-year-old software engineer outside of Detroit, buying a cheaper lab-made diamond for his fiancée meant extra room in his $30,000 ring budget.

Instead of a bigger ring, he got her something they could both enjoy. During a walk while on an annual ski trip to South Lake Tahoe, Calif., Teoh popped the question and handed his now-wife a handmade wooden box that included a 2.5-carat lab-made diamond ring—and a car key.

She put on the ring, celebrated with both of their sisters and a friend, who was the unofficial photographer of the happy event, and then they drove back to the house. There, she saw a 1965 Mustang GT coupe in Wimbledon white with red stripes and a bow on top.

Looking back, Teoh says, it was still the diamond that made the big first impression.

“It wasn’t until like 15 minutes later she was like ‘so, what’s with this key?’” he adds.

Global Executives Say Greenwashing Remains Rife

Nearly three-quarters of corporate leaders say most organisations in their industry would be caught greenwashing if they were investigated thoroughly

Couples find that lab-grown diamonds make it cheaper to get engaged or upgrade to a bigger ring. But there are rocky moments.