Which statement defines greenwashing?

• A. Misleading environmental claims
• B. Making false claims about profits
• C. Environmental certifications with audits
• D. Green product labeling required by law

Answer: (A)

Greenwashing happens when a company makes environmental claims that are misleading, exaggerated, or not supported by evidence. The statement that best defines greenwashing is that it involves misleading environmental claims. Companies do this to appear more environmentally friendly than they really are, shaping perceptions of customers, investors, and regulators.

Why the other options don’t fit: claiming false profits targets deception about financial performance, not environmental impact. Environmental certifications with audits are designed to verify and legitimize claims, not mislead. green product labeling required by law is a regulated way to inform consumers and ensure accuracy, not a deceptive practice.