Sustainability fails: 10 brands that got it wrong

Sustainability fails and greenwashing scandals have happened to some of the world’s biggest brands.

Unfortunately, as we strive to make our products more environmentally friendly, it’s easy to make mistakes – especially if you aren’t using the right tools for market research or listening to your target audience.

Maybe you introduce a product that’s not in line with your brand image (or customers’ tastes). Or, in your efforts to be green, you switch to different materials that prove to be problematic? Maybe we’re simply unrealistic in our attempts to change consumer behaviour? Then there’s the worst sin of all – greenwashing a product that’s actually causing environmental harm.

In our round-up below, you’ll find examples of brands that suffered all types of sustainability fails and greenwashing scandals – and see the fallout from niche audiences.

But more importantly, you’ll learn how to avoid the common pitfalls when approaching eco-friendly new product development.  

Spoiler alert: most of these fails could have been avoided with data-driven marketing!

TL;DR summary

1. Nike’s ‘Considered’ range

• Nike launched a sustainability line that failed to live up to its eco-friendly claims.
• Takeaway: Ensure sustainability efforts align with product performance to avoid backlash.

2. B&Q’s cat-pee-scented paint

• B&Q and Valspar launched an additive-free paint, but consumers quickly started complaining that it smelled like cat pee.
• Takeaway: Properly understand what target customers think about your products before you launch them.

3. Amazon’s packaging

• Amazon faced criticism for using excessive packaging, contributing to waste despite claims of sustainability.
• Takeaway: Use appropriately sized packaging and sustainable materials to avoid waste and maintain trust.

4. McDonald’s paper straws

• McDonald’s replaced plastic straws with paper ones, but many customers complained they didn’t solve the waste problem and were worse for the environment.
• Takeaway: Assess the full environmental impact of alternatives, not just surface-level changes.

5. Philips Earthlight Fail

• Philips launched an eco-friendly lightbulb but faced backlash as it was found to be less energy-efficient than claimed.
• Takeaway: Ensure product claims are accurate and meet consumer expectations to avoid disappointment.

6. Volkswagen’s ‘Clean Diesel’ campaign

• Volkswagen falsely marketed its diesel cars as environmentally friendly, leading to a massive emissions scandal.
• Takeaway: Honesty is key—don’t misrepresent your products to avoid legal and reputational damage.

7. Nestlé’s Cocoa Plan

• Nestlé’s sustainability initiative to improve cocoa farming had little measurable impact, raising concerns about transparency.
• Takeaway: Make sure sustainability programs are effective and can show concrete results.

8. Shein greenwashing

• Shein faced an investigation for greenwashing over its “evoluShein” collection, with allegations of misleading sustainability claims.
• Takeaway: Be transparent and back up sustainability claims to avoid legal and reputational risks.

9. Drax’s biomass fail

• Drax was investigated for sustainability issues related to the wood used in its biomass power plants, raising concerns over its environmental impact.
• Takeaway: Ensure your supply chain is transparent and sustainable to avoid regulatory scrutiny.

10. H&M greenwashing

• H&M faced criticism for its “Conscious Collection” after a report revealed that many of its sustainability claims were unsubstantiated.
• Takeaway: Ensure sustainability claims are backed by clear evidence and meaningful actions to avoid backlash.

1. Nike

• Year: 2005
• Location: Global
• Category: Product launch

You buy Nike because you’re sporty, because you’re motivated, because you’re style-conscious… you don’t buy Nike because you’re planning on chaining yourself to a tree in an environmental protest. What Nike’s ‘Considered’ range of environmentally friendly shoes failed to consider was its customer base.

The $110 shoes, which were made with brown hemp fibres, were quickly dubbed “Air Hobbits” by critics. Unsurprisingly, they didn’t sell well and were discontinued within a year. Thankfully, Nike didn’t give up on trying to be more sustainable, but it did stop making those initiatives consumer-facing. 

The lesson – if you’re going to push a green product, be sure it aligns with your brand perception and purpose, and check it’s something consumers actually want. 

2. Valspar/B&Q

• Year: 2017
• Location: UK
• Category: Product launch

Chemicals can be bad for the environment, which is why EU law restricts their use in things like paint. In an effort to be compliant, Valspar removed an additive from one of its paint lines… and very quickly regretted it. 

As the weather grew hotter, the brand, and its UK retailer B&Q, were hit with a slew of complaints about smelly rooms. The removal of the additive had allowed bacteria to grow, resulting in what the company described as an “ammonia-like” smell. But according to customers, it smelled exactly like cat pee. To get rid of it, rooms had to be completely redecorated, with Valspar footing the bill.

The lesson – don’t rush out a reformulated product as you try to reduce your environmental impact. Follow the NPD process and take your time to get it right or you can do more harm than good.

3. Amazon

• Year: 2020
• Location: Global
• Category: Packaging

An Amazon customer who bought nine rolls of window film to make her home more energy efficient got a surprise when they arrived at her door in nine separate boxes. Despite being small enough to fit in just one box, staff at the Amazon fulfilment centre opted to pack them individually.  

Maybe they thought the customer would enjoy a tower of packages being delivered? She did not. “It’s completely outrageous,” she said of this sustainability fail. “Surely Amazon can do better to reduce their wrapping wastage and be more environmentally friendly.” Other people also blasted the retailer online for its unnecessary packaging. 

The lesson – making your product packaging as environmentally friendly as possible is great, but don’t forget what happens once it’s bought online and shipped to customers. 

4. McDonald’s

• Year: 2018
• Location: UK
• Category: Product modification

In a move to be more eco-friendly, McDonald’s announced it would cut plastic straws from its locations in the UK and Ireland, replacing them with a paper alternative. The fast food chain uses 1.8 million straws a day in the UK, so they touted the initiative as a significant step in helping to reduce single-use plastic.

But there’s a problem; where the old plastic straws could be recycled, the new paper ones can’t. Customers are told to put them in the general waste. And on top of the straws not being a greener choice, they perform poorly, quickly going soggy. A petition to reinstate the plastic straws currently has nearly 57,000 signatures. 

The lesson – don’t destroy trees to save the ocean. Take time to consider the lifecycle and overall emissions of alternatives before ditching plastic- especially if you’re launching a new product.

5. Philips

• Year: 1994
• Location: Global
• Category: Product launch

Switching to energy-efficient light bulbs makes sense… but not when it means having to replace every light in your house. The Philips EarthLight was shaped so that it was incompatible with almost every conventional lamp at the time. 

So, not only were customers expected to shell out $15 per bulb (when regular incandescent ones cost less than a dollar), they also had to invest in new lamps. Unsurprisingly, only the most committed green consumers were willing to do this and the EarthLight was quickly extinguished. 

The lesson – it’s not an environmentally friendly product if your customers have to replace items they already own to use it. Testing pricing is also important because consumers struggle to be green when it hits them in the pocket.

6. Volkswagen

• Year: 2015
• Location: Global
• Category: Marketing campaign

Remember when we used to think diesel cars were better for the environment? That’s the power of marketing. When brands greenwash their products though, things can dramatically backfire. 

Volkswagen admitted it had equipped 11 million of its diesel cars with software that could be used to cheat on emissions tests, all while merrily marketing the vehicles as “clean diesel”. When the scandal came out, the carmaker was hauled through the courts and ordered to refund eco-minded consumers more than $11 billion.

The lesson – if you’re going to make green claims, make sure you can back them up. And absolutely, under no circumstances, lie to consumers!

7. Nestlé

• Year: 2019
• Location: Global
• Category: Sourcing initiative

If you’re going to stick a label on your product stating that ingredients are sustainably sourced, you’d better make sure they are. In 2019, a class action lawsuit was filed against Nestlé USA, claiming that the food giant’s supply chain involves child and slave labour. And it’s not the first time Nestle has faced these allegations. 

Nestlé states it’s actively fighting against child and slave labour but acknowledges it’s a problem in the cocoa supply chain.

It’s not just an issue for Nestlé – the world’s chocolate companies have all missed deadlines to uproot child labour from their supply chains, but placing a ‘sustainably sourced’ seal on chocolate products has left consumers with a bitter taste in their mouths. 

The lesson – efforts to become more sustainable must be applied to your whole supply chain – and it’s vital to be transparent about any shortcomings. 

8. Shein

• Year: 2024
• Location: Italy
• Category: Marketing campaign

In October 2024, Shein, the fast-fashion giant, came under investigation by Italy’s antitrust authority, AGCM, over allegations of greenwashing. The investigation specifically focused on misleading sustainability claims regarding Shein’s “evoluShein” collection.

Environmental groups have long criticized Shein’s rapid fashion model, claiming it encourages overconsumption and creates massive waste, despite its claims of sustainability.

The lesson – Don’t exaggerate sustainability efforts in marketing. Ensure your claims are backed by transparency and evidence to build trust with consumers and avoid legal repercussions. 

9. Drax Group

• Year: 2024
• Location: United Kingdom
• Category: Sustainability initiative

Drax Group, a major UK-based energy provider, found itself in the spotlight in 2024 due to concerns over the sustainability of the wood used in its biomass operations.

The UK’s energy regulator, Ofgem, launched an investigation and uncovered reporting failures, leading to a £25 million payment by Drax and a mandate for a full audit of their supply chain. The scandal has sparked a renewed debate over the environmental viability of biomass energy as a “green” alternative.

The lesson – Sustainability efforts need to be more than just surface-level claims. Transparent supply chain practices and independent verification are key to maintaining credibility in the eyes of consumers and regulators.

10. H&M

• Year: 2021
• Location: Global
• Category: Marketing campaign

In June 2021, the Changing Markets Foundation accused H&M of greenwashing in a report revealing that 60% of the brand’s sustainability claims were unsubstantiated or misleading.

The investigation focused on H&M’s “Conscious Collection” and other eco-friendly initiatives, claiming that these efforts lacked transparency and failed to meet true sustainability standards. This sparked widespread criticism of the fashion industry’s greenwashing practices.

The lesson – Consumers are becoming increasingly savvy, and claims of sustainability without tangible proof can backfire. Make sure sustainability initiatives are meaningful and communicated with full transparency.

How to avoid greenwashing and sustainability fails

To avoid falling into the trap of greenwashing, brands need to ground their sustainability claims in research and real-world evidence. Here’s how you can make sure your sustainability efforts are genuine and impactful:

1. Conduct product development research
   Before launching new products or making sustainability claims, run in-depth research to understand consumer perceptions and expectations. Testing your product’s environmental impact, from materials to production processes, ensures that your claims match the actual performance.
2. Test sustainability claims
   Running claims testing helps gauge whether your sustainability messaging resonates with your audience and, more importantly, if it’s credible. Use consumer surveys to test how well your sustainability claims are understood and whether they align with your target audience’s values.
3. Leverage ongoing feedback
   Sustainability is an evolving journey. Regularly collect consumer feedback to refine your approach and stay aligned with their evolving expectations. If consumers feel your claims are misleading, it’s crucial to pivot quickly and authentically.

By checking in with your target customers, you can build a truly sustainable brand that resonates with conscious consumers, while ensuring your claims are transparent and trustworthy.

No more greenwashing, just honest sustainability.

Check out our guide to conducting a great product demand analysis to get started…