Q. Which one of the following best describes the term "greenwashing"? (UPSC Prelims 2022)
Answer: Conveying a false impression that a company's products are eco-friendly and environmentally sound
Notes: The correct answer is [A] Conveying a false impression that a company's products are eco-friendly and environmentally sound.The term "greenwashing" is a play on the word "whitewashing," used to describe deceptive marketing tactics.

• Definition (Statement A – Correct): Greenwashing occurs when an organization spends more time and money on marketing itself as environmentally friendly than on actually minimizing its environmental impact. It is a deceitful advertising gimmick intended to mislead consumers who prefer to buy goods and services from environmentally conscious brands.
• Common Tactics: It often involves using vague terms like "natural," "eco-friendly," or "sustainable" without specific evidence, or using green imagery (like leaves and forests) on packaging to imply environmental benefits that do not exist.
• Statement B – Incorrect: The non-inclusion of environmental costs in financial statements is generally referred to as "Environmental Accounting" failure or the presence of "Negative Externalities."
• Statement C – Incorrect: Ignoring ecological consequences during infrastructure development is often termed as "Environmental Negligence" or "Ecological Oversight."
• Statement D – Incorrect: Making mandatory provisions for environmental costs is a regulatory or "Green Accounting" practice, often seen in Environmental Impact Assessments (EIA).

The term was coined by environmentalist Jay Westerveld in 1986. Today, with the rise of ESG (Environmental, Social, and Governance) investing, regulatory bodies like SEBI in India are tightening norms to prevent companies from misleading investors through greenwashing.