Green Branding or Greenwashing? A Review of Sustainability Communication Strategies in Developed Economies

Abstract

The proliferation of environmental claims and sustainability commitments by corporations in developed economies has intensified scholarly and regulatory scrutiny of the distinction between authentic green branding and deceptive greenwashing. This qualitative literature review synthesizes contemporary research on sustainability communication strategies in the European Union, the United States, and other developed markets, examining how corporations communicate environmental initiatives and the consequences of misleading claims. Drawing on signaling, legitimacy, stakeholder, and institutional theories, this review analyzes the mechanisms, typologies, and sectoral manifestations of greenwashing in developed economies. The findings reveal that greenwashing has evolved from static consumer-facing claims to dynamic stakeholder management and forward-looking narratives such as net-zero pledges. Regulatory responses, particularly the EU's Corporate Sustainability Reporting Directive and Empowering Consumers for the Green Transition Directive, represent significant anti-greenwashing measures, though implementation challenges persist. Consumer skepticism toward environmental claims is rising, with educated consumers in developed markets increasingly adept at identifying misleading practices. This review identifies critical research gaps, including the need for longitudinal studies, cross-country comparative analyses, and empirical investigation of verification technologies. The findings contribute to theoretical understanding of sustainability communication while offering practical implications for corporations, policymakers, and stakeholders seeking to navigate the complex landscape of environmental claims in developed economies