Sustainability is the operational reality of the next decade. As Indian brands step onto the global stage, those that lead will be the ones that close the gap between intent and evidence. In the new economy, the brands that win will not be those with the loudest stories, but those with the shortest distance between their promise and their proof.

In India’s push for a greener economy, the greatest risk to brand equity isn't a lack of intent; it is the structural gap between high-level ambition and the evidence-grade data required to back it up. According to a new industry report by the HOOOP Collective, Green Is the New Lie, while the appetite for sustainability is at an all-time high, there is a lack of infrastructure to support it.

Navigating the ‘verification gap’

Many organisations find themselves in a ‘verification gap’ not due to a lack of ethics, but due to a lack of decision-grade intelligence, says the report.

A survey of Indian marketers by the sustainability and marketing collective revealed the extent of this gap. Over a third of the industry relied on internal checks or no verification at all to verify sustainability claims, despite strict CCPA (Central Consumer Protection Authority) guidelines. 15% of claims go live with zero verification, posing a massive legal liability.

Misleading claims are now illegal, with CCPA fines up to INR 50 Lakhs for repeat offenses, according to HOOOP.

Ignorance is no longer a defense, as a single exposé can shatter brand credibility instantly. The report stressed that a significant 77% of consumers would stop buying a brand if it were caught greenwashing.

This gap is not driven by unethical intent but by the absence of decision-grade intelligence, says the study. Organisations and marketers are being asked to validate outcomes they cannot scientifically prove, exposing them to regulatory, reputational, and financial risks.

This isn't a 'failure of communication', but a 'capability gap' that affects the entire enterprise, noted the study.

Greenwashing: why does it happen

The report cites a ‘lack of reliable data’ as the leading cause of greenwashing, followed by ‘budget constraints’, ‘client pressure’ and ‘tight deadlines.’ Currently, many teams navigate ad-hoc assessments to meet deadlines, reveals the survey.

The study also found that organisations/respondents working on ‘Carbon neutral/net zero’ campaigns were among the most likely to rely on internal checks rather than third-party standards, thus uncovering a specific risk zone around future-facing commitments. High-ambition claims without high-integrity systems are simply liabilities waiting to be called in.

Greenhushing - reclaiming the value of silence 

On the other end of the spectrum are organisations that indulge in ‘Greenhushing,’ or purposefully staying silent about genuine progress to avoid scrutiny. A significant 70% of high-performing Indian brands with strong credentials now engage in greenhushing, the study found.

While this may feel like retreating to safety, it is actually ‘value leakage’ because they risk losing their ‘sustainability perception value’ by staying quiet, the report pointed out.

When verified progress is under-communicated, it creates a Sustainability Gap Value (SGV), it emphasised.

Brands like the Tata Group have leveraged ‘Vocal Green’ status to create value in Sustainability Perception Value (SPV). If a brand is doing the work but hiding it to avoid scrutiny, it is leaving equity on the table, stressed the report.

To avoid these sustainability communication pitfalls, the research offers solutions for the modern CXO, with the goal being to ensure that the organisation’s capabilities keep pace with its storytelling. 

This requires a fundamental pivot:

• From narratives to signals: Prioritising verifiable data points over adjectives.
• From campaigns to systems: Integrating sustainability into the operational core, creating a ‘Green Review Checklist’ to audit every claim against the ‘seven sins of Greenwashing.’
• From intention to evidence: Moving toward the ability to audit, validate, and stress-test claims before they reach the public domain.

Shruti Sharma, associate professor, TERI School of Advanced Studies, states, “The biggest threat to Indian brands today is not greenwashing by intent, but greenwashing by design where ambition races ahead of evidence. In a world of global value chains, sustainability without verifiable data is no longer aspiration; it is exposure.”

The ‘Green Is the New Lie’ report is based on a survey and interviews of 150 Indian marketers, supported by claim analysis from ASCI, research and guidance from TERI SAS and Everloop.Agency (UK). This research analyses both Indian and global greenwashing trends, pairing technical data with a deep-dive into the evolving impact on climate finance and international trade standards.

The HOOOP Collective is a sustainability and marketing collective working at the intersection of ESG, policy, regulation, and behaviour change. It brings together minds from sustainability, regulatory, marketing and communications to help organisations operate and communicate with credibility across markets; making impact measurable, communicable, and desirable.