Greenwashing in Employer Branding: How Vietnamese Job Seekers and Employers Can Spot and Avoid It

Companies in Vietnam and worldwide are racing to showcase their environmental credentials. Smart branding can inspire trust; false branding, however, can backfire especially in recruitment. Here’s an in-depth look at how greenwashing is reshaping employer branding and what both employers and candidates in Vietnam need to know.

What Is Greenwashing and Why It Matters?

Greenwashing refers to misleading or exaggerated environmental claims aimed at looking eco-friendly without substantive action. Globally, around 95% of "green" products make at least one misleading claim. In Vietnam, while there’s no law explicitly banning greenwashing, regulations on false advertising and consumer protection apply.

Why should this concern us?

• Candidates particularly Gen Z have increasing environmental expectations. A NielsenIQ survey shows 16% of Vietnamese consumers integrate sustainability into long-term priorities and another 24% emphasize it in short-term plans.

• Companies benefit long-term from authentic ESG practices with higher brand value and trust, versus short-lived appeal.

What Happens When Greenwashing Fails?

1. Reputational Damage

A brand’s false claims can spark backlash. In developed markets, greenwashing carries legal and reputational penalties.

2. Candidate Disillusionment

Employees are less inclined to purchase from or work for companies perceived to greenwash.

3. Investor & Auditor Red Flags

Demand for substantiated claims is rising. Without transparency, audit failures or investment withdrawal may follow.

How Candidates Can Spot Greenwashing

Here are five warning signs job seekers should watch for:

Vague Terminology

Buzzwords like “eco-friendly” or “green” without concrete evidence are red flags.

No Third-Party Certification

Lack of credible labels (e.g., Carbon Trust, ISO standards) makes claims suspect.

Disproportional Marketing

Excessive green messaging with minimal results—like spending more on promotions than environmental improvements often signals greenwash.

Isolated Focus

Highlighting one minor eco-metric while ignoring other critical issues (“hidden trade-offs”) is misleading.

Poor ESG Understanding

Nearly 39% of Vietnamese companies still don’t know what ESG means, and 62% don’t understand related regulations. Lack of internal knowledge often leads to greenwashing by default.

Candidate tips:

• Ask for measurable goals (“By when will you reduce carbon emissions by X%?”)

• Check public reports and certifications

• Research news or NGO commentary for greenwash exposure

How Employers Can Avoid Greenwashing

Employers should build authentic ESG strategies. Here’s how:

• Make ESG Governance Real: Incorporate ESG targets into board-level planning and financial contracts.

• Use Third-Party Verification: Apply trusted labels (e.g., Carbon Trust, ISO) and audits to back claims.

• Deliver Transparent Reporting: Go beyond slogans—publish annual ESG reports with data and progress updates.

• Embed Across the Business: ESG isn't just for branding—embed it into HR policies, supply chain management, and workplace safety.

• Communicate Obviously and Honestly: If initiatives are in-progress or limited, say so—honesty builds employer trust.

Why Authentic ESG Gains Pay Off

• Hiring edge: Vietnamese talent increasingly seeks employers with genuine ESG values.

• Brand trust: Strong sustainability perceptions increase company brand value (e.g., Viettel ranks among top SPV in Vietnam: US $347 M).

• Investor interest: Authentic ESG attracts capital and shielding from audit or investor backlash.

FAQ – Boosting Searchability & User Trust

Q1: What is greenwashing in recruitment?

Greenwashing in recruitment occurs when employers exaggerate sustainability credentials in job ads or employer branding without actual environmental backing.

Q2: How can job seekers verify ESG claims?

Look for measurable targets, reliable certifications, ask about initiatives in interviews, and investigate news or third-party assessments.

Q3: Does Vietnam regulate greenwashing?

Vietnam enforces advertising laws that cover misleading claims, but lacks explicit greenwashing laws.

Q4: Why care about ESG as a job seeker?

ESG performance indicates corporate integrity. Strong ESG correlates with better job satisfaction, retention, and corporate stability.

Q5: What practical steps can companies take now?

Start with measurable goals, get certified, publish transparent ESG reports, and weave environmental actions into daily operations.

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References:

1. https://www.russinvecchi.com.vn/publication/greenwashing-in-vietnam-the-growing-consequences/

2. https://www.vietnam-briefing.com/news/greenwashing-in-vietnam-assessing-legal-consequences-and-future-direction.html/

3. https://vir.com.vn/green-consumption-trends-on-the-rise-in-vietnam-117659.html

4. https://www.tatlerasia.com/power-purpose/sustainability/esg-and-vietnamese-enterprises-vn-en

5. https://brandfinance.com/press-releases/viettel-leads-vietnam-brands-with-highest-sustainability-perceptions-value

6. https://en.wikipedia.org/wiki/Greenwashing

7. https://www.lexology.com/library/detail.aspx?g=291deb04-cc1e-4537-9857-a261a3c6a150