Greenwashing in Hospitality: What India’s New Guidelines Mean for Hotels and Resorts

Sustainability or Greenwashing?

The hospitality sector has embraced sustainability as a key marketing tool. From “eco-luxury stays” to “plastic-free hotels,” travelers are increasingly drawn to hotels that promise lower environmental impact.

However, not all claims are accurate or verifiable. Many border on greenwashing — the practice of exaggerating or misrepresenting sustainability initiatives.

Recognising this challenge, India’s Central Consumer Protection Authority (CCPA) released the 2024 Guidelines on Greenwashing, which now apply directly to hospitality and tourism businesses.

What Is Greenwashing in Hospitality?

Greenwashing happens when hotels and resorts use environmental claims without sufficient evidence. Such practices mislead consumers and hurt genuine sustainability initiatives.

Examples include:

• Saying “eco-friendly rooms” without explaining what makes them eco-friendly.

• Claiming “plastic-free dining” while still offering plastic water bottles.

• Advertising “carbon neutrality” without a clear offsetting mechanism.

In relation to the hospitality, the guidelines apply to:

• Hospitality providers → Hotels, resorts, homestays, service apartments

• Marketing communications → Ads, websites, brochures, social media posts

• Third parties → Agencies, endorsers, influencers

• Tourism organisation → Tourism boards, Marketing Agencies

Any claim related to sustainability, environment, carbon neutrality, waste management, or eco-certification now falls under scrutiny.

Towel reuse signs are now common sustainability initiatives in hotels

Key Requirements for Hospitality Businesses

1. Substantiation of Claims

• Claims like “green hotel,” “eco-friendly stay,” or “zero carbon” must be backed by certifications (LEED, GSTC, EarthCheck) or verified internal data (energy audits, water tracking).

  
  

2. Specificity in Communication

• Broad claims are not acceptable. Hotels must explain which part of their operations is sustainable — energy, water, waste, or community initiatives.

  
  

3. Disclosures and Transparency

• Marketing should point to detailed disclosures via QR codes, websites, or sustainability reports.

  
  

4. Avoiding Misleading Terms

• Words like eco-luxury, natural, sustainable, carbon-neutral must only be used if standards and benchmarks are met.

  
  

5. Comparative Claims

• If a hotel says “greener than other resorts,” it must disclose what metric is used and how comparisons were made.

More Examples of Greenwashing in Hotels and Resorts (and Corrections)

❌ Misleading Claim	⚠️ Why It’s Wrong	✅ Compliant Version
“100% eco-friendly resort”	Too broad, unverifiable	“Resort runs 75% on solar + has xxxx certification.”
“Natural pool”	Misleading if chemicals are still used	“Pool treated with low-chlorine salt-based system to reduce chemical use by 60%.”
“Zero carbon footprint”	Impossible without full lifecycle data	“We reduced emissions by 35% in 2023; remaining offsets certified by [Agency].”
“Plastic-free dining”	Misleading if packaging/cutlery still use plastic	“Dining outlets use compostable cutlery and refillable glass bottles.”
“Eco-luxury rooms”	Buzzword with no proof	“Rooms built with yyyy-certified materials, insulated glass, and solar water heating.”
“We support local communities”	Vague, no evidence	“80% of our staff are from local villages; 60% of food sourced within 50 km.”
“Green transport for guests”	Misleading if still using diesel cars	“20% of fleet is electric vehicles; rest are BS-VI compliant with offsetting plan.”
“Water neutral hotel”	Exaggerated claim	“Hotel recycles 90% of greywater and harvests rainwater to meet 40% of annual demand.”
“Eco-conscious spa”	Empty phrase	“Spa uses biodegradable oils and organic cotton linens certified by [Authority].”
“Farm-to-table dining”	Misused if not traceable	“Restaurant sources 70% of produce from certified organic farms within 100 km.”

Risks of Greenwashing in Hospitality

• Loss of consumer trust → Guests increasingly fact-check sustainability claims.

• Regulatory penalties → Misleading ads can now invite CCPA action.

• Reputation damage → Negative publicity spreads quickly on social media.

• Missed opportunity → Genuine initiatives lose credibility in a greenwashed market.

Strategic Recommendations for Hotels

• Stricter sustainability mandates in tourism planning and licensing.

• Adherence to recognised global standards like GSTC.

• Third-party certification for claims such as carbon neutrality, waste-free operations, and organic sourcing.

• Regular training for staff & marketing teams to avoid misleading terminology.

• Sustainability audits to align operations with claims.

Customers are becoming increasingly aware of brand labels

The Bigger Regulatory Push

Beyond CCPA’s guidelines, the Parliamentary Standing Committee on Finance (2025) recommended establishing an ESG Oversight Body to monitor and curb greenwashing across industries. Hospitality, given its visibility and consumer base, will likely be one of the first sectors under scrutiny.

Building Trust Through Transparency

For hotels and resorts, the message is clear: sustainability can no longer be a marketing gimmick. Consumers and regulators alike demand proof, transparency, and accountability.

By moving beyond vague claims and adopting credible certifications, hospitality brands can not only comply with the law but also build long-term trust with guests.