Taking the opportunity of the business and technological innovation event, the Valencia Digital Summit 2022 in which more than 1,500 startups, 250 investors and 150 corporations participated, as well as 300 presentations by technology leaders from different countries, Dcycle developed and presented an algorithm that, through voice, detects when a company is doing greenwashing or is truly sustainable. The goal was to raise awareness about whether the sustainability strategies applied within companies are appropriate, or not.
Why this dynamic at an innovation event?
At Dcycle we understand sustainability through data and technology, which is why we created an innovative dynamic in which, in just one minute, you tell your business presentation and how you approach sustainability in your company to a voice device that detects if you are greenwashing or if you are sustainable.
We challenged each of the people who passed by the stand, which we shared with BStartup by Banco Sabadell, to present themselves and tell us what kind of strategies they are carrying out and what measures they are implementing in terms of mobility, energy, emissions measurement, reduction and more. The algorithm then provided an analysis and categorization. Depending on how close or far they were from greenwashing, the results were communicated on a scale from greenwasher (score 0) to sustainable (score 10).
In addition, we opted for an action that promotes transparency, sending participants content that the companies themselves could share on their social networks. These results invite them to rethink whether they are really doing everything they can and help guide SMEs to face the sustainable revolution.
What is greenwashing and why does it matter?
Greenwashing refers to the practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service or company. It is a growing concern for regulators, investors and consumers alike. As sustainability becomes a competitive advantage, some organizations exaggerate or fabricate their green credentials without implementing real change.
The consequences of greenwashing go beyond reputational damage. With the introduction of the EU Green Claims Directive and increasingly strict advertising regulations across Europe, companies caught making unverified environmental claims face legal penalties and loss of consumer trust. For businesses that are genuinely working toward sustainability, greenwashing by competitors creates an uneven playing field and undermines the credibility of the entire sector.
This is precisely why tools that help distinguish authentic sustainability efforts from superficial claims are so valuable. The greenwashing detector was designed to start that conversation in an accessible and engaging way.
How the greenwashing detector works
The algorithm behind the greenwashing detector evaluates several key indicators when analyzing a company’s sustainability claims:
- Concrete metrics vs. vague language: Companies that can cite specific data points (emissions measured, reduction percentages, certified offsets) score higher than those using generic terms like “eco-friendly” or “green.”
- Scope of measurement: Organizations that measure across all three emission scopes (direct, energy-related, and value chain) demonstrate a more comprehensive approach than those focused only on easy-to-measure areas.
- Reduction targets: Having defined, time-bound reduction targets aligned with frameworks like Science Based Targets indicates genuine commitment.
- Third-party verification: Claims backed by independent audits or certifications (such as ISO 14064 or TÜV Rheinland) carry more weight than self-reported data.
- Action vs. intention: The algorithm distinguishes between companies that have already implemented sustainability measures and those that only express future intentions.
While the one-minute format at the Valencia Digital Summit was designed to be quick and engaging, it illustrated an important principle: sustainability should be measurable and verifiable, not just a marketing message.
Moving from awareness to action
The greenwashing detector was more than a novelty at a tech event. It represents the approach that Dcycle takes with every client: sustainability must be grounded in data. Without accurate measurement, it is impossible to set realistic reduction goals or verify progress over time.
For companies looking to move beyond vague sustainability promises, the first step is always measurement. Dcycle’s automated data collection platform helps businesses quantify their environmental impact across all scopes, providing the transparent data foundation that separates genuine sustainability from greenwashing.
Whether your company is just beginning its sustainability journey or looking to improve existing reporting, having verified data is what makes the difference. Request a demo to see how Dcycle can help your organization build a credible, data-driven sustainability strategy.
Sustainability is within everyone’s reach, but only when it is backed by real numbers.
