What’s ‘greenwashing?’

Q:

What’s “greenwashing”? — R.R., Odessa, Texas

A:

According to Dictionary.com, a “greenwash” is “a superficial or insincere display of concern for the environment that is shown by an organization,” while the Cambridge Dictionary says that a company engaged in greenwashing aims “to make people believe that [it] is doing more to protect the environment than it really is.”

Consumers have grown more concerned about the environment in recent years. So while some companies are making their products more environmentally friendly (such as by using more recycled materials or reformulating packaging), others are exaggerating their dedication to the environment.

As an example, a company may stress a (possibly small) positive thing it has done while not mentioning many negative things. Carmakers may tout the more fuel-efficient vehicles they’re making without revealing that they’re lobbying hard against rules that require them to do so. A big coffee seller touted new cup lids that did away with plastic straws, but those lids reportedly used more plastic than the old lid-plus-straw combo.

Q:

What percent of my income should I invest? — Q.F., Brattleboro, Vt.

A:

The answer is different for each of us, depending in part on our age, income and projected needs in retirement. Consider aiming for 20 percent of your income. If you’re young, that can get you started saving early, and all that money will have decades in which to grow, which can be extremely powerful. If you’re older, there’s a good chance you’re behind on preparing for retirement, so saving aggressively now can help make up for some lost time.

All investors would do well to consider investing via low-fee broad-market index funds, such as those that track the S&P 500 (or the entire market).