Green, but Trusted? The Impact of Carbon Neutrality Efforts on Brand Loyalty and the Risk of Greenwashing

Purpose: This study investigates the impact of corporate carbon neutrality initiatives on brand loyalty, focusing specifically on the mediating roles of brand image and brand attitude, while addressing the critical issue of greenwashing.Research design, data, and methodology: A quantitative research method was employed, collecting data through an online survey administered to 627 general consumers in Korea. Respondents were selected through a two-stage screening process to ensure a valid understanding of carbon neutrality concepts. Measurement items for corporate carbon neutrality efforts, brand image, brand attitude, and brand loyalty were adopted from validated scales. Structural equation modeling (SEM) was applied using SPSS 25.0 and AMOS 24.0 software to analyze hypotheses and assess reliability and validity.Results: Empirical findings revealed that corporate carbon neutrality policies and management efforts significantly enhanced brand image. However, these initiatives showed limited direct effects on brand attitude and loyalty. Notably, achievements in carbon neutrality were found to have no positive impact on brand perceptions, highlighting the potential negative repercussions associated with greenwashing practices. Furthermore, brand image positively influenced brand attitude and loyalty, underscoring its central role in shaping consumer perceptions.Implications: The results emphasize the necessity of transparency and authenticity in corporate sustainability communications. Companies should prioritize genuine carbon neutrality efforts and effective policy implementation rather than overstated sustainability claims to avoid the detrimental effects of greenwashing. Practically, businesses integrating authentic sustainability strategies into their branding can enhance consumer trust and long-term loyalty, achieving both environmental and economic sustainability.