Which one of the following best describes the term “greenwashing”?

The correct option is: Conveying a false impression that a company’s products are eco-friendly and environmentally sound.

Understanding "Greenwashing"
The term "greenwashing" is a play on the word "whitewashing" (which means to gloss over or cover up vices or mistakes). In an environmental context, greenwashing refers to the deceptive practice where a company, government, or organization spends more time and money marketing itself as environmentally friendly than on actually minimizing its environmental impact.
It is a marketing spin designed to deceive consumers who prefer to buy goods and services from environmentally conscious brands.

Why the Selected Option is Correct:
1. Core Definition: The practice involves creating a misleading or false perception about the environmental benefits of a product, service, or company policy. This directly matches the description of "conveying a false impression that a company's products are eco-friendly and environmentally sound."
2. Examples of Greenwashing: Common examples include claiming a product is "100% organic" or "natural" when only a tiny fraction of the ingredients fit that description, or using green imagery (like leaves or trees) on packaging to suggest environmental sustainability without any scientific basis.

Why the Other Options are Incorrect:
1. Non-inclusion of ecological/environmental costs in the Annual Financial Statements: This relates to the limitations of traditional economic accounting (often addressed by "Green GDP" or environmental accounting), not a marketing deception.
2. Ignoring the disastrous ecological consequences while undertaking infrastructure development: This describes environmental neglect or poor planning, rather than the deceptive promotion of eco-friendliness.
3. Making mandatory provisions for environmental costs in a government project/programme: This is a positive regulatory measure aimed at environmental protection, which is the opposite of greenwashing.