As we move into a time where carbon footprints are becoming trendy among corporations, we have begun to see more buzzwords like “earth-friendly,” “biodegradable,” “sustainable,” and “eco-friendly” being woven into brand messaging. Among the S&P 500 companies listed in 2020, 92% published sustainability reports, representing most of the products, food, and services we use daily. Unfortunately, research by the UK’s Competitions and Marketing Authority (CMA) tells us that up to 40% of green claims are misleading, exaggerated, or cannot be verified at all.
What is greenwashing?
The term “greenwashing” was coined in 1986 by acclaimed environmentalist Jay Westerveld when he visited Fiji and noticed his hotel was asking guests to reuse their towels as a cost-saving measure disguised as environmental consciousness. When a company spends more time on marketing moves than making an actionable environmental difference, they are perpetuating greenwashing. Greenwashing goes beyond words to appear in many manipulative marketing approaches, from “earth tone” aesthetic products to “net-zero” production claims that are ambiguous at best.
Indicators of a truly “green product”:
- The absence of toxic materials or ingredients
- Actionable, documented, and transparent sustainability statements
- Product designed to be repaired or reused, or the company offers an end-of-life program to take it back
- Minimal packaging
What damage does greenwashing do?
The U.S. Federal Trade Commission (FTC) published a Green Claims Guide for U.S. businesses that issues guidance for companies who have legitimate sustainability claims to make. States are also acting against greenwashing, with California passing legislation that will shine a spotlight on recyclability claims. GreenPrints’ Business of Sustainability Index tells us that:
- 77% of Americans are concerned about the environmental impact of the products they buy
- 75% of millennials are willing to pay more for an environmentally sustainable product
- 74% of Americans say they’re not sure how to determine environmentally friendly products
It serves all corporations, especially those with fast-moving consumer goods, to make greenwashing claims and appeal to consumers who care about sustainability issues. However, claims should pass an external check. Can the claim be substantiated? Can their process be vetted by a third party?
How to not be eco-manipulated
Here are a few quick ways to vet a purchase for true sustainability value:
- Look for third-party validation (i.e., Green Seal Certified, Cradle to Cradle)
- Look beyond the buzzwords for concrete facts
- Don’t be fooled by imagery like leaves or an earthy color scheme
- Be aware of the “bait and switch” where companies make a positive claim to draw attention away from a negative impact
Take action with ZeroMe
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