As advertising regulators, consumer watchdogs and even governments take a tougher stance, the risks of getting it wrong grow significantly; and the pressure is on communicators to up their game and back up their claims.
It’s officially, and legally, getting harder for brands to greenwash. In Europe, the EU
Parliament has just voted to ramp up
regulation
to deter companies from making ‘carbon-neutral’ claims that can so easily
mislead
consumers
into believing the products they are buying are good for the environment.
Proposed new anti-greenwashing rules – said to represent a “significant victory
for consumers and the environment” – were voted by an overwhelming
majority
of 544 votes in favour, 18 against and 17 abstentions.
This paves the way for EU nations to adopt their own laws that will ban dubious
claims and “strengthen the fight against greenwashing by banning practices that
mislead consumers on the actual sustainability of products,” as put by EU
Justice Commissioner Didier
Reynders. The move will
effectively ban the use of generic ‘green’ marketing claims such as
‘environmentally friendly,’ ‘natural,’ ‘biodegradable’ and ‘eco,’ if they are
not supported by evidence. Brands won’t be able to suggest a whole product or
service is ‘sustainable’ when only a part of it is, either. And only official
sustainability certification schemes will be recognised when it comes to
marketing claims.
Where carbon offsetting is used, companies will no longer be able to make
‘net-zero’
or ‘carbon-neutral’ claims, which have long been criticised by campaign groups
for seriously misleading consumers. In fact, banning the use of offsets as the
basis for carbon-neutral claims is already happening. In the UK, the
Advertising Standards Authority has spent the last six months reviewing the
landscape and is about to commence stricter enforcement procedures. Brands are
set to be banned from declaring their products or services are carbon neutral
using offsets, unless they can prove they are actually
working.
This has coincided with a renewed focus on the true impact of
offsets.
In January, a Guardian
investigation
found that 90 percent of the rainforest project-derived offsets generated by
Verra, one of the world’s biggest offset certifiers, were “worthless.” Verra strongly disputed the
findings, but it got the world
talking
— not only about the value of offsetting, but the validity of making
carbon-neutral claims more generally.
Greenwash clampdowns are also underway in the UK investment scene. The fact that
so-called ‘sustainable’ pension
funds
are still entrenched in oil and gas firm funding has prompted the UK’s
Financial Conduct Authority to publish anti-greenwashing
rules
designed to clean up the labelling of investment funds.
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In the US, the Federal Trade Commission has updated its Green
Guides
for the first time in more than a decade, with a similar goal – to make it
harder for companies to fall into the trap of making overblown sustainability
claims about the products and materials they use.
Obviously, it will take time to completely stem the tide of greenwash; but incoming regulation and improved standards are having the desired impact, as
evidenced by recent action taken to halt greenwash from the likes of airlines including
Etihad and
Lufthansa.
Yet, in the race to win more savvy consumers and meet increasingly ambitious
sustainability goals, avoiding
greenwash
remains a challenge. Even companies forced to row back on their ambitions face
huge scrutiny. Just look at the backlash footwear business Crocs received
this week having announced
plans
to push back its net-zero target from 2030 to 2040 after recording a 45.5
percent increase in absolute emissions year-on-year after acquiring another
company. The new goal might be “more credible and realistic;” but consumers
expect more transparent and sophisticated communications from brands.
And that is proving to be a real struggle. New
research
suggests that while marketing professionals acknowledge the need to be braver
when it comes to sustainability communications to avoid greenwashing, more than
a third of them lack the capacity or
knowledge
to do so. At a time when more brands claim to have a sustainability-related
story worth sharing (41 percent versus 25 percent in 2021), the survey suggests
the situation is getting worse; capability gaps were cited by 35 percent of
respondents, versus 20 percent in 2021. This is especially a concern given that
more brands have sustainability as a KPI in their marketing functions – up from
26 percent in 2021 to 43 percent today: “It’s remarkable that even though 94
percent of marketers are willing to be brave to drive transformative change,
organizations still behave in the same way,” says Ozlem
Senturk, a senior partner
with Kantar, which was behind the research.
This research echoes the key findings of a recent Chartered Institute of
Marketing
survey,
which showed half of companies were reluctant to work on sustainability
campaigns for fear of getting tripped up and accused of greenwash.
As with many sustainability challenges, solving the greenwash problem can
benefit from a collaborative response. That’s certainly the view of the team
behind Creatives for Climate —
which has just launched a new platform designed to help communicators 'reskill'
for sustainability
communications.
The website features a training
program called Greenwash Watch —
which provides a useful analysis of anti-greenwashing regulation and rulings and
provides a framework from which to craft credible strategies that do not mislead
consumers.
As advertising regulators enforce tougher sanctions, consumer watchdogs get more
savvy and even governments double-down on their efforts, the era of
unsubstantiated green claims from corporates is over. But as the risks of
getting it wrong grow significantly, the pressure is on communicators to up
their game and be sure to back up their claims.
Published May 17, 2023 2pm EDT / 11am PDT / 7pm BST / 8pm CEST
Content creator extraordinaire.
Tom is founder of storytelling strategy firm Narrative Matters — which helps organizations develop content that truly engages audiences around issues of global social, environmental and economic importance. He also provides strategic editorial insight and support to help organisations – from large corporates, to NGOs – build content strategies that focus on editorial that is accessible, shareable, intelligent and conversation-driving.