Greenwashing: Green fibs
Some companies use false sustainability claims as a marketing ploy to attract customers and boost sales. Naturally, this strikes a note with most people as environmental agendas appear front and centre in our daily lives.
People also refer to green claims as environmental or eco-friendly statements. These pertain to products and services. Known as Greenwashing, this tactic involves anything from misleading claims about products to boasts about zero carbon emissions. However, authorities have picked up on this trend and are putting a foot down to stop it.
Greenwashing and environmental claims
A recent worldwide survey conducted by the Competition and Markets Authority (CMA) found that approximately 40% of all online sustainability and environmentally friendly statements are deceiving users. The CMA has now implemented a Green Claims Code that guides and monitors green assertions in marketing content.
This code supplements the existing Trading Standards Service and Advertising Standards Authority regulations. In the UK, the CMA told companies to ensure that their environmental claims are compliant as of the start of 2022.
A valid green claim describes the impacts of a product, brand or service and has tangible evidence to support it. False claims are often misleading, contain hidden or vague information, and are represented out of context.
The Green Claims Code
The Green Claims Code is a guide that shows businesses how to frame their green claims to avoid deceptions. It incorporates six important principles and emphasises that nothing important must be hidden or omitted. Companies must also consider the lifespans of products when making claims.
This code forms part of a broader awareness initiative. Your green claims must be:
- Truthful and accurate. Honesty is key – not only because it’s ethical, but also because customers are often drawn to honest brands.
- Unambiguous. Your sustainability claims must detail an entire product and service or specifically indicate the relevant parts without misleading people. This also applies to caveats or conditions.
- Transparent. This is essential, so avoid anything that can be interpreted as vague or deceiving. It must not contain portions of correct or incorrect aspects, and there must be no hidden conditions. Customers should find it easy to check and assess the accuracy of your claims.
- Fair and meaningful. Does your green statement add value to the environment and your customer experiences? Steer clear of exaggerations and over-promising. Apply this to any comparison with other products or services.
- Applicable to the entire life cycle of a product. This is especially important when making environmental claims. Clearly indicate durability and disposability specifics. Never hide important environmental information.
- Evidenced or substantiated. Can you back up your claims with tactile proof? Your evidence must not only be credible but also up to date. Remember, standard features or legal requirements are not part of a green claim.
Greenwashing case in point
A Changing Markets Foundation study found that 60% of environmental claims by British and European fashion houses are deceiving and not evidence-based. For this reason, the CMA turned its trained eye to the fashion industry.
Recent statistics show that UK shoppers fork out about £54bn every year for clothes and shoes. The bad news is that the fashion industry contributes between 2% and 8% to global carbon emissions and that the UK burns nearly 300,000 tonnes of used clothes annually.
It found false claims such as misleading information about using recycled fabrics. Additionally, entire lines boast sustainability and eco-friendly claims, including manufacturing, packaging and sales tactics, which are not true or questionable at the very least.
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