Greenwashing remains a growing concern, with some companies taking advantage of consumer demands for greater sustainability by making false or misleading claims about their products or services, either intentionally or through a lack of understanding.
What is Greenwashing?
Greenwashing is a marketing tactic that involves making false or misleading claims about the environmental benefits of a product or service. It can take many forms, from using vague or unsubstantiated claims, to highlighting one positive environmental aspect of a product while ignoring other harmful aspects.
Who Regulates Greenwashing? In the United Kingdom, the Competitions and Markets Authority (CMA) seek to regulate Greenwashing and there has been a significant crackdown on it since the introduction of the 2021 Green Claims Code. The key pieces of legislation that this guidance is based upon are the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and the Business Protection from Misleading Marketing Regulations 2008.
It has the power to ban advertisements that breach the Regulations, require companies to amend or withdraw misleading claims or even take civil or criminal enforcement action if necessary.
Greenwashing continues to be a significant issue for companies, consumers, and the environment. A study in 2021 found that 40% of green claims about a product or service can be deemed misleading. Even inadvertent Greenwashing can erode consumer trust in companies that are genuinely committed to sustainability.
How to Avoid Greenwashing
Green Claims are considered to be genuine when they properly describe the impact of a product, brand, business or service, with clear evidence and methodology to back it up.
Green Claims must be:
Truthful and accurate
Clear and unambiguous
Not omit important information
Make fair and meaningful comparisons
Consider the full life cycle of a product or service
Substantiated and be backed up with robust credible and up to date evidence
It is pertinent to avoid making any absolute claims and to be careful of making any comparisons with your competitors. Terms such as green, sustainable and eco-friendly must be also used with care.
The CMA may choose to investigate a Company's Green Claims; for example during 2023 they are examining the Green Claims made by businesses about essential items used by people on a daily basis, such as food and drink, cleaning products, toiletries, and personal care items. However it is important to remember that a member of the public or a even a competitor may also report a businesses' Green Claim to the CMA for investigation.
As sustainability becomes an increasingly important issue, it is critical that organisations take responsibility for the impact of their products and services on the environment and work to reduce their Carbon Footprint and environmental impact.
If you want to measure and reduce your Carbon Footprint and showcase your environmental achievements as part of your next Marketing campaign, contact Simply Carbon Reduction to discuss how we can help you to share your accomplishments while avoiding the risks of Greenwashing.