‘Everyone talks about greenwashing. Is that something we need to consider to get our products moving?’ About 20 years ago our CEO Barbara Nebel couldn’t help overhearing two businessmen discussing their marketing strategy while waiting in a conference’s coffee line.
Two decades later, many businesses are working hard to avoid greenwashing – making people believe their company is doing more to protect the environment than it really is.
Telling your sustainability story
There’s much to gain from communicating your achievements to become more sustainable. Talking about your sustainability plans and progress helps you build relationships with customers, suppliers and your team, and inspires joint action. It also helps you stand out from your competitors and attract a growing number of customers and investors who demand more sustainable products and services. But it’s important to get this right to avoid being accused of greenwashing.
Cracking down on greenwashing
A UN report, published at the COP 27 slammed greenwashing and weak net-zero pledges. Australia’s national consumer watchdog earlier also announced it would pounce on businesses promoting environmental claims with nothing to back them up. The Australian Competition and Consumer Commission (ACCC) said it would start sweeping the internet for misleading environmental claims. The organisation is planning to lay down guidelines so that companies only make statements about their products that are ‘clear, defined, limited in their claims, and always have strong verification materials’.
New Zealand’s Commerce Commission published its Environmental Claims Guidelines in 2020 to help businesses understand their Fair Trading Act obligations when making environmental claims.
Up to 40% of claims are false
A global ‘sweep’ of more than 500 websites by the International Consumer Protection and Enforcement Network (ICPEN) found more than 40% appeared to be using greenwashing tactics. But scrutiny from consumer organisations and climate activists is growing. Internationally the number of climate change-related litigation cases has more than doubled since 2015, a report by the Grantham Research Institute on Climate Change and the Environment shows. On the receiving end are several retail giants who were forced to remove or amend misleading sustainability claims.
The costs to business
Promising something without the data to back it up can lead to reputational damage – often amplified by the power of social media – and big penalties. Companies face fines of up to $1 million in Australia and up to $600,000 in Aotearoa New Zealand.
How to avoid greenwashing
1. Be clear, specific and accurate
Before making claims, make sure they are truthful, accurate and specific and that you have the data to back them up. While it is appealing to use buzzwords like ‘natural’, ‘eco-friendly’, ‘green’ or ‘sustainable’ in your marketing, there are considerable business risks involved. These terms are too vague to be meaningful – after all, petroleum and arsenic, for example, are both derived from nature. Use language that is clear and precise. Our plain English sustainability glossary will help you to demystify the jargon and confusing terms.
If you claim your product is made from recycled materials, be specific and say how much of the materials were recycled. And if you claim your product is recyclable, you need to make sure recycling options exist in the country where you sell the product.
2. Measure, measure, measure
To make claims, you need to know your numbers. For example, a carbon footprint, the sum of the greenhouse gas (GHG) emissions associated with your organisation, can provide you with a benchmark so you can track your progress but also compare your efforts against competitors. Calculating its carbon footprint enabled supermarket company Countdown to take meaningful climate action, and set and communicate reduction targets that are based on science. When Countdown talks about its commitment to reduce emissions it is based on robust numbers.
3. Get data before you compare
A Life Cycle Assessment (LCA) calculates a snapshot of your product’s environmental impacts. An LCA study helps you to focus on where you can have the greatest impact without creating a problem in another area. For example, Aquaculture New Zealand used an LCA study to back up their claims about the sustainability performance of Greenshell Mussels and Pacific Oysters farmed in New Zealand compared with other sources of dietary protein.
An Environmental Product Declaration (EPD) is based on an LCA and tells the environmental story of a product over its life cycle in a clear, simple format that can be understood by a wide audience. It is science-based, independently verified and publicly available. EPDs are often compared to the nutrition labels on food products.
4. Get a third-party certification
There are now many science-based, independent certifications that help different industries to prove their sustainability credentials. Third-party labels are useful to assure consumers that environmental claims are true. With the rise of sustainability claims, there are also more eco-labels and certifications.
For Australia, a list of national and international eco-labels relevant industries can be found here. For New Zealand, the Sustainable Business Network has assembled a list of certifications most relevant to businesses in New Zealand.
5. Look at your supply chain
Before you hail your product or organisation as climate-conscious or ethical, make sure this is also true for your supply chain. You don’t want to taint your reputation with suppliers linked to extensive pollution or modern slavery.
6. Communicate for impact
With solid, transparent data at hand and using plain English, you can make clear and easy-to-understand claims. Your communication will also be specific, instead of using meaningless buzzwords that give the impression a product is more sustainable than it really is. You’ll be on the right path to share your good work with your customers, suppliers and your team without the risk of falling into the greenwashing trap.
More information about the legal background:
New Zealand: Environmental Claims guidelines
Australia: Advertising and selling guide for environmental and organic claims
Our plain English communications offer for clients
Our in-house communication and design experts can help you develop plain English case studies, web copy, reports and other communications to share your sustainability stories. We work with our sustainability colleagues every day, so we know how to translate complex technical information into business language without ‘greenwash’.