Image a planet where the making and labelling of products all communicated, they were ‘Nature Positive’ rather than just ‘sustainable’ or ‘eco-friendly’ and they each had QR Code linked to a scorecard that presented scientifically evidence that showed how the product achieved its ‘nature positive’ status, all verified by an independent third party. Many of us dream of living in a world where all have healthy, equitable lives in a natural world that is flourishing, and while it is still a long way off, it is still possible if we all make deliberate decisions to ‘buy right’ and ‘do right.’
As anyone who has tried to set out on this ‘better living’ pathway will likely have found, it is not always easy. To get there, we need to be able to easily access products with accurate claims based on proper scientific methods and meaningful metrics to cut through the deliberate ‘tangle of weeds’ that is the marketing hype and disinformation laid out variously by politicians, media, manufacturers, and other self-interested companies. We need to seek out the clarity and correctness within information being proffered. One of those major ‘tangle of weeds’ or barriers to a healthier, more ethical, and flourishing future or ‘cleaner earth’ is a concept known as ‘Greenwashing’.
With more than 60 percent of consumers inclined towards buying cleaner, greener products saying they would be open to paying more for a sustainable product, trust in what is being said on labels and in marketing becomes their number one concern.
Lately however, we have seen an avalanche of official concerns expressed by global and local regulatory authorities about environmental and social governance (ESG) claims made by large organisations – like Deutsche Bank’s asset management arm, DWS Group. Police stormed their Frankfurt headquarters, uncovering the extent of greenwashing in relation to a whistle-blower’s allegations of false and misleading ESG claims, relating to $US450 billion of the assets DWS manages.
In the USA, the Securities and Exchange Commission is currently proposing that companies disclose ESG metrics like the greenhouse emissions of their portfolios and their annual progress towards ESG objectives, all to minimise greenwash.
Locally, the Australian Securities and Investments Commission (ASIC) started investigations into greenwashing by superannuation and managed funds and the Australian Competition and Consumer Commission (ACCC) warned that funds and companies falsely promoting their green credentials would face an enforcement crackdown.
Even the Morrison led, Federal Government’s controversial $4.5 billion Emissions Reduction Fund (ERF) came under renewed calls for a root-and-branch review – following revelations by the former chair of the Australian Government’s Emissions Reduction Assurance Committee that up to 80% of Australian carbon credits lack integrity, the CEO of Qantas Alan Joyce endorsing a review, and the ACCC and ASIC publically flagging the need for tighter regulation on carbon credits greenwashing.
Historically, there are many examples also of the ACCC taking action against large manufacturers for greenwashing, but seldom against smaller companies. Therefore, it is up to purchasers and specifiers to be able to discern and avoid greenwashed products when they come across them.
What is Greenwashing?
Greenwashing is a claim made about a product or service that it actually doesn’t have. Greenwashing techniques used can be as simple as a plain lie, they can also be more subtle and involve things unsaid, covered under Australian Consumer Law (ACL). The ACCC states in their ‘Green marketing and the Australian Consumer Law’ publication that ACL applies to all forms of marketing by businesses and across all mediums, dealing with ‘False, Misleading and Deceptive Conduct.’ Deceptive claims only need to be likely to mislead or deceive; it doesn’t matter whether the claim actually misled anyone, or whether the business intended to mislead. Serious examples include fines of up to $1.1 million. The ACCC states explicitly, ‘Goods must comply with any description that is provided, and this is especially relevant to claims regarding recycled and recyclable content or the environmental impact of components used in the product.’
The Top 5 most common occurring greenwash techniques are:
1. Emotive and Natural Imagery
Using emotive images of leaves, nature, or animals unrelated to the product or even green colours on packaging, are all ways of classic greenwashing. In truth, genuinely eco-friendly products generally use simpler images and plain packaging, but even this technique can be mimicked as greenwash.
2. Vague Claims
Claims such as ‘Green,’ ‘Eco-friendly,’ ‘Healthy’ are explicitly targeted by the ACCC in their ‘Green marketing and the Australian Consumer Law’ publication quoted above. The international standard on Company Self Declarations ISO 14021 specifically precludes use of the terms ‘sustainable’, claims relating to ‘sustainability’, unqualified claims of ‘carbon neutral’ or ‘carbon neutrality’, and prescribes general claims like ‘environmentally safe’, ‘environmentally friendly’, ‘earth friendly’, ‘non-polluting’, ‘green’, ‘nature’s friend’, ‘ozone friendly’ (and the like), shall not be used.
3. Misleading Claims
Where products are labelled ‘Natural,’ ‘Organic,’ etc. without any supportive information. There is a good chance that these labels are self-created, solely by marketing teams. They can include creating fake ‘ecolabels’ e.g., showing a picture of a cute koala in a circle. This type of misleading logo invention is something we have all experienced and it happens constantly.
Even company names that imply green or healthy credentials of its products and do not deliver, maybe considered misleading.
There is ample evidence in Global GreenTag’s experience where unconscionable or unknowing manufacturers illegally co-opt real Certification Marks and Certificates for products they are not entitled to use them on. GreenTag issues multiple, successful, ‘Cease and Desist’ lawyer warning letters each year calling for immediate removal of its Marks.
There are even bogus certification bodies in Asia that con local manufacturers into paying for bogus certification. One example locally was of a composite flooring manufacturer that paid good money for an ‘EPD’ and received a single sheet certificate saying the product was ‘Certified to have an EPD,’ but there was no reporting or assessment behind it. The manufacturer would not believe they had been conned even when confirmed by GreenTag and refused to remove the ‘certificate’ from its website. GreenTag terminated the certification process and ceased dealing with the client thereafter. That process eventually resulted in the ex-client acquiring a real EPD elsewhere.
4. Hidden trade-offs
Such as clothing or fabric that says ‘natural’ or ‘recycled’ materials while it is actually manufactured using labour employed under conditions considered modern slavery.
5. Irrelevant Claims
Labels that say products are free of certain chemicals, yet the substances might actually be banned by the law and irrelevant to advertise as going green. Or labels that say, ‘not tested on animals’ therefore, irrelevant because animal testing is illegal.
Remedies to Greenwash
Third party evidence
Manufacturer claims must be supported by easily accessible, and understandable, genuine, third party evidence of scientific testing, assessment against specific recognised standards and verification by a qualified third party or certification system. A product that is certified and backed up with all the necessary details is a safer way to purchase.
‘Radical Transparency’ pushes towards a cleaner earth
The concept of radical transparency is gaining ground massively on an international scale. Full clarity and disclosure of product information is the ultimate way of preventing some forms of greenwashing. It applies particularly to ingredients and toxicity hazards, supply chains, ethical labour, and circular resource product outcomes.
Scientific data trends in building trust
The requests for more products to be scientifically and independently certified are also on a dramatic upward trajectory, driven by the need for specific evidentiary requirements and carbon metrics from the market generally, ESG focussed companies and property funds and especially from green building and infrastructure rating tools.
Look for a purpose driven product certification brand you can TRUST
For built environment industries, it is critical to source product information through independent, Government approved, third party product certification programs that also engage transparent product declaration processes, i.e., programs provided by Global GreenTag that also have formal recognition by the majority of global green and healthy project rating schemes like Green Star, WELL, LEED and the Infrastructure Sustainability rating tool.
GreenTag assesses products for all aspects of impacts on human health, ethical labour supply and the environment, legally approved as a Certification Mark operator by the ACCC in Australia and by equivalent government agencies in NZ, USA, Canada, and South Africa. The website and all marketing collateral for every product certified by Global GreenTag is verified as ‘fit for purpose’ and compliant to ISO 14021, i.e.., truth in advertising. What’s more, GreenTag’s governance and its own external verification and certification against standards such as ISO 14024 (Ecolabelling), ISO 17065 (Conformance Assessment) and ISO 9001 (Quality Management) among others, is unparalleled.
Visit: www.globalgreentag.com
Article by Mary-Lou Kelly and David Baggs
