Green-washing is the practice of misrepresenting the sustainable, environmental and ecological benefits of a product or service.
It doesn’t matter whether there is intention to mislead or an error occurs accidentally; any marketing of products and services in the green space requires all the evidence to be presented and verified in plain English.
Consider the example of a small office printer that carries a logo depicting planet earth and the words “Earth friendly - 100% Carbon Neutral”. In this circumstance, the manufacturer may have committed green-washing. Saying that the printer is “earth friendly” is vague at best, and the “100% Carbon Neutral” claim is equally confusing. What part of the machine is carbon neutral? The manufacture? The transport to the retailer? The electricity it will use throughout its lifecycle? The ink cartridges?
All these claims are difficult to substantiate and even though the intentions may be honourable, the outcome is that consumers aren’t able to make a choice based on accurate information.
The past few years have seen an explosion in green claims by businesses small and large. In 2009, North American environmental marketing consultancy TerraChoice found that the number of green products available in retail stores had increased by an average of 79% over the previous couple of years. This, along with greater numbers of products bearing eco-labelling, suggests that consumers are increasingly considering environmental issues in their purchasing decisions.
The survey’s most disturbing revelation was that of 2219 products surveyed, 98% were guilty of some form of green-washing, ranging from detailing irrelevant information to inappropriate eco-labelling.
Many of these companies may not be aware that they’re committing the sin of green-washing, but ignorance is no excuse in the eyes of regulatory authorities like the Australian Competition and Consumer Commission (ACCC).
The ACCC is very active in monitoring green claims and it’s not just big business that’s under the spotlight; they investigate small businesses too. To date, fines and penalties have included refunds to customers, enforced changes to product advertising, and even enforced tree planting (as was the case with the SAAB Grrrrrreen campaign). However, the ACCC also has the power to enforce stiff financial penalties, with fines of up to $1.2 million.
The ACCC is not alone in its crusade against misleading green claims. Consumer magazine CHOICE has it’s own way of dealing with green-washing, and their web portal CHOICE Green Watch is a site you probably don’t want to feature on. However, it does provide consumers with good resources, and keeps businesses that are making green claims focused on providing all the facts in plain English.
So what are the implications for a micro-business? If you have a green product or service, or if you’re being actively sustainable as a business, shouldn’t you be able to market your achievements without fear of breaking the law? The answer is yes, and by sticking to these basic principles you can promote your green credentials effectively and responsibly:
1. Refer to the ACCC’s helpful guide called Green Marketing | Trade Practice Act. It’s easy to understand and contains some great case studies.
2. If you’re making a claim about your eco efforts, be sure you can prove it. Say it in plain English, and don’t make claims that are irrelevant or exaggerated.
3. Seek certification or environmental endorsement. In the process, you may find that more work needs to be done before you’re entitled to make eco claims for your product or service. Jumping those additional hurdles will give you extra peace of mind and can improve your standing with customers.
4. Seek independent advice about the accuracy, completeness, reliability and suitability of the green credentials you propose using to promote your product from an environmental marketing specialist.
In the final article in this three-part series, we’ll look at how green has gone mainstream, and outline the issues people consider when purchasing sustainable goods and services.
Have you encountered any good examples of green-washing? Share them below.
“ Ignorance is no excuse in the eyes of regulatory authorities like the ACCC. ”
Chris Eccleston Chris Eccleston is the Principal Consultant at Green Solutions Marketing, an Australian owned end-to-end green marketing and communications company experienced in bringing green brands to life, or rejuvenating existing sustainable products and services.