Wildfires, extreme floods, earthquakes and hurricanes are just some of the events occurring due to climate change.
Global temperatures are rising, and a warming planet means serious and irreversible consequences. The current ‘climate crisis’ requires action and it’s now more important than ever that we all make everyday changes to help reduce our carbon footprint and impact on the planet.
However, it goes without saying that the main responsibility lies in the hands of businesses, big and small, to commit to carbon reduction targets in line with policy. Many companies and organisations have made great progress and as consumers, we are now more conscious than ever about purchasing more sustainable products and making more environmentally conscious choices. Businesses are aware of this, and so a lot of them are beginning their journey to sustainability, but this is where greenwashing can occur.
What is greenwashing and where did it come from?
Greenwashing is when an organisation spends more time and money on marketing itself as environmentally friendly than on actually minimising its environmental impact. It’s a deceitful marketing ploy used by companies to exaggerate their environmental actions. It intends to mislead consumers who prefer to buy goods and services from environmentally conscious brands, which we know is becoming more of a priority as the years go on.
The word was coined in 1986 by environmentalist Jay Westerveld, who saw this happening at a time when consumers were fed their news through TV, radio and print media, and couldn’t verify these facts the way we can today. Over the years, there have been countless headlines about companies that have engaged in greenwashing, including some large, well-known household names.
What does this mean for businesses?
First and foremost, the obvious. Greenwashing can really harm a brand’s reputation. As the world increasingly embraces greener practices, businesses now face scrutiny if they are not complying with environmental policies and standards, like they claim they are.
The attention given in the media to those companies found to be greenwashing, can be detrimental to the brand. However, businesses that are guilty of greenwashing are rarely plotting to deceive their customers, it’s more as a result of enthusiasm. And it has a cost. According to a survey, more than 50% of consumers “sometimes” or “never” believe companies’ environmental claims. Transparency and evidence of sustainability is increasingly important to customers and so it can also delay genuine environmental efforts as a consequence of deception.
What do businesses need to do?
To avoid greenwashing, it’s important companies are specific with their targets, using data to back up claims, avoid misleading images and most of all, be truthful. Greenwashing isn’t just deception to customers, it also has a negative impact on the environment, which is the whole reason companies are making these claims in the first place!
How can we spot greenwashing?
It’s not always black and white and it can be challenging to spot greenwashing, but there are clues to look for to help you become a more informed consumer:
- Check for third-party certifications
- Look for specific claims
- Research the company’s track records
- Scrutinise advertising and packaging
- Look for transparency
- Be cautious of overstated claims
- Be aware of price and quality