Topic for May. 17. ( Tue )

[Alex !]

Greenwashing but non-Eco

- Greenwashing: Only the Appearance of Sustainability

Rising demand for eco-friendly products and environmentally ethical business practices signals a fantastic shift toward conscious consumerism; but it has also led to increased greenwashing.

Based on the term “whitewashing”, the definition of greenwashing is “to make people believe that your company is doing more to protect the environment than it really is”.

Essentially, it refers to dishonest or deceitful marketing about a company or product’s environmental impact.

Companies or individuals who “greenwash” often spend more money on making consumers think their practices are sustainable than actually making them so.

Environmental awareness is on the rise. In the United States, for instance, one study found that the number of consumers opting for environmentally friendly products is climbing 30 percent per year -- a trend triggering a tidal wave of new green labels. At a global level, the percentage of consumers turning to eco-friendly products grew by 10 percentage points from 2011 to 2014. Within corporations, the number of enterprises establishing environmentally responsible policies speaks to increasing awareness as well. 

This surge of interest also has brought with it questionable behaviors, such as companies portraying themselves or their products as eco-friendly when in fact they are not. The title of the study comes from a play on "whitewashing" in the symbolic color of the environmental movement.

Why?

Statistically, green sells.

According to a 2015 Nielson poll, 66% of people are willing to pay more for eco-friendly products and 50% of purchasing decisions are influenced by sustainability features.

Companies may greenwash their offerings because of growing pressure from society, interest groups and myriad environmental regulations. If governments and other regulatory bodies fail to revise their incentives, the risk of being misled by false claims will continue to run high.  

Advertising, labeling and public relations are the three most common conduits for companies to let people know what they are doing for the environment and to try to gain a competitive edge while influencing consumers' shopping decisions. 

In fact, advertising is where one of the most common forms of greenwashing appears: selective misinformation. This practice highlights "green" features of a product while hiding other aspects that may be negative. Consumers may thus be misled, using a product they think helps protect the environment while unaware of the damaging aspects of it.

As for labeling, surging demand for "green" certifications has saturated the market with hundreds of labels that end up confusing consumers and making them wary. Underhanded practices include the use of images and colors related to nature, labels and symbols that look official yet are not, and self-declaratory labels made up by the company. 

The European Commission has issued directives to limit "unfair commercial practices" as well as "misleading and comparative advertising" in order to curb such practices as the overstatement of environmental achievements or failure to comply with codes of conduct.

Environmental communications and advertising should be sincere, humble and moderate, according to the report. And it may be useful to highlight ecological side benefits -- such as health benefits and cost savings -- that come along with greener living. 

On labels, the use of a green symbol should always include an explanation of how the product contributes to protecting the environment and what exactly a certification refers to.

In addition, those with authority over certifications should not only grant labels for compliance but also impose fines when they are not observed. There should also be warnings attached to the products that are most harmful for the environment. 

Companies and their executives should commit to environmental causes. Corporate policies to this end should be specific, sincere and viable. They should also be subject to external audits to avoid disconnect between what a company says and what it does. 

Acting with the environment in mind should generate short- and long-term benefits by cutting costs, increasing market share, boosting competitiveness and/or improving ties with interest groups and the company's public image.