Topic for Aug. 31. ( Thur )

[Alex !]

Fabrication on ESG Marketing, Greenwashing

ESG marketing is the marketing of an organization's progress on its environmental, social and governance (ESG) goals, using specific types of reporting and status updates.

Greenwashing is the process of conveying a false impression or misleading information about how a company’s products are environmentally sound. It involves making an unsubstantiated claim to deceive consumers into believing that a company’s products are environmentally friendly or have a greater positive environmental impact than they actually do.

In addition, greenwashing may occur when a company attempts to emphasize sustainable aspects of a product to overshadow the company’s involvement in environmentally damaging practices. Performed through the use of environmental imagery, misleading labels, and hiding tradeoffs.

It means using false information to intentionally hide wrongdoing, error, or an unpleasant situation in an attempt to make it seem less bad than it is.

It’s a way for companies to appear like they care while also increasing their profit margins, as they’re fully aware that eco-conscious people are willing to part with more money for sustainable products.

Awareness of the tricks they use can help you spot other talented greenwashers more easily, so let’s take a look at some greenwashing lowlights from the last couple of years.

You might remember the controversy back in 2019 when McDonald’s introduced paper straws that turned out to be non-recyclable. Aside from the questionable practice of cutting down trees to make disposable straws, this was a classic example of a corporate giant pretending to address an issue — in this case, plastic pollution — without actually doing anything.

IKEA has been making beechwood chairs using illegally sourced wood from the forests of Ukraine’s Carpathian region, an area home to endangered beasts such as bears, lynxes, wolves, and bison.

The illegal timber was certified by the Forest Stewardship Council. This oversight raises serious questions about the ethics and transparency of the FSC accreditation, which according to Earthsight, is not limited to Ukraine. 

Coca-Cola was ranked as the world’s number 1 plastic polluter. Starbucks released a “straw-less lid,” as part of its sustainability drive, however this lid contained more plastic than the old lid and straw combination. 

Critics were quick to point out that only 9% of the world’s plastic is recycled, so the company shouldn’t assume all the lids would be recycled. Further, the US exports about one-third of its recycling to developing countries, so it is simply passing its responsibility to poorer countries.

H&M, Zara and Uniqlo are among the companies that were caught greenwashing over the years. These fashion brands contribute to the massive amounts of textile waste caused by the clothing industry. Fast fashion brands also have a habit of advertising its green initiatives widely, despite it being a tiny part of its operations. 

H&M launched its own line of “green” clothing titled “Conscious.” The company claims to use “organic” cotton and recycled polyester. However, the line is nothing but a marketing tactic used to make themselves appear more environmentally friendly. 

Beyond Meat made a spectacular debut on the NASDAQ in May 2019. Bill Gates and Leonardo DiCaprio invested and emerged as ‘ESG representative runners’.
At one point, the stock soared to $235, 10 times the public offering price. However, it has now plunged to around 12 dollars, about 5% from its peak.

Plant-based substitute meat is known to emit 40-90% less greenhouse gas emissions than real meat, but at the same time, it is an 'ultra-processed food' containing all kinds of food additives. impossible.

Allbirds, an American shoe company that was once praised as the “Apple of the shoe world,” is also going downhill. Allbirds has emphasized that shoes are made with eco-friendly materials. Former President Barack Obama, Google co-founder Larry Page were known to be a fan of this shoes and successfully entered Nasdaq in November 2021. 

However, consumer complaints piled up that shoes wear out quickly. They faced criticism for covering up the quality deterioration problem with an ambiguous eco-friendly image.
The stock price of Allbirds, which reached a high of $26, has repeatedly plummeted and is currently staying in the $1 range.

Canada Goose, a high-end padding brand in Canada had the description attached on tag that ‘100% Canadian coyote fur’ and  ‘Our commitment to ethical, responsible and sustainable natural fur sourcing, all our natural fur is sourced only from certified catchers.’ 

However, allegations have been raised that Canada Goose made a deal with hunters who obtained their fur by strangling coyotes with traps and traps and breaking bones. In the following years, courts upheld some of these claims. Canada Goose eventually stopped using animal fur in 2022.

Delta Air Lines of the United States was sued by consumers for advertising using the expression‎ "the world's first carbon-neutral airline" in May.
The plaintiffs argued that “Delta violated consumer rights and interests by raising air ticket prices under the image of reducing carbon emissions.”