Navigating Greenwashing

• Should intent be a factor when accusing companies of greenwashing?

• How can any company wade through the 400+ UK environmental accreditations?

• Could a clampdown on environmental claims lead us to stop using the colour green or pictures of forests in our marketing entirely?

These are some of the questions discussed in our first recorded conversation for 2024: Navigating Greenwashing: Policies, Pitfalls, and Prevention with Public Affairs Expert, Andrea Gutierrez-Solana, of Whitehouse Communications.

🌟 Our main takeaway 🌟

You have to be brave to go public about your environmental efforts. Where does the line get drawn between discouraging fake claims and encouraging climate action? The answer seems to be nowhere right now. The landscape is disjointed with hundreds of certifications and many unsubstantiated claims. There is a crying need for a single source of truth, similar to what Cyber Essentials did for cyber security. While no silver bullet exists, one course of action for businesses is to engage in policy-making and with regulators.

🤝Where there is agreement

While everyone agrees with the principle that companies can’t just say whatever they want to look better when it comes to environmental claims, the rise of Greenhushing - where companies choose not to make public their climate actions for fear of greenwashing accusations- can’t be ignored.

Where does the line get drawn between discouraging fake claims and encouraging climate action? The answer seems to be nowhere right now.

While no silver bullet exists, one course of action for businesses is to engage policy-making and regulators - aka lobbying - which for most businesses sits outside of our area of expertise.

One thing is clear, businesses need clear and stable rules of engagement. Right now they face a sustainability whiplash.

On one hand, they face new financial penalties in the UK and the EU for making unsubstantiated environmental claims. On the other hand, farmers protesting in major cities in Europe, leaders are backtracking on sustainability policies, and it’s a huge year for elections which is likely to lead to less ambition, not more, from governments around the world.

Meanwhile, our oceans are shattering all records for temperature - just one of the tipping points that will make running any business even more uncertain.

Key Takeaways

There's no legal definition for greenwashing which is an informal term describing a company’s attempt to make believe that it is doing more to protect the environment than it is.

When the UK’s Competition and Market Authority did some research, they found that 91% of dishwashing products were marketed in some way as environmentally friendly, which while a wonderful target, is far from the case.

💡The Rise of Greenwashing: We see increased efforts to support the green transition but that also means companies increasingly making misleading environmental claims and misleading buyers about the sustainability of their products and services.

💡Buyer Impact: The awareness and demand for sustainable products are growing, but greenwashing undermines trust and creates an unfair market for genuine efforts by businesses.

💡Legislative Responses: As you might come to expect, the UK and the EU have very different approaches to tackling Greenwashing. The continent is showing real ambition and has a very prescriptive approach while the UK, thanks to its common law practices, uses guides and codes. Ultimately the UK is focusing on the enforcement of existing regulations on Consumer Protection from Unfair Trading (soon to be absorbed by the Digital Markets, Competition and Consumer Act 2023 and Business Protection from Misleading Marketing). The EU is addressing greenwashing through upcoming legislation, including the Green Deal.

💡Certifications & Third-Party verifications: With over 400+ certifications, it’s hard to see how companies, especially SMBs can navigate the new regulations that will require environmental claims which is likely to increase the Green premium.

💡Greenhushing: A new phenomenon where companies avoid discussing their environmental efforts to prevent accusations of greenwashing, potentially hindering transparency in sustainability initiatives.

💡Consumer Demand for Transparency: Consumers value companies with genuine environmental commitments, but greenwashing practices have led to increased skepticism and demand for verification.

With elections looming in the EU and the UK, this is no doubt a year of change. It is widely expected that there will be a considerable shift to the right which poses real challenges for the adoption of future sustainability policies and regulations at a rate necessary to help businesses prevent and adapt to the worst impacts of climate change.

In Conversation today 💭

Are there plans for an ISO standard for addressing greenwashing?

Who manages the accreditations and certifications?

Are you liable for greenwashing if you repeat claims you make from suppliers?

Are there plans for a cyber essentials equivalent for greenwashing?

Will companies be penalised for using imagery of forests or the colour green in their communication?

Should we have a blackwashing category to separate those that are genuinely trying and those who are not?

Missed the webinar? Watch it here: