Tuesday, November 13, 2012

Greenwashing is ruining the credibility of Green Marketing and Green Products

     The title says it all… As science studies prevail and the constant fear of global warming strikes panic upon the entire world, it is no wonder that corporations compete for market share by promoting themselves as eco-friendly or ‘green.’ These promotions can vary from developing packages with green logos to investing in emerging environmentally friendly technologies. In fact, it is almost impossible to walk into a store and not see advertising for the latest “eco-friendly” toilet paper, or energy efficient washers and dryers. With such flooding of the market comes skepticism. Are all of these products really “green?” Do all these companies actually care about the environment? Or are these companies just trying to fit into the fad of green products as a way to increase revenues and market share? All of these issues point to a new trend called Greenwashing and how it is ruining the credibility and trust in Green Marketing and Green Products. 
     In fact, in the 2012 Cone Green Gap Trend Tracker, “Eight in 10 Americans don’t believe companies are addressing all of their environmental impacts, and only 44% trust companies’ green claims, possibly affecting sales. As many as 77% would be willing to boycott if misled.” Labels play a major role in helping consumers decide between products claiming to be green. Nearly 40% said they rely on labels, according to a report from the eco-marketing company Shelton Group. Suzanne Shelton, CEO of Shelton Group, states, “Many consumers don't trust manufacturer motives, but they end up making a decision at the shelf based on the packaging, usually just buying the brands they've always bought.” If we allow companies to get away with exaggeration, consumer skepticism will become cynicism and they'll stop choosing green products at all. So where does this put us in terms of green marketing? Do we trust the products? Should we trust the products? Professor Diane Whitney, University of Maryland Marketing Professor weighs in on current FTC regulations and differences in confidence between demographics.. 
What exactly is this term Greenwashing?

Greenwashing is an attempt to make normal products seem Green


     Greenwashing can be looked at as "Whitewashing with a Green paintbrush. Oxford Dictionary defines Whitewashing as “a deliberate attempt to conceal unpleasant or incriminating facts about a person or organization in order to protect their reputation.” Now, putting this into perspective of green products and the green movement, it can be seen that Greenwashing is simply the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service. Due to the increased pressure on businesses to keep up with the Green movements of today, many companies are stretching the truth with regards to their so-called ‘Green’ products. In a study conducted by Terrachoice, an environmental marketing and consulting firm, from 2009 to 2010 there was a 73 percent increase in “green” products on the market. Overall, researchers found, 95% of these products committed at least one “greenwashing” sin. As well, “100 hundred per cent of toys and 99.2 per cent of baby products surveyed are guilty of some form of greenwashing.” Basically, whenever a parent went shopping for a holiday gift for their son or daughter, every toy that they picked up that made a claim about being “bio degradable,” was simply false. The issue with Greenwashing is that there are many ways that consumers may be tricked. In fact, Terrachoice developed the “7 sins of Greenwashing.” Many of these companies or products commit more than one, but as seen previously, 95% of Green marketed products commit at least 1.

The 7 Sins of Greenwashing

  1. The Sin of Hidden Trade Off: A claim that suggests that a product is deemed ‘green’ based on a limited set of attributes without paying attention to other vital environmental issues. For example, paper is not necessarily environmentally preferable because it comes from a sustainably harvested forest. Issues behind the paper making process include, greenhouse gas emissions, or chlorine use in bleaching. 
  2. The Sin of No Proof: A claim that can not be verified by a reliable third party certification and lacks easily accessible supporting information. Facial tissues or Toilet paper products often claim percentages of post consumer recycled content without providing any proof or data. 
  3. The Sin of Vagueness: A claim that is so broad or poorly defined that it’s real meaning it often misunderstood by consumers. For example, that ‘All- Natural’ chicken that is nicely wrapped in a green package is misleading. The green package would indicate that it is a green product, but the term ‘All-Natural’ indicates that the product lacks naturally occurring poisonous chemicals such as arsenic and mercury. While lacking such poisonous chemicals is good for consumers, it is not necessarily ‘green.’ 
  4. The Sin of Worshiping Labels: This is when marketers create a false suggestion or a certification-like image to mislead consumers into thinking that a product has been through a legitimate green certification process. One example of this sin is a brand of aluminum foil with certification-like images that show the name of the company’s own in-house environmental program for which there is no explanation. 
  5. The Sin of Irrelevance: This sin arises when an environmental issue unrelated to the product is emphasized. One example is the claim that a product is “CFC-free,” since CFCs are banned by law. 
  6. The Sin of Lesser of Two Evils: A claim that may be true within a certain product category but distracts consumers from the larger perspective of the environmental impact of these products. Are organic cigarettes “green?” What about “eco-friendly” pesticides and herbicides? Labeling such products “green” ultimately distracts from the fundamental problems with these products. 
  7. The Sin of Fibbing: Simply put, these are environmental claims that are just plain false. Washers, Dryers, and other kitchen appliances often claim to be Energy Star certified or registered. However, while walking down and aisle in the local appliance store, consumers would never be able to tell if these products are actually any better than the non “Energy Star” certified appliances.

Greenwashers often focus on only one of the four main sustainability pillars, social, economic, cultural and environmental, while obscuring the rest


     Greenwashing can be seen in all major industries. Whether it be oil, auto, electronics, coal, nuclear, and forests, major corporations make strong efforts to cover up the impacts of their business. A simple example is Campbell's Soup, which launched an Earth Day green-colored soup can, but didn't bother buying organic chicken or lowering the salt content. At the most basic level, these companies have ignored that sustainability is complex and has four pillars– social, economic, cultural and environmental. Greenwashers often try to focus on just one of these four pillars, while obscuring the rest. However, on the larger scale industries, some examples include:


It is up to the consumers to take a stand against Greenwashing


     The matter of the fact is, with all the ways of Greenwashing, regulation is extremely difficult. It doesn't help that the Federal Trade Commission has not enforced any anti greenwashing regulations on guilty parties since 2000. However, the Commission recently began revising guidelines for green marketing, which provides some hope that the system might be more effective in the future. In order to take a stand against greenwashing, it is left on the shoulders of the consumers. Greenwashingindex.com, a leader in the fight against greenwashing, says consumers must ask 
themselves about "The Truth, the Whole Truth, and Nothing But the Truth."

  • The Truth: If you see a green ad, take a look at the company as a whole. Can you easily find more information about their sustainable business practices on their website? Do they have a comprehensive environmental story? Is there believable information to substantiate the green claims you saw in the ad? If not, buyer beware.
  • The Whole Truth: Next, try this. Google the company name plus the word “environment” and see what pops up. This is far from scientific, but if consumers or environmental advocates have a beef with the company’s track record, something’s bound to pop up.
  • Nothing But the Truth: “I know it when I see it.” Those are the words of Supreme Court Justice Warren Potter in a ruling on hard-core pornography in 1964. As weird as it may seem, those are words to live by for the consumer and green marketing claims. If you spot a green ad, how does it strike your gut? Does it ring true and authentic, or is it obviously hype? Smart shoppers abound globally, and your own scrutiny of green marketing claims is one more item to throw into your shopping cart.
     In conclusion, Greenwashing is a serious issue that affects consumer confidence in the truth behind the "Green Scheme." It is important to do your research before purchasing any goods that are proclaimed as 'green' and if you find an ad or product that is clearly false green advertising, you should report it.


Audioboos:


     Tyler Gordon weighs in on the impact on Green Marketing and how Greenwashing impacts his confidence and trust in companies.