In our global quest for true environmental sustainability, transparency and accountability in our environmental claims are not just beneficial; they are essential. A revealing study by the Competition and Markets Authority (CMA) in early 2021 found that up to 40% of green claims made online might be misleading. This issue, known as greenwashing, significantly undermines efforts to combat climate change by obscuring the true impact of products and services. In this blog, I share my personal views and insights gained from battling greenwashing, including valuable lessons learned from establishing The Anti-Greenwash Charter, aimed at enhancing our collective sustainability efforts responsibly.
Greenwashing doesn’t just mislead consumers – it can also hinder investment in genuine sustainable initiatives and dilute the urgency of environmental advocacy by creating a false sense of progress. Discussing the broader implications of greenwashing helps frame why stringent measures are critical not only for compliance but for genuine environmental progress.
The introduction of regulations such as the CMA’s Green Claims Code, and more recently the Financial Conduct Authority’s (FCA) Anti-Greenwashing Rule (AGR), are important developments in ensuring that sustainability claims align with the actual environmental profile of products and services. These regulations demand clarity, fairness, and non-misleading communication about sustainability, supplementing other existing guidelines and affecting a wide range of communications, demanding accuracy and alignment with genuine sustainability features of products.
Establishing a Comprehensive Policy
While the top-down approach of regulation is fundamental, the establishment of a robust policy within your organisation represents a critical, proactive strategy in combating greenwashing. Serving as the cornerstone of your sustainability communications, this policy ensures that all environmental claims are clear, accurate, and substantiated by evidence. Implementing such a policy might involve key components such as:
- Defining Sustainability Terms
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- Clear definitions: Develop a glossary of key sustainability terms that your organisation uses, ensuring that all stakeholders have a unified understanding.
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2. Ensuring Accuracy and Credibility
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- Third-party verification: Require that all claims are supported by credible third-party evidence, enhancing trust and credibility in your environmental statements.
- Authentic visual representation: Use imagery and media that accurately reflect the true impact of your products or services on the environment.
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3. Governance and Compliance
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- Regular testing of marketing materials: Conduct routine checks on all communication assets to ensure compliance with sustainability claims and avoid potential greenwashing.
- Monitoring and reporting mechanisms: Implement mechanisms to track the environmental and social impacts of your offerings and assess compliance with established sustainability criteria.
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4. Education and Transparency
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- Employee education: Equip employees with the knowledge to understand and communicate sustainability issues accurately, especially those in direct contact with customers.
- Transparent reporting practices: Organisations should publicly disclose their environmental impact data and the progress of their sustainability initiatives. This helps build trust and credibility with consumers and stakeholders.
- Independent audits: Regular audits by third-party entities can ensure that sustainability claims are accurate and substantiate marketing communications.
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Combatting greenwashing is not a one-time task but a continuous effort that requires constant vigilance and improvement. By adopting a stringent internal policy, providing thorough training, and engaging in honest and clear communication, businesses can effectively mitigate the risk of greenwashing. This approach will not only ensure compliance with emerging regulations but also demonstrate a genuine commitment to sustainable practices. The journey towards true sustainability is complex and fraught with challenges like greenwashing, but through thoughtful strategies and robust policies, we can steer our efforts towards more authentic and impactful sustainability practices. What actions can you, as a member of your community or industry, take to combat greenwashing? How can we collectively foster an environment of greater accountability and transparency?
Zacc Tullett, Worshipful Company of Coachmakers
Co-Founder and COO, Anti-Greenwash Charter