The battle against greenwashing
The battle against greenwashing
“Greenwashing,” also known as, “Green Sheen” are terms used to define the practise of falsely giving the impression that an organisation and/or it’s products and activities are more environmentally friendly than they actually are. In essence, the use of the word greenwashing seeks to expose malpractice or highlight deception.
The practise of greenwashing has become more frequent in recent years as companies recognise the increasing importance of being able to demonstrate sound environmental credentials. The power of the consumer is such that firms are having to change their behaviour to ensure they are providing what customers demand.
The leading companies make a virtue of satisfying these demands and have reconfigured their operations, supply chains, raw materials, packaging, marketing, distribution and management and employee incentivisation. The Followers are admirably seeking to do the same but might be finding it a little more challenging due to lack of resources, knowledge or other issues. Inevitably, there are the Others who have no interest in adapting, developing and bettering themselves. Alternatively, they are willing to cut corners or disappointingly masquerade as environmentally conscious but in reality have done little, if anything, to improve their practices and thus benefit our communities.
The temptation to greenwash can be too tantalising for some organisations to ignore. This is particularly the case when one analyses the results of surveys that indicate consumers are willing to pay more for products and services if they are considered to have a positive environmental and social impact.
Organisations of all shapes and sizes have been accused of it. Perhaps the most notable in recent years has been the emissions-cheating scandal conducted by some of the large motor manufacturers (Volkswagen, BMW, Ford etc.) all of whom stand accused of doctoring their own, “clean” diesel engine tests. Volkswagen itself has admitted to cheating the tests on 11 million of its own cars. Ultimately, Volkswagen refunded its customers to the tune of $11bn.
Further illustrations involve the use of misleading statistics e.g. “This product contains 50% more recycled contents than before.” If the content has increased from 1.0% to 1.5% that is unlikely to have been as meaningful as the consumer envisaged.
Equally, how would you feel if your new, sustainably sourced and manufactured jacket was delivered to your door in a non-recyclable plastic bag?
The Knowledge Gap - When it comes to ESG compliance, or otherwise, and the potential for greenwashing, the lack of knowledge and understanding is a significant challenge for organisations and consumers alike. Blatant greenwashing should be called out for what it is but we need to be careful not to punish those who are seeking to do the right thing. There will be many, many instances where an unwitting lack of knowledge leads to a sub-optimal result. Even amongst the so-called professionals there is such diversity and lack of clarity and standards that it can lead to wildly differing results. I read recently that three major consultancies had all completed a thorough review of Tesla’s environmental credentials. One ranked them top of its table, another in the middle and another towards the bottom! How are we supposed to make decisions in that sort of environment?
We should be careful not to be too judgemental for fear of unjustly labelling an organisation whose environmental intentions are honourable. However, we must also be very diligent, for allowing the use of greenwashing to expand undetected or without check will be to the detriment of us all. Those organisations who have started an environmentally conscious journey and those consumers who are keen to spend and invest their hard earned money in a more positive manner deserve better.
We are all on a journey. First and foremost it is the intention to do the right thing that is most important. From there we need to work collaboratively to establish and follow best practices. We would be delighted to hear from you with your thoughts and observations on how we can make ESGmark better for all of us.