Opinion: 50 shades of green - The underbelly of environment & sustainability claims

Manisha Kapoor of ASCI highlights how greenwashing in advertising undermines genuine sustainability efforts and deceives consumers, hindering progress towards a greener future.

In recent years, as the world's environmental concerns have taken centre stage, the demand for sustainable and eco-friendly products and services has skyrocketed. Companies, eager to capitalize on this growing trend, often tout their commitment to sustainability and environmental responsibility. In particular, younger consumers have shown open support and preference for brands that have sustainability enshrined in their principles and their functioning.

The Deloitte Global Millennial Survey (2020) found that 60% of millennials and 55% of Gen Z respondents were willing to pay a premium for sustainable products. Younger generations, in particular, have shown a strong inclination towards environmentally friendly options and are actively seeking brands that align with their values.

However, behind the veil of green promises, a troubling phenomenon lurks - greenwashing and its lesser-known sibling, green hushing. These practices undermine genuine sustainability efforts and deceive consumers, hindering progress towards a greener future.

Greenwashing: A False Shade of Green

Greenwashing refers to the deceptive marketing practices employed by companies to create a misleading perception of their environmental credentials. It involves using clever branding, misleading labels, and exaggerated claims to present products or services as more sustainable than they truly are. In essence, greenwashing cloaks a business's true environmental impact, often leading consumers to make ill-informed purchasing decisions.

One common greenwashing tactic is the use of vague terms. Words like "natural," "green," or "eco-friendly" are plastered on packaging without any substantive evidence or certification to back up the claims. This green gloss may make products appear environmentally friendly, but beneath the surface, they may be no different from their less virtuous counterparts. 

Another commonly used tactic is the practice of highlighting a single positive aspect of a product or service while conveniently ignoring other harmful aspects. For example, a company may advertise a product as "recyclable," when only a part of it may be so. Such selective emphasis gives the illusion of sustainability while distracting consumers from the bigger picture.

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Globally, several organizations have been called out by regulators and consumers for unsubstantiated environment-related claims that were considered misleading or inconsistent with their actual environmental practices. A leading automotive company was exposed for manipulating emissions tests on their diesel vehicles, leading to significantly higher nitrogen oxide emissions than reported. The scandal involved installing software that manipulated emission readings during testing, giving the false impression of meeting environmental standards.

Fast fashion brands have been criticised for promoting certain ranges as sustainable when the entire business model is seen as environmentally damaging. Small energy companies that have small parts of their businesses in clean energy may try and create the impression that the entire company is pursuing a clean energy approach. 

In India too, we see everything from green homes to eco-friendly plastic and from recyclable packaging to low carbon footprint vehicles. These claims can only be made if there is adequate evidence to back them considering the overall impact of such products as well as the entire product lifecycle.

Green Hushing: The other side of the coin

While greenwashing grabs the spotlight, its lesser-known sibling, green hushing, operates in the shadows. Green hushing occurs when companies with genuinely sustainable practices fail to effectively communicate their efforts, leaving their environmentally responsible initiatives unnoticed or underappreciated. Green hushing also could be resorted to by companies who are underconfident of their green credentials or expect a consumer backlash for not doing enough.

The consequences of these practices are far-reaching. Firstly, greenwashing erodes consumer trust, making it difficult for individuals to make informed choices. When misled by false claims, consumers may unknowingly support unsustainable practices, perpetuating environmental harm. Moreover, greenwashing undermines the efforts of genuinely sustainable companies, creating an uneven playing field and discouraging businesses from making authentic sustainability improvements.

Addressing the Shadows: Solutions and Best Practices

Under the ASCI Code and the Consumer Protection Act, misleading claims compromise consumer rights. Greenwashing claims impair the consumers’ ability to distinguish genuinely sustainable products from those riding the greenwashing wave and would fall under the category of misleading ads.

Misleading ads are already covered under the existing ASCI code, however, given the nuanced and complex aspects of green claims, we have now set up a multi-stakeholder task force to examine the issue in greater detail. We are mapping the existing practices and tactics being deployed in Indian advertising, as well as studying global best practices and regulatory interventions. This task force would work on the formation of a guideline framework for all concerned regarding green claims so that there is a common understanding and standard on green claims in advertising. 

Advertising is an important force in the green movement. By creating guidelines for honesty in green claims, promoting transparency, educating consumers, and supporting genuine sustainability champions, we can pave the way for a more sustainable and transparent future and genuine environmental progress. It is important that green is not just an advertising facade but a true commitment to a better planet. 

This article is penned by Manisha Kapoor, CEO and Secretary General, ASCI & is a part of a monthly article series for raising awareness.

Disclaimer: The article features the opinion of the author and does not necessarily reflect the stance of the publication.