With global warming, pollution, deforestation and the hole in the ozone layer, the environmental crisis is spiralling. Brands are coming under increasing fire for their ‘green credentials’, facing constant pressure to minimise their carbon footprint, reduce waste and pave the way for a more sustainable future. But are these efforts all they’re cut out to be?
While a lot of brands take CSR seriously, many have also been accused of greenwashing – making misleading green statements that hoodwink consumers into believing they’re environmentally friendly, when the reality is very different.
Take Amazon for example – a brand accused of greenwashing on an epic scale. In 2021, the company admitted releasing 71.5 million tonnes of CO2 equivalent – more than Austria, Israel, Singapore and 150 other countries. Attempts to improve their green credentials included the launch of Amazon Aware - a line of ‘more sustainable’ everyday essentials. Great in theory, until investigations revealed that items from the range had been manufactured up to 5,000 miles away, before then being delivered in single-use plastic. Hardly sustainable.
In response to the crisis, consumers are consciously changing their purchasing habits and dramatically increasing their sustainability demands. In fact, 1 in 3 consumers (30%) stopped purchasing certain brands/products because of ethical or sustainability-related concerns (Deloitte).
Sustainable brands, who truly make good on their promises and can fully back up their claims, are set to have a serious advantage in the future – especially with younger generations. According to Harvard Business Review, Gen Z and Millennial customers are 27% more likely to purchase than older generations when they believe a brand cares about its impact on people and the planet – a testament to the power of sustainability in driving consumer habits.
For smaller brands, without CSR teams, environmental consultants and big budgets to invest in sustainable practices, improving green credentials can be daunting. When consumers are demanding sustainable products, it’s tempting to shout about the first thing you can think of that makes your brand environmentally friendly, but it’s important not to fall into the greenwashing trap.
The truth always comes out in the end and consumers can see through unsubstantiated claims and marketing ‘fluff’, with 28% stating unclear labelling as a main barrier to sustainable purchasers.
According to research, highly trusted companies outperform others by up to 400% in terms of market value (Harvard Business Review). After all, trust is what drives consumer behaviour and damaging that trust can cause exponential damage that’s difficult to come back from. Not to mention, by making false claims, you could be breaking the law.
Unsure whether to shout about it? The government website has a handy Green Claims Checklist to cross-check as a starting point. Answer ‘no’ to any of the below and it could be back to the drawing board…
1. The claim is accurate and clear for all to understand
2. There’s up-to-date, credible evidence to show that the green claim is true
3. The claim clearly tells the whole story of a product or service; or relates to one part of the product or service without misleading people about the other parts or the overall impact on the environment
4. The claim doesn’t contain partially correct or incorrect aspects or conditions that apply
5. Where general claims (eco-friendly, green or sustainable for example) are being made, the claim reflects the whole life cycle of the brand, product, business or service and is justified by the evidence
6. If conditions (or caveats) apply to the claim, they’re clearly set out and can be understood by all
7. The claim won’t mislead customers or other suppliers
8. The claim doesn’t exaggerate its positive environmental impact, or contain anything untrue – whether clearly stated or implied
9. Durability or disposability information is clearly explained and labelled
10. The claim doesn’t miss out or hide information about the environmental impact that people need to make informed choices
11. Information that really can’t fit into the claim can be easily accessed by customers in another way (QR code, website, etc.)
12. Features or benefits that are necessary standard features or legal requirements of that product or service type, aren’t claimed as environmental benefits
13. If a comparison is being used, the basis of it is fair and accurate, and is clear for all to understand
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