Galt Global Review

QFS 360

 
March 28, 2008

greenwashing


by Faye Mallett



Nearly ten years ago, in 1999, the Oxford English Dictionary added a new word to its repertoire: "Greenwash," which it defined as "disinformation disseminated by an organization so as to present an environmentally responsible public image."

Have no doubt. Greenwashing comes in a sophisticated package. We may not always detect the extent to which we are "greenwashed," and this is exactly the intent. Like whitewashing, the term it is derived from, greenwashing masks the truth with a glossy image, the right spin, and a captivating design.

With green products moving from fringe markets into the mainstream at an unprecedented pace, more companies are trying to appear as something they are not to increase their own product demand and revenue. As John Rooks, president of advertising and PR Firm Dwell Creative (http://www.dwellcreative.com), writes in a MarketingProfs article published last year,"Greenwashers manufacture and market popularity."

Who among us hasn't noticed the green branding craze? From new brands to new marketing spins on old brands, it's no coincidence. Marketers know very well that sustainability sells. An increasing number of consumers want "all natural," "earth-friendly" "100% organic" products when given the choice. Moreover, people will typically pay more for a green brand if they believe it is less harmful to the environment.

Greenwashing is attractive for a number of different reasons:

• It is used to attract consumers who care about sustainability;
• It diverts attention away from the real issues at hand, and reduces pressure for regulatory change;
• It requires little to no additional expenditure to change actual performance or products;
• It makes a company appear more attractive for potential investors - especially those interested in ethical investment or socially responsive investment.

A Shell advert suggesting that their oil refineries emit flowers not smoke is a classic example of greenwashing in action. (http://www.foeeurope.org/corporates/greenwash/shell/index.html)

Just as BAE systems once tried to promote their weapons as being environmentally friendly. (http://www.news.com.au/story/0,23599,20426989-1702,00.html)

Yet what about the greenwashing we don’t see?

Earlier this year, TerraChoice (http://www.terrachoice.com), an environmental marketing company, released a study which found that almost all of the environmental claims made for consumer products are false or misleading.

The study reviewed 1,018 "green" consumer products from big-box stores in the United States. Out of these, researchers discovered all but one were marketed with false or misleading environmental claims.

TerraChoice called out products for committing the "Six Sins of Greenwashing." These are the six most prevalent patterns used to greenwash a product or service.

They are:

• The hidden tradeoff. This occurs when an article is labeled "green" based upon a single environmental attribute.
• No certifiable verification of green claims;
• Lying about certification;
• Vagueness (e.g., products claiming "all natural" status);
• Irrelevance (e.g., products claiming to be CFC-free even though CFCs have been banned for 30 years);
• A lesser of two evils situation (e.g. organic cigarettes).

The biggest consequence of greenwashing is that well-intentioned consumers are misled. In time, this could create cynicism and doubt towards all products touting some kind of "eco-status."

Another consequence is that competitive greenwashing takes the market share away from products actually offering legitimate environmental benefits. It also gives the impression that the marketplace is already solving our environmental problems.

Rooks points out General Electric's Ecomagination campaign (http://ge.ecomagination.com/site/news.html) as an example. As part of this campaign, G.E. released a series of "clean coal" ads that claim "harnessing the power of coal is something everybody can get behind."

"What this campaign is void of is facts…Don't be fooled, this is not by chance," Rooks writes. "If you want to attract a loyal green consumer, use concrete data to support your claims. Give them facts and invite them to interpret."

But the premise behind greenwashing is not based upon facts. It is based upon the bet - or the gamble - that the majority of consumers will absorb the emotional message behind an ad, product or campaign. They will absorb it and they will accept it, for greenwashing's bottom line is pinned on the hope that most people will not actually care about legitimacy.