Diwali is when we get into whitewashing mode—making the house look far better than it is and hiding the spots so that people can better perceive the family and its stature in life. This is similar to Greenwashing—the corporate whitewash- or an attempt to be seen as GREEN. The only difference is that in the whitewash, no one is a victim, and it’s not-for-profit, while Greenwashing has its societal impact and is aimed at profit.
Greenwashing provides the public, investors, or other stakeholders with misleading or false information about a company’s product and operations’ environmental impact. The claims usually aim and are successful in making the targeted stakeholder (including consumers) believe that the company is sensitive to the climate impact and is doing substantially concrete around and about it. It is also a way to mask companies’ otherwise damaging practices. Greenwashing also promotes false solutions, distracting and delaying tangible steps and actions.
Greenwashing originated in 1960 when the hotel industry started asking travellers to reuse their towels to help save the environment. Trusted brands like McDonald’s, Volkswagen, Coca-Cola, Walmart, ZARA and Unilever have been criticised for their efforts and greenwashing.
Greenwashing is like an industry. It involves PR, Product labels, Annual report claims, advertisements, purpose-led product development, events and claims. It is like chakravyu, and it is tough for the company to exit. At the same time, there are penalties for companies that are proven to be indulging in greenwashing. There may be monetary penalties, damaging news, and adverse negative reactions from existing and future consumers.
Companies shamelessly practise greenwashing, which has affected consumer belief about brand claims, resulting in even the genuinely Green-inclined companies losing their advantage.
The new generation is more proactive about the environmental impact of brands and practices, and in many ways, they promote and at least project positively favouring products with comparatively better green values.
Finally, the Ministry of Consumer Affairs has released guidelines and regulations for greenwashing in advertisements. It is an extension to the guidelines in misleading advertisements and endorsement of misleading advertisements, 2022. It asks that any product claiming to be eco-friendly, green, or sustainable must disclose the basis for their claims. Brands failing to comply could face penalties for misleading advertising and unfair trade practices. It includes concealing, omitting, or exaggerating information regarding environmental claims. All this aims to help the brands make their green claims with integrity and transparency.
It is a good step, but based on earlier experience with such guidelines, one is doubtful of their impact in real life.
In the past, many brands have been caught, reported, and penalised for Greenwashing; however, consumers mostly remain unaware of such trespassing by the brands. The media has a huge role in educating people about the ills of greenwashing, reporting the brands that indulge in it and thus supporting the cause and the genuine green companies.
Greenwashing Guidelines, or Guidelines against fraudulent greenwashing, aim to plug the loopholes and simplify the redressal. Earlier, multiple acts, regulations, and guidelines, such as the Consumer Protection Act, Environment Protection Act, and the often-quoted Advertising Standards Council of India (ASCI), led to confusion.
The new guidelines may bring consumers to once again trust the product labels, something that had been a central piece and one of the most effective ways of greenwashing. We all have heard and reacted to terms like Eco-friendly, Sustainable, Recycled, 50% More recycled, Good for the planet, Zero emissions, Natural, Organic, Sustainable, Cruelty-free and Less Plastic. All of these are wholly vague and completely non-verifiable. Companies also share selective data and camouflage the ones damaging to their environmental impact or even use non-authenticated internal self-research over statistically invalid sample sets. The new guidelines do not stop brands and companies from making any claim- it only asks them to substantiate their claims.
The issue of ESG, which is more focused on evaluating companies based on their corporate sustainability practices and governance structures, remains a mythical parameter – prone to massive misrepresentation. Companies use non-standardised, vague claims about Environmental, Social and Governance factors and their impact on investing. There is a lot we need to do on this count.
We hope that consumers and the consumer lobby do not take things too seriously and push for an overnight shift, which cannot happen. Companies will take steps, but the gap between what is needed and what is done will remain huge. However, it will shrink with every step. So, consumers should appreciate every bit of these nudges and small steps—in a few cases, the first tangible steps. At the same time, they will have to be vigilant and not allow GreenWashing, GreenWishing, and GreenHushing.
#GreenerTogether
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