Extracted from EnvironmentalLeader.com
Robert Lilienfeld
Editor
The ULS (Use Less Stuff) Report

“Greenwashing” typically refers to marketing and advertising claims that are based on environmental puffery rather than performance. Experience indicates that many claims, even those from sophisticated multinationals, fall under the “greenwashing” banner. While such claims may seem to make sense over the short-term, they create long-term potential for consumer dissatisfaction, regulatory challenges, and even monetary damages.

While standards differ globally, the U.S. Federal Trade Commission (FTC) regulations are a good model to follow virtually anywhere in the world. Listed below are the four factors of most concern to the FTC regarding advertising claims of all types, but specifically environmental claims.

1. Specificity

The single most important point to remember when making claims is to be as specific as possible. Doing so will require that claims be substantiated by communicating all of the following:

• What is being claimed  (e.g., Reduced energy consumption during production…)
• By how much – (e.g., …by 12%)
• Compared to what – (e.g., …versus the previous product formulation.)

Claims that are general or vague are not only considered to be meaningless, the FTC considers them to be deceptive. Technically, this means claims that appear to be simple and harmless, such as “eco-friendly” and “green,” are actually open to scrutiny and legal action.

2. Clarity, Prominence, Comprehension

To further prevent deception, any qualifications or disclosures relating to claims should be clear, prominent and easily understood. According to the FTC, “clarity of language, relative type size and proximity to the claim being qualified, and an absence of contrary claims that could undercut effectiveness will maximize the likelihood that the qualifications and disclosures are appropriately clear and prominent.” Footnotes and other qualifying statements should thus be easy to find and understand.

3. Lack of Overstatement

Environmental claims, attributes and benefits should not be overstated. Both the absolute and relative merits of a claim must be considered.

Example 1: Claiming that a package has been reduced in weight by 50% would be considered deceptive if the package in question now weighed 1 gram, versus 2 grams in the past. However, a 50% move from 16 oz. to 8 oz. would probably be considered acceptable, based upon the absolute change in question.

Example 2: A resin is described simply as being “recyclable.” However, the current recycling infrastructure cannot handle this resin, or it can only be handled in a very few places. Even if the resin is technically capable of being recycled, the claim is deceptive since it asserts an environmental benefit where no significant or meaningful benefit exists.

4. Comparative Clarity and Substantiation

Comparative claims must be stated in a way that makes the basis for comparison as clear as possible. The comparison should also be substantiated.

Please not that in Europe, product comparison claims are either outlawed outright or considered to be a form of unfair competition. Always talk to your legal advisors before making any specific comparative claim versus another company or its products.

To sum up, the best way to avoid the perception of “greenwashing” is to relate advertising claims to clear and specific benefits (i.e., solid waste, water use, energy consumption), while providing meaningful information and data to support the claims. Doing so will help build trust in your company and its products among key stakeholders such as employees, customers, regulators and the media.

Robert Lilienfeld is editor of the ULS (Use Less Stuff) report. Published monthly, The ULS Report is a leading international source of information relating to waste prevention, source reduction, packaging, and sustainable practices. A full analysis of FTC environmental marketing claims by ULS Editor Bob Lilienfeld can be found at http://www.use-less-stuff.com/resources.htm

With the nation seeming to enter a new green era, green “this” and green “that” is everywhere. There are many well-intentioned businesses that want to sell and offer legitimate products and services. Others try to use what they’re doing to show that their products and services are green and therefore should be preferred over others. However, there are some businesses that tend to go too far in advertising their green efforts. In such cases, it is said that such businesses are greenwashing the public.

Greenwashing is the unjustified protrayal of green virtue by a company, an industry, a government, a politician, or even a non-governmental organization to create a pro-environmental image, sell a product or a policy, or rehabilitate their standing with the public and decision makers after being embroiled in some controversy. The problem with greenwashing is that eventually the public finds out about it, making matters worse.

To help you avoid greenwashing, here are 5 tips that you should keep in mind when conducting any activities related to your business:

1. Avoid Giving To Inconsistent Causes. Many businesses tend to help fund politicians, organizations, and projects that may be aligned with what they do. To ensure transparency, make sure your business isn’t funding anything that’s not aligned with the green principles you are committing to.

2. Provide Transparency. If you are going to claim that you are green or something you offer is green, make sure you show why. The public will want access to any information that supports your claim, so make sure that you are explaining your claims in detail to avoid any public attacks.

3. Report Your Efforts Periodically. Many companies are now releasing Corporate Social Responsibility (CSR) reports periodically. These reports highlight efforts to go green in a transparent way and provide a vision for how the business will continue to green its operations, products, and services.

4. Respond to Critics With Moderation. Some companies go too far in trying to silence their critics. This only shows the public that the business may be hiding information. You want to make sure you treat every critic with moderation by providing honest and substantial information that addresses their concerns. If there is something wrong that they mention, moderately acknowledge it and explain how you plan to address it (and then make sure you do).

5. Be Consistent. Make sure your words are matched with appropriate action. If you say you will do something, make sure the business devotes enough resources to ensure it happens in the way it was explained. One mistake many businesses make is to exaggerate something to be done and then realize the impact is much smaller than what was claimed. Make sure your actions match your words to satisfy the public.

If you need help in designing a plan to remain free from greenwashing attacks, consult your local Eco-Consultant. You can get going with greening your operations by getting a Green Office Makeover. Sign up today and start going green!