In a world increasingly focused on sustainability, environmentally responsible products and services have become alluring propositions for many companies.
Unfortunately, not all companies flying the green banner can back up their claims when put to the test. One of the tasks of consumer watchdog the Australian Competition and Consumer Commission (ACCC) is to investigate false, erroneous or misleading green-marketing claims - termed "greenwashing" - and take action if it is warranted.
ACCC spokesman Brent Rebecca maintains that "claims should be honest and truthful, detailing the specific part of the product or process they're referring to, using language that average members of the public can understand and explaining the significance of the benefits". He adds another important proviso: "The claims should be able to be substantiated."
"Businesses increasingly make environmental claims in an attempt to differentiate themselves and their products from competitors," says Rebecca, who also notes that "some consumers are prepared to pay a premium for environmentally friendly products".
Zinn says that, generally, consumers are alert to greenwashing practices but, even so, statements from companies can be confusing and difficult to evaluate. That's where auditing of green claims by a respected independent agency can play a valuable role.
"People respect specialists who can audit green claims reliably and without bias," says Zinn. "They look for such approvals on labels - much as expert opinions are respected in other fields.".
True blue "greens"GreenBizCheck is an Australian company that offers an environmental certification program to, firstly, help businesses assess the size of their carbon footprint and, secondly, implement steps to reduce their environmental impact. Its clients achieve bronze, silver or gold certification only after reaching defined thresholds of compliance.
Managing director Nicholas Bernhardt says research indicates that a growing percentage of the Australian population wants to buy green. And, he adds, "genuine, credible green marketing can be a successful tool to generate a competitive advantage."
However, Bernhardt believes a lack of standards and oversight when it comes to greenwashing is a sticking point.
"For instance, companies often make technically correct claims that fail to tell the whole story," he says. "It could be a new recycled product taking more non-renewable resources to produce than the product it replaces. The company's green-marketing claim of using recycled materials is technically true but the process doesn't result in environmental benefit.".
Bernhardt flags some signs of greenwashing:
- Fluffy language such as "eco-friendly"
- Green products from an otherwise "dirty" company
- Suggestive pictures and images (such as an SUV roaring along in a pristine environment)
- Irrelevant claims - emphasising one small green attribute when nothing else is green.
He agrees with Green Team Australia's Rowan Smith on the need for total honesty and transparency - not only for the best interests of consumers but also for the business community.
"Genuinely greener and more sustainable companies stand out in the marketplace and increase market share accordingly."
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