The Perils of Greenwash

Received wisdom has it that one of the major casualties of the economic crisis has been consumers’ enthusiasm for the ethical and green product lines that have made such strides over recent years.

Our latest global tracking data is telling us otherwise, and in fact suggests that ‘ethical consumers’, who look to reward responsible companies and punish irresponsible ones, are more numerous than ever. But what’s also clear is that there is growing disappointment in a number of key markets – Germans are particularly downbeat – about companies’ performance in being responsible, particularly when it comes to environmentally-friendly products. Many consumers are sensing that the increasingly bold claims that are being made for products’ environmental credentials aren’t always justified. In 2008, for instance, the UK’s Advertising Standards Authority upheld a record number of complaints about environmental claims. Greenwash is alive and well, it would seem.

An interesting new report by Consumer Focus adds weight to this argument and makes clear what’s at stake – if consumers don’t trust the claims that companies make, they become reluctant to exercise their green purchasing power as they don’t know who to believe. Which doesn’t bode well for the prospects of building a low-carbon and sustainable economy.

Consumer Focus’ recommendations for advertisers (and those who regulate them!) in generating confidence and trust in green claims are that they should be clear and easy to understand; that they should be credible (realistic, accessible and verifiable – they have to mesh not only with what consumers already believe about the brand and the wider market but also with their existing beliefs) and comparable (providing simple, meaningful and like-for-like comparisons).