Eco-Finance

Joining the dots between cost and carbon reduction for finance directors

Greenwashing continues to be (your) problem

It appears that UK consumers are among some of the most aware and discriminating when it comes to spotting companies that are genuinely ethical and sustainable and those that are just ‘greenwashing’, as complaints to the ASA continue increase about companies that advertise one thing, but practice quite another.

In the USA, it’s business as usual, with seals of approval being invented and awarded to anyone who can show that they mean well (there is still very little in the way of solid metrics involved), awarded by organisations such as Good Housekeeping and Iconoclasts Inc… which is nice.

For our domestic market share to be preserved and added to, however, you’d better do more than just make claims.

So, from a recent report, “Understanding and Preventing Greenwashing: A Business Guide”, here are 10 things you should avoid doing if you want to be taken seriously:

1. Fluffy language
Don’t use words or terms with no clear meaning. If your products has a benefit, define it; if your service reduces carbon footprint… define it (e.g. “eco-friendly”).

2. Green product vs. dirty company
If you manufacture low wattage light bulbs made in a factory that pollutes the air, rivers, etc., we still won’t buy from you

3. Suggestive pictures
By all means make your web site or marketing copy look attractive, but green images that indicate a (unjustified) green impact (e.g. flowers blooming from exhaust pipes) will alienate your client base

4. Irrelevant claims
Emphasising one tiny green attribute when everything else is not green merely highlights the deficiencies in the rest of your operation and will only serve to diminish your impact

5. Best in class
What class? Declaring you are slightly greener than the rest, when the rest are pretty terrible has already backfired on the oil companies; don’t let it backfire on you

6. Just not credible
“Greening” a dangerous product doesn’t make it green! … oil companies, again.

7. Jargon
There is a lot of science supporting the need to be more sustainable and environmentally-conscious; Information that only a scientist could check or understand is probably not the best way, however, to endear your audience to you or your product

8. Imaginary friends
A “label” that looks like a third party endorsement - except that it’s made up. This is about as useful as having a star or ‘recommended’ or a badge from any number of the newly created organisations (such as ones mentioned above); it’s meaningless and obviously so

9. No proof
Gone are the days when you can make green claims without substantiating them in some way; Marks & Spencer claimed that Plan A contained 100 different measures to reduce their impact on the environment… what are they? It could be right, but where’s the evidence?

10. Out-right lying
Totally fabricated claims or data are a dangerous route to take; don’t forget your competition will stop at nothing to make you look bad – remember HP, Apple or Dell?

It only takes a few minutes, so use them to check your literature and your web site; are you saying stuff you shouldn’t? If so, stop saying it or do something to substantiate your claims. You only have your market share to lose.



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