World leaders, governments and business are all making commitments to address the climate crisis.
At COP26 in November, pledges were announced on coal, transport, deforestation and methane in a bid to close the 2030 emissions gap between a 1.5°C path and government targets by around 9%.
The agreements included 100 countries committing to stop deforestation by 2030 and more than 100 nations promising to cut methane emissions by the same year.
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Some 20 countries also pledged to halt public financing of fossil fuel projects overseas, while 23 nations committed to phasing out coal-fired power.
There has been much talk from business too - from global corporates to newly founded startups - about sustainability strategies and plans to do their bit to help address climate change.
But how much are these firms really doing to help the environment?
In January, the Competition and Markets Authority (CMA) introduced which are designed to stop firms making claims their products and services are greener than they actually are - a term known as ‘greenwashing’.
According to the Chartered Institute of Marketing (CIM), 55% of companies see sustainability as a business priority and are keen to make claims about their achievements in their marketing. But, a recent study, coordinated by the CMA, found that up to 40% of sustainability claims made online could be false.
What is greenwashing, exactly?
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Pamela Barbato, founder of Bristol-based Action Net Zero, an organisation that helps businesses reduce carbon emissions, says greenwashing is widely defined as “activities by an organisation that are intended to make the person think it is concerned about the environment, even if its real business actually harms the environment”.
According to Ms Barbato, there are a number of methods that are used by organisations including:
- Misleading consumers: This is when companies market their products as green rather than genuinely making them sustainable. Examples include businesses stating they don’t use single-use plastic, but replacing single-use for other forms of plastic and therefore not addressing the eradication of plastic from their operations.
- Being economical with the truth: Often companies suggest they sell sustainable products by using words such as ‘100% organic’, ‘carbon neutral’, ‘net zero’, ‘100% sustainably sourced materials’, ‘natural’ and ‘eco-friendly’. These words present the product as being authentically sustainable. However, Ms Barbato says the reality is often an element in the product is sustainably sourced or natural but the process of making it is not. Shining a light on a single positive while covering up other negatives is a classic greenwashing practice.
- Lack of factual evidence or certification: Genuinely green companies are transparent and open about their green credentials; they do this by certifying and evidencing what parts of their products or operations are green. They are also open about the fact they still have a negative impact on the environment in other ways; these businesses will tell all sides of the story, not just the positive side.
Watch out for offsetting
Offsetting can be a major greenwashing issue, according to Ms Barbato.
Many organisations in markets that are high-carbon polluters, such as oil and gas, are using offsetting as a tool to mitigate their negative impact on the planet by paying for carbon reductions somewhere else.
“[These firms], instead of reducing their own carbon emissions, are paying someone else to cut theirs or capture carbon elsewhere - it has become a popular and sophisticated way of companies saying they are sustainable or carbon neutral," she explained.
Planting trees is a popular offsetting practice but, according to Ms Barbato, many are not planted effectively, aren’t maintained, and sometimes do not live long enough to sequester carbon as they were planned to.
What should consumers do if they are concerned?
“Education about greenwashing begins with individuals wanting to be more informed; that is knowing fact from fiction and wanting to seek out the truth,” added Ms Barbato.
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“I know most people don’t have the time, but it’s crucial that individuals do not take messages at face value.
“Sustainability marketing is big business; it’s a key challenge to addressing the climate crisis. David Attenbourough famously described saving the planet as a ‘communications issue’. Greenwashing is at the heart of this issue.”
Her advice to consumers worried about greenwashing is:
- not to take messages at face value and look for evidence that backs up claims;
- look into a company’s sustainability policy and strategy to get the whole truth;
- if it’s not evidenced then assume it’s marketing hype;
- look behind the buzzwords and do some research;
- rely on the right sources; there are many sites that can advise and provide accurate information;
- Seek out and buy truly sustainable brands, whether clothing, food, transport or energy.
Ms Barbato added: “Organisations must be clear and transparent about their net-zero journey. They must demonstrate how they’re going to get there; clarity, vision and authenticity are key to gaining trust.”
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