Is This The End Of Greenwashing?

With new legislation and increasing regulations, companies are coming under more pressure to justify all environmental claims in their marketing or face a hefty fine

In February this year, UK advertising’s non-profit education programme Media Smart launched a social media campaign to teach children and young people to spot greenwashing claims made in advertising and marketing messages. The project came in response to a survey by the education programme that found that more than half of all children don’t think enough is being done to combat climate change. It’s fair to say that as soon as children are aware of the misinformation and dishonest spin organisations are relying on to justify poor sustainability practices, then the game is up.

Since its foundation in 2008, Two Sides has been a tireless campaigner against greenwashing, and in the past five years, it has successfully engaged with a large number of high-profile brands and companies to take more decisive action against the practice, while demanding higher standards of proof to back up vague claims of eco-friendliness.

And now it seems the tide is really turning…

Skeletons In The Closet

Ironically, we’re likely to hear more about greenwashing while it’s in the process of being stamped out. With plenty of eco-skeletons hiding in the closets of companies around the world, the term is likely to remain a regular fixture in the news as more and more organisations have their secrets exposed.

In February of this year, for example, The Corporate Climate Responsibility Monitor published a wide-ranging report on 24 large companies with links to the Race to Zero campaign. Amazon, Samsung, Nestlé and Uniqlo were among those whose sustainability claims0 were singled out as being of “low” or “very low integrity”. Many of these organisations were also found to be on course to miss their own stated sustainability targets.

While once advertising and marketing watchdogs might have seemed unable or unwilling to stand up to the financial might of multinational corporations, recent high-profile cases suggest they are growing sharper teeth.

In June 2021 the Advertising Standards Authority (ASA) ruled that a commercial for the hydrogen-powered Hyundai Nexo car misled consumers when it claimed that the vehicle “purifies the air as it goes” since it had overlooked the other forms of pollution produced by the vehicle. The ad was taken off the air.

And in February last year, the Coca-Cola-owned drinks brand Innocent saw their animated ad ‘Little Drinks, Big Dreams’ banned by the ASA on the basis that it claimed to have “big dreams for a healthier planet” while continuing to produce damaging plastics.

“We’re concerned many shoppers are being msiled and potentially even paying a premium for propducts thjat aren’t even what they seem.”

Sarah Cardell, CMA Cheif Executive

A Powerful Adversary

While the ASA is doing its bit, the Competition and Markets Authority is a potentially more powerful force against greenwashing. And they’ve been getting tough. At the time of writing, three fashion brands are under investigation for suspect sustainability claims: the ‘Responsible edit’ from ASOS; Boohoo’s ‘Ready for the Future’ range; and ASDA’s ‘George for Good’ range. Concerns have been raised that the proportion of recycled fabrics used may be as little as 20% in some cases, giving shoppers a false impression.

Meanwhile, the FMCG sector is also the subject of a CMA probe, which promises to be extended across more retail giants. “We’re concerned many shoppers are being misled and potentially even paying a premium for products that aren’t what they seem,” said CMA Chief Executive Sarah Cardell. “Our work to date has shown there could be greenwashing going on in this sector, and we’ll be scrutinising companies big and small to see whether their environmental claims stack up.”

France Leads The Way

In Europe, France has been a leading force for change, with all advertisers now required by law to publicly back up their green claims or face a financial penalty.

Last year, it was ruled that car ads must point out that walking or cycling is better for the environment. Then in August, it became the first nation to ban fossil fuel advertising. And from this year, the Climate and Resilience Law prohibits companies from claiming in an ad that their products or services are ‘carbon neutral’ (or similar equivalents such as zero carbon or fully offset) unless they can offer a GHG report and a detailed breakdown of their processes to prove the claim. A fine of €100,000 is threatened to punish the worst offenders.

In the UK, Rishi Sunak’s government is proposing the Digital Markets, Competition and Consumer Bill, which is due to get its first reading in the House of Commons this spring. It would extend the CMA’s powers to punish breaches of consumer laws such as the Consumer Protection Regulations 2008, which encompass misleading and unsubstantiated environmental claims. Civil penalties for offenders could be up to 10% of global turnover, while individuals could be fined up to £300,000.

“As more and more clients are dipping their toes into sustainability, they’re realising the pressures. So with new guidance by the CMA around greenwashing, we really need to lean into the technical detail.”

Jonny White, Senior Business Director, AMB BBDO

The Pressure Is On

In the face of this increased scrutiny, agencies are raising their game to ensure they can robustly back up any claims made. In March, AMB BBDO announced the introduction of a new sustainability division to sharpen its practices in that area.

“As more and more clients are dipping their toes into sustainability, they’re realising the pressures,” Senior Business Director Jonny White told The Drum. “So with new guidance by the CMA around greenwashing, we really need to lean into the technical detail from an account management perspective.”

It’s all coming out in the wash, and time is running out for businesses everywhere to clean up their act.

For more details about the Two Sides Anti-Greenwashing campaign, go to www.twosides.info/anti-greenwash

If you spot any instances of greenwashing, please email the details to greenwash@twosides.info

Greenwashing, The Facts

• 53% – The percentage of sustainability claims in 2020 that the European Commission found were misleading or suspect
• £300,000 – Potential fine for businesses guilty of greenwashing under the Digital Markets, Competition and Consumer bill, due to getting its first reading in Parliament this spring
• 83% – The percentage of investors surveyed by FTI Consulting who said they wanted to invest in more environmentally sustainable startups
• €100,000 – Maximum fine imposed by the French government for companies making misleading environmental claims
• 2,169 – The number of organisations and individuals who have been engaged by Two Sides after making misleading statements about their green practices
• 1,006 – The number of organisations that have consequently removed these misleading statements from their communications
• €22.4m – The annual value of the UK paper, print and mail industry threatened by greenwash
• €337m – The annual value of the European paper, print and mail industry threatened by greenwash

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