Green or Greenwashed?

This month RENEW is reading about the truth versus reality when it comes to corporate sustainability. Even though a company may pledge to engage in sustainable practices, their actions may not always align. Some companies are reliable while others mask their unsustainable practices.

Greenwashing has become increasingly prevalent because consumers are interested in buying sustainable products from environmentally conscious companies. Greenwashing, which means that a company is putting forward a claim that a product or practice is more sustainable than it is in reality, is unfortunately common. The U.S. Federal Trade Commission (FTC) posts recommendations for companies to market their sustainable goods to inform consumers. The website also has an option to make a complaint against a company. By misleading the consumer by not providing the full context, companies can get away with pretending to be more sustainable than they are. In recent years, the Advertising Standards Authority (ASA) called out five companies, including BMW, for deceptive advertising. The ASA instructs consumers to check the validity of the product’s sustainability and directs businesses to plainly and truthfully explain the environmental benefits of their products and methods.

With more and more consumers demanding environmentally friendly practices and products, “Greening” up marketing or the brand story will not suffice. Meeting consumer demands require significant changes to processes and products, and even in the COVID-19 landscape, these changes and true commitments are happening.

In June 2017, the Science Based Targets initiative (SBTi) approved Unilever’s goal to decrease their GHG emissions by 2030. Since then, the European consumer goods organization has actively worked to live up to their commitment. In September 2020, Unilever announced that they were replacing the fossil fuels used in their cleaning products and instead will use reusable carbon. The company is expanding possibilities for their industry by changing what these products can be made out of while pushing other manufacturers to use sustainable alternatives. This initiative also gives €1 billion to their Clean Future Fund. The President of Home Care, Peter Ter Kulve, states, “We’ve seen unprecedented demand for our cleaning products in recent months and we are incredibly proud to play our part, helping to keep people safe in the fight against COVID-19. But that should not be a reason for complacency. We cannot let ourselves become distracted from the environmental crises that our world – our home – is facing. Pollution. Destruction of natural habitats. The climate emergency. This is the home we share, and we have a responsibility to protect it.”

In February 2017, Tetra Pak’s commitments were approved by the SBTi, which included decreasing GHG emissions by 2040. The food packaging business continues to work towards this goal. In July 2020, their new program, Tetra Rex, focuses on their reusable containers to store a variety of foods and liquids. The Company replaced single use plastic with a plant-based product created from sugarcane and paperboard from wood fibers certified by the Forest Stewardship Council. The CO2 released in the manufacturing process is 32% less compared to the process that uses fossil fuels. Since Covid-19 and the increase in single-use products, Tetra Pak has encouraged­­ consumers and manufacturers to work together to make and use sustainable and reusable products.

Public concern for the environment has steadily increased in strength and urgency. Greenwashing exists to meet this demand without the company doing the hard and sometimes expensive work of making that product or service green. The act of greenwashing is a signal that the corporation knows what consumers want, which is a step in the right direction, but is not willing to make the hard choices to meet the challenges ahead. Companies committed to Environmental, Social, and Governance “ESG” values are doing more than “Greening” their messaging. They are making commitments to independent third-party verification organizations like Science Based Target Initiative and B-Corp. It is not surprising that these are the same companies prepared to meet the new challenges that the ever-changing world brings.