Are we just putting lipstick on a pig when it comes to sustainability claims?
Greenwashing is defined by Investopedia as “the process of conveying a false impression or misleading information about how a company’s products are environmentally sound” and has been around since the 1980’s. The rise in consumer demand for companies to demonstrate a commitment to environmentally sustainable products and processes has left companies stumbling to find their feet not unlike watching Jennifer Lawrence stumble her way on stage at the Oscars.
ASOS was one such company that had marketed its products as ‘sustainable’ and ‘green’, but later saw these claims being highly scrutinized by the UK’s Competition and Markets Authority (CMA). The CMA was not alone in their disbelief – fast fashion distributors have long seen claims, complete with pictures, of sweatshops being the true manufacturers. However, these claims were not as easy to disprove as, for example, Donald Trump’s reports of immigrants eating dogs and cats in Springfield, Ohio. In March 2024, the CMA required ASOS and others to sign formal agreements surrounding rules for the green claims. The lack of regulation on a global level has created an environment wherein companies do not have a clear idea of requirements for labeling products as ‘sustainable’ and/or ‘green’ and what might be worse is the only true punishment is public backlash. Lack of recognized accreditation on both a state and global level can confuse all involved, stakeholders and consumers alike. Does the CMA’s guidance around misleading information surrounding a company’s products go far enough to protect the public’s interest?
The CMA’s Guidance on Making Environmental Claims on Goods and Services was published in September 2021 and prohibits making false claims around claiming endorsement without receiving authorization from the respective agency. While this is an excellent starting point for ensuring appropriate regulation concerning greenwashing – there also needs to be government oversight over organizations that endorse products as eco-friendly. Organizations that certify or stamp products as eco-friendly or sustainable or any of the other green buzzwords should be under strict governmental oversight much the same way they regulate device safety standards such as seatbelts.
Greenwashing may be an attempt to create impactful marketing campaigns however it should be recognized as it truly is – fraud.