DON’T BE FOOLED BY GREENWASHING

Greenwashing – the process of conveying a false impression or misleading information about how a company’s products are environmentally sound – is commonly practised today. It is an attempt to capitalise on the growing demand for environmentally sound products.

Products are greenwashed through a process of renaming, rebranding, or repackaging them. Greenwashed products might convey the idea that they’re more natural, wholesome, or free of chemicals than competing brands.

Companies that make unsubstantiated claims that their products are environmentally safe or provide some green benefit are involved in greenwashing. Such claims deceive consumers into believing that a company’s products are environmentally friendly or have a greater positive environmental impact than they actually do.

EXAMPLES of Greenwashing

> A plastic package containing a new shower curtain is labelled “recyclable”. It is not clear whether the package or the shower curtain is recyclable. In either case, the label is deceptive if any part of the package or its contents, other than minor components, cannot be recycled.

> An area rug is labelled “50% more recycled content than before”. In fact, the manufacturer increased the recycled content to 3% from 2%. Although technically true, the message conveys the false impression that the rug contains a significant amount of recycled fibre.

> A trash bag is labelled “recyclable”. Trash bags are not ordinarily separated from other trash at the landfill or incinerator, so they are highly unlikely to be used again for any purpose. The claim is deceptive because it asserts an environmental benefit where no meaningful benefit exists.

OTHER TYPES of Greenwashing

One common form of greenwashing is to include misleading labelling or bury environmentally unsound practices in the fine print. This can include use of terminology such as “eco-friendly” or “sustainable”, which are vague and not verifiable. Imagery of nature or wildlife can also connote environmental friendliness, even when the product is not green.

Companies may also cherry-pick data from research to highlight green practices while obscuring others that are harmful. Such information can even come from biased research that the company funds or carries out itself.

Source: Investopedia