Green claims are environmental statements suggesting that a product, service, process, brand, or business, benefits the environment or is less harmful to it. 

Green claims should accurately describe a product, service, process, brand, or business's impact without hiding or distorting essential information.

These green claims can:

  • expressly state or imply that a product has a positive environmental impact, is less damaging than previous versions, or is superior to competitors in this regard
  • address the sourcing of materials, production processes, packaging, transportation, use, or disposal of goods
  • appear as statements, symbols, graphics, logos, colours, or even product brand names, and
  • be found on advertising and other communication channels.  

Spotting Misleading Green Claims: Greenwashing

Misleading green claims occur when businesses exaggerate or omit crucial information to give the impression that their products, services, processes, brands, or overall operations are more environmentally friendly than they actually are. Making misleading environmental claims is referred to as "greenwashing". 

The proliferation of "green stories" and environmental claims can overwhelm and confuse consumers, making it difficult for them to distinguish credible environmental claims from those that are merely greenwashing. 

Current Landscape of Green Claims

Currently, many labels and advertisements are dominated by company-specific environmental claims about products being "natural," "green," "eco-friendly," "biodegradable," or "recyclable", all of which are lacking consistent or rigorous standards. Recent reports indicate that approximately 42% of consumer websites reviewed contained exaggerated, false, or deceptive green claims.

The Risks of Misleading Environmental Claims

Any false or unsubstantiated green claims can attract scrutiny from regulators — the consumer watchdogs. It can also invite potential litigation from the likes of competitors, customers, or consumer advocacy groups. 

Beyond immediate legal challenges, the erosion of consumer trust poses a significant long-term threat. For example, Millennials and Gen Z consumers, who wield substantial influence through social media, actively denounce greenwashing and deride brands perceived as disingenuous. This negative publicity can tarnish reputations and undermine decades of brand equity.

Brands Under Scrutiny: Meeting Evolving Consumer Expectations

A brand represents a consistent promise to fulfil the needs of the purchaser. Historically, since the advent of the first trademarks, brands have been a symbol of predictable and repeatable quality. Nowadays, consumer needs have evolved to extend beyond the functional aspects of a product to include holistic, emotional and psychosocial expectations. Brands have become symbols of the values of the brand owner. 

Despite this, consumer confidence in brands is waning, exacerbated by challenges in environmental claims. Kantar's 2023 Global Sustainability Sector Index revealed that over half of all consumers think that false or misleading sustainability claims are made in relation to brands across all industries.

A Path to Authentic Sustainability: Building Trust and Value Through Genuine Eco-Friendly Practices

Brand owners should not shy away from sustainability efforts despite the existence of greenwashing. The key is to reflect the eco-friendliness of a brand honestly and transparently. Brands must clearly define the brand owners' response to the sustainability revolution and align with changing consumer values. 

Authentic sustainable practices have enormous potential to influence the purchasing behaviours of eco-conscious consumers. If done right, signifying sustainability contributes to brand value.

The 2023 Kantar Global BrandZ Top 100 shows that sustainability contributed USD$193-billion to the top brands. Brands rating highly on the Kantar Sustainability BrandZ Index grew in value by 31% year-on-year, outpacing the average for the Top 100 Most Valuable brands.

Part 2 considers the South African regulatory framework that governs green claims and obligations that brand owners have regarding the accuracy and credibility of their advertising. 

For more information, visit www.spoor.com. You can also follow Spoor & Fisher on Facebook or on LinkedIn. 

*Image courtesy of contributor