According to research by BSI, 66% of UK consumers are highly engaged with adopting a more sustainable lifestyle and 80% of Generation Z respondents (aged between 18 and 24) say they are more prepared to buy certain products when they have fewer ethical or environmental concerns about them.
This suggests that what’s good for the planet is increasingly good for business and that organizations with strong green credentials have the opportunity to benefit commercially by establishing a good reputation and building a strong brand with customer loyalty.
As a result, what might be termed “green marketing” is increasingly a tool for brands to develop a competitive advantage. But a new Green Claims Code - launched in 2021 by the UK’s Competition and Markets Authority (CMA) - has been designed to ensure the transparent promotion of sustainable products and services that may otherwise appear more sustainable than they actually are, a practice known as greenwashing.
Consumers may be actively looking for greener products and services but it’s not always simple to separate genuinely ethical policies from high visibility promotional branding claims. Green branding strategies might typically include the use of words associated with environmental benefit such as “organic”, “natural”, “eco”, and “green” – but how can consumers know what sits behind these? Equally, how can organizations make clear their declarations are genuinely credible, in the absence of consensus on such terminology.
In his recent talk at Edie 23, Martin Townsend, Director for BSI Centre of Excellence for Sustainability, raised the issue that simply labelling claims as greenwashing risks giving people a pass to not talk about their sustainability challenges and opportunities (known as “greenhushing”). As Martin explains, providing clear alternative pathways for true impact can give organizations greater confidence in talking about their ambitions and the actions they are taking to achieve them.
The good news is there are steps organizations can take to avoid the perception that they are greenwashing or greenhushing:
Back up the buzzwords
To ensure that marketing messages are supported by trusted practices and avoid the possibility of a CMA fine, organizations can focus on using only internationally agreed definitions that take into account the wider picture for working conditions, manufacturing, distribution, and waste disposal. One tool for this is ISO 14021, which specifies the requirements needed for any self-declared environmental claims, such as those used in statements, symbols, and graphics.
Share the full picture
A t-shirt labelled as being made with organic cotton could only contain 0.5% organic material. Similarly, “organically” produced cotton does not equate to “ethically” produced cotton. Not being transparent about the all the facts and not sharing the full picture may risk losing consumer trust - or could be deemed a breach of the CMA’s Green Claims Code.
Be proactive
Company ESG (Environmental, Social and Governance) reports are intended to consistently and transparently share ESG-related risks and opportunities, along with short and long-term plans to improve on sustainability measures. By proactively providing this information, organizations can present a comprehensive sustainability and value story. Additionally, reporting ESG information alongside financial results ensures that sustainability goals are fused with overall long term growth targets.
Get help with adopting trustworthy sustainability reporting
The number of ESG regulations and standards has nearly doubled in the last six years, with more than 600 ESG reporting provisions globally and myriad interpretations of how sustainability is defined.
The International Sustainability Standards Board, launched at COP26, is designed to establish a single framework that regulators globally can use to set rules on sustainability disclosures. It is hoped that the application of consistent environmental reporting standards will bring greater clarity and assurance. These disclosure frameworks will typically require a company to demonstrate how it can evidence meeting the reporting criteria.
BSI can be a trusted partner in this process. Through our Research and Intelligence service, we can identify all the standards that are relevant to an organization, update on relevant new, updated and developing standards, or identify opportunities to participate in creating new standards.
Our Standards Watch service keeps organizations fully informed, via monthly, bi-monthly, quarterly, or annual reports, and status updates. It includes a review of the latest thinking in the relevant area of standardization. With so much progress all the time, organizations tell us this is a vital service to keep them abreast and compliant with the latest thinking.
To tackle greenwashing, work is underway around creating and using industry-wide “common languages” for sustainability measurement and performance. BSI has vast experience as an agent of change toward a sustainable world, by developing credible methods or approaches for the measurement and assessment of various products and services.
As an example, BSI convened a steering group to develop an internationally adopted specification for the demonstration of carbon neutrality (PAS 2060). Verification of this standard helps substantiate claims that businesses are indeed carbon neutral.
To substantiate a product’s carbon neutrality claim, The BSI Kitemark™ for carbon neutral products certification program, based on ISO 14067 and PAS 2060, confirms that a product has been assessed against international standards and has passed rigorous testing criteria confirming that it meets its carbon-neutral claims.
Through our services, we also help organizations to shape their sustainability strategies (Find out more).
Get in touch to find out how developing a fast-track standard can benefit your industry. Or download our brochure to see how BSI Knowledge Services can help you to define and meet your sustainability goals.
