Avoiding Greenwashing 101

HSBC has just been fined by the Advertising Standards Authority (ASA) after a series of misleading adverts about their environmental impact. The fine has come off the back of a recent advertising campaign which highlighted how the bank had invested $1TN in climate-friendly initiatives, but, according to the UK watchdog, didn’t acknowledge their own significant emissions. As a result, the bank has been told they have to clearly disclose their climate impact in any future climate-related marketing.

The ruling comes after a string of fines by the ASA, all cracking down on misleading climate campaigns. Alternative milk brand Oatly has been banned for making unsubstantiated statements about their positive environmental impact, Lipton Ice Tea was fined for lack of clarity on their climate position, smoothie company Innocent were ruled to have been exaggerating their environmental impact, and Persil was fined for not backing up the claims they were making.

The ASA’s rulings have been a win for the climate-positive movement, and a serious crackdown on so-called ‘Greenwashing’. At the same time, more and more companies are engaging in greenwashing. In a time where consumers are craving political involvement and stronger values from the brands they’re investing in, it’s easy to see climate change as a marketing opportunity. But most companies with a climate goal have no plan on how to reach it. Luckily, the public and the watchdogs are becoming more aware of misrepresentative marketing and are demanding more transparency and accountability from companies. So how do you navigate this landscape successfully?

So what?

1. Stronger Values - Do you have a climate policy? Are you aware of the emissions your organisation is responsible for? If not, consider implementing a clear plan and commitment within the company. At the end of the day, climate change is not just a marketing opportunity, and before we even think about its marketing value, it’s important to dedicate time to determining a meaningful impact policy.
   
   
2. Transparency, Transparency, Transparency - The key to building trust is transparency. With stronger values, a clear plan of action, and transparency, we’re well on our way to real social impact. Consider common greenwashing techniques and how to avoid them as well. Think campaigns using pictures of idyllic nature or famously in-danger animals to mislead consumers, or ultimately meaningless words like “green” and “sustainable.”
   
   
3. Smarter Partnerships - Think about which organisations you’re collaborating with as well. What are their climate policies? Are they potentially greenwashing their commitment? Plenty of companies cherry-pick their data to make it look better, hawk carbon emission credits that aren’t actually credible, or have asset managers and lobbyists that actively oppose climate positive policies (environmental group Ceres keeps records of company policies side-by-side to voting records). Once your own values are in check, consider what standards you want to hold your partners to.

   
   

4. Be Open To Learning - Climate change isn’t the easiest landscape to navigate. Finding the right policy, that’s actually meaningful, can be difficult, and even greenwashing can sometimes be well-intentioned. If you make mistakes, be willing to learn and adapt to different standards. Companies often try to shift responsibility when they are caught out, but consumers don’t consider this a good look either.

As charities, social impact is the name of the game. Whatever the angle or ethos of your organisation, climate change will ultimately impact every single aspect of society. How are you making space for this in your policy?