Greenwashing

Amrit Khosla, Environment Committee

What is greenwashing and why do businesses do it?

After many decades of public concern over the climate warming, the Paris Accord was signed by 196 countries. Resulting from its commitments, net-zero pledges by the governments and industries started to alleviate those concerns. It felt like many products and services were becoming green, which gave hope to eco-conscious consumers that they wouldn’t have to give up everything to save the planet. However, we soon realized that there was a lot of greenwashing at play.

The term “greenwashing” is used for misleading marketing claims made by companies to suggest an environmental benefit of their product, packaging, or service. The suggested benefit may be over inflated, unsupported, vague, or completely false. 

Greenwashing exists in almost all consumer products and services. It attempts to exploit the growing consumer demand for environmentally responsible products. Companies are also trying to skirt the environmental regulations by greenwashing instead of making investments in real changes.

Corporations and the service industry are not the only ones trying to green their image. The banks and governments, at various levels, are also setting targets and making pledges, but constantly delaying the regulations. Additionally, they continuously choose to invest in fossil fuels and other industries that damage the environment. 

How greenwashing harms:

• Greenwashing makes it harder for the eco-conscious consumers to take meaningful action towards reducing their carbon footprint.
• By eroding consumer trust in environmental claims, it makes it harder for genuinely sustainable businesses to be recognized. By doing that, greenwashing is hindering the progress of actual green initiatives.
• Resources that could be used for meaningful environmental improvements are often directed towards deceptive marketing campaigns to greenwash a company’s image. 
• False claims about sustainability are slowing down the global response to climate change. Many companies making net-zero pledges without making substantial changes to reduce emissions give the consumers an illusion of real progress.
• By overinflating their minor sustainability initiatives, a company can escape accountability while engaging in significant polluting activities elsewhere. These kinds of actions can significantly delay meaningful ecological action. It also makes it difficult for regulators to enforce standards and policies effectively. 
• Greenwashing is increasingly becoming a legal issue, with environmental organizations and citizen groups taking companies to court for making false claims. Significant financial penalties, over the long run, add to companies’ costs and consumer prices.

What is the government doing about greenwashing?

Governments across the world are trying to challenge industries making green claims. In the last few years, many companies were charged and made to pay hefty fines for making misleading claims. McDonalds, Lululemon, H&M, Keurig, Exxon-Mobil, Chevron, Coca-Cola, and Volkswagen are some examples. 

Canada’s Competition Act makes it illegal to put out false information. Although some industry challenges under this act were successful, this act was not specific enough to investigate greenwashing. Recently, the federal government passed Bill C-59, which puts the onus on the company to present their plans, and steps taken towards emission reduction when challenged. Such onus includes that any claim of a particular plan achieving certain goals in a given time frame (for example reaching net-zero by 2050), must demonstrate that the plan is workable, effective, and the likelihood of reaching intermediate milestones and the final goal is credible. The public should demand our politicians rigorously enforce these requirements.

Amendment Bill C-372, when passed, will ban the misleading ads by the fossil fuel companies. Pathway Alliance, a group of five major fossil fuel companies, pulled their misleading ads from their website as soon as Bill C-59 was passed. Alberta and British Columbia’s business groups are challenging Bill C-59 in court. Some provinces, such as Ontario and Quebec, have their own Securities Act to address greenwashing. 

How consumers can spot greenwashing and make better choices:

• Genuine, sustainable companies will provide clear, accessible information on their website about their environmental practices. Look for their detailed reports, supply chain data, and labour practices when making major shopping decisions. 
• Many cleaning products, cosmetics, and personal hygiene products have nano plastics and other toxic chemicals such as sodium lauryl sulfate and PFAS added. Look closely at labels, and ask questions from the companies if they are claiming to be eco-friendly.
• Most so-called ‘biodegradable’ bags are not truly biodegradable, but quickly disintegrate and turn into nano plastics, which do more harm in the water. Some compostable bags can only break down in high heat composting. Using cloth bags is always the better option. 
• Natural gas has been promoted as a bridge fuel, because it’s cleaner burning than oil and coal and does not produce carbon. But, it produces methane, which in the short term is 80 times more potent. At this critical stage of accelerated climate change, getting rid of methane would help slow down the rate of climate change faster, and give us more time to find better solutions. For consumers, heat pumps and electric stoves are better options.
• Fashion brands are particularly notorious for making misleading eco claims. All synthetic fibre is made using fossil fuels. Even recycled plastic (although better than virgin plastic) has a large footprint. Natural fibres are better, but look for organic labels, and humanely raised animal products and durable clothing. Vegan leather is often made from fossil fuels, so check the company’s website, and ask questions if you need more information. 
• The most eco-friendly thing is to BUY LESS. Buy fewer things and avoid single use items. Invest in well-made, sustainable products that will last you for years to come. 
• If you are looking to invest in an environmental, social, and governance (ESG) investment, do your due-diligence, and look for companies that engage in ethical, sustainable practices.