Greenwashing: How green is your purchase?
Every year, Earth Day provides an opportunity for marketers to trip all over themselves professing love for the environment.
Companies do this because their customers expect it. What they don’t expect is that companies will do it so badly.
BACKGROUND
Decades of sociological changes created the foundation for brands to become tools for identity creation. Where we used to be defined by religion, family, and jobs, today we are more likely to be defined by Starbucks, Adidas, and Tesla.
Because brands are so fundamentally tied to who we are, we expect them to be embedded with values important to us. Companies do this by aligning their brands to causes—from breast cancer to education to the environment. While this started in the 1980s, this marketing strategy took off in the early 2000s after the horrific events of September 11th. You might remember brands wrapped themselves in the American Flag and George W. Bush urged Americans to go shopping because somehow consumerism would return us to a sense of normalcy.
To understand how pervasive this is today, here are some stats:
86% of consumers say brands should take a stand on social issues, with 64% saying they are very likely to buy based on that commitment.
76% say supporting companies that are actively addressing global issues helps them feel like they are doing their part.
78% of consumers believe companies should have a point of view on environmental sustainability
(Sources: 2019 Porter Novelli Cone Purpose Report; Porter Novelli Purpose Priorities Report, 2022)
Recently the Edelman Trust Barometer found that people now trust businesses more than other institutions, like the government or the media. This is surely due, in no small part, to the marrying of brands to values and values to our identities.
“Greenwashing…happens when a company exaggerates either its general environmental practices as a company and/or exaggerates the environmental attributes of a specific product or service. ”
Greenwashing – 2 examples of what not to do
Coca-Cola
Coca-Cola Life was introduced in 2013. This product has nothing to do with being environmentally friendly, but the packaging sure did want you to think so. The soda was made with Stevia so it had fewer calories than the regular product. It failed miserably and is no longer on the market.
More to the point, Coke promotes endless refreshment, claiming they provide a place where consumption can lead to “a world without waste” because their bottles are made with recycled materials.
Doubling down, Coke’s website uses lots of green and questionable statistics to suggest their initiatives are making a difference for the planet.
But do they help the planet? Not even close.
Coca-Cola admits it produces 3 million tons of plastic packaging a year –200,000 bottles a minute –making it the world’s #1 plastic polluter.
Recycling, as it exists now, does little to curb plastic pollution. Less than 10% of discarded plastics are recycled.
In 2020, the company announced it would not abandon plastic bottles because they were popular with customers.
EXXON
So what’s the problem? Looks like a great idea.
The issue is that the ad exaggerates the company’s investment in clean energy. They spend less than 1% of its capital budget is spent on renewables.
Attorneys general around the country are taking Exxon to court using consumer protection regulations to sue for misleading consumers with false advertising. You may remember that the Sandy Hook families successful sue gun-maker, Remington, using a similar strategy.
What can you do?
Stop supporting companies that profess environmental Stewardship, but whose business model makes this an oxymoron. Example: Retailer H&M has a large sustainable section on their website but their business model is one of fast fashion, which means they expect to turn over their merchandise every few weeks.
Be conscious of what you buy and why you buy it. A great example here is cosmetics. Young folks want to look good in selfies and on social media, driving the sales of these products. However, these products lead to billions of tons of rigid plastic ending up in landfills.
Educate yourself: Truth in Advertising has a section devoted to Companies Accused of Greenwashing.
