“Greenwashing” is the act of making false or misleading claims about the environmental credentials of a product or a service. This is an increasing problem as consumers’ interest in environmentally friendly shopping grows, and organisations try to meet that demand with ‘green’ products or services.
While it is great news for the environment that more companies are considering their green credentials, it can be concerning if those claims aren’t true. It’s not easy for consumers who often want to do what is best for the environment, especially as some of the language involved can also be highly complex or scientific.
Not only is greenwashing misleading to consumers, it can also damage companies whose claims are genuine by confusing customers and creating cynicism. Some consumers who want to help the environment may in fact be misled into choosing products which damage it.
Making environmental claims that cannot be justified is illegal under the Fair Trading Act and companies can be prosecuted. The Commerce Commission’s ‘Guidelines for Green Marketing’ [PDF 101 MB], is a guide for businesses which gives all the information they need to comply with the Act. It’s also a great resource for consumers to check if businesses are complying with the Act. Some of the main things to look out for are listed below.
Some of the most common types of greenwashing include:
Lack of proof: claims should be able to be substantiated. For example, claims about the amount of recycled content in a product should be able to be proven. If the manufacturer can’t do this, they shouldn’t be making the claim.
Vagueness: claims should be specific, not unqualified and/or general statements. The use of terms with no clear meaning, such as ‘environmentally friendly’, ‘green’ or ‘safe for the environment’, is vague and can be misleading. Claims should be more specific than this.
Jargon: claims should be in plain language. The use of scientific or technical language can confuse and mislead consumers; best practice is to avoid it.
Irrelevance: claims should only be made for a real benefit. For example, claiming an aerosol product is ‘CFC-free’ is irrelevant because CFCs are prohibited in almost all aerosols. No competing products would contain CFCs either so the claim risks misleading consumers.
False or misleading use of labels: claims using endorsement or certification should be treated with caution. An example of this is if a product that either gives the impression of third-party endorsement where no such endorsement exists, or has endorsement but gives a false impression of what that endorsement means. The Ministry of Economic Development’s Ecolabel Directory is a good place to check what these labels or endorsements mean, and who ‘owns’ the label.
Hidden trade-offs: claims should consider the whole product life cycle. A ‘green’ product produced in a dirty factory is a hidden trade-off.
Suggestive pictures: pictures can also be representations. Watch out for greenwashing through the use of images, such as forests, the earth, or particular animals. These can make representations that are misleading to consumers.
Outright lies: claims must be accurate.
If you do think a company is making a false green claim, let the Commerce Commission know.
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