SUZSTAINABLE

Transparency & Green Sheen: A Guide to Greenwashing & Greenhushing

Feature Photo Credit by FOX

Greenwashing, or Green Sheen, as I like to call it, a practice where companies make deceptive claims about their environmental efforts, is becoming increasingly sophisticated and challenging to identify. As the public becomes more aware of it, corporations are resorting to new tactics to mislead consumers.

GREEN SHEEN TERMINOLOGY

Corporations from Ryanair to Shell have been called out in recent months for making false or unsubstantiated claims about their environmental impact, however, a new EU law against misleading or unverified green claims aims to address the problem and protect consumers. But marketing companies are constantly finding new ways to pull the wool over our eyes. And new strategies require new vocabulary so we can call them out.

This new vocabulary includes several new terms used to describe Greenwashing tactics, from Greenrinsing, Greenshifting, Greencrowding, Greenlighting and Greenlabelling, which cover a whole host of ways that companies are misleading the public, consumers and investors about companies’ sustainability credentials.

These terms were identified by Planet Tracker (a non-profit financial think tank producing analytics and reports to align capital markets with planetary boundaries) in a report titled “The Greenwashing Hydra”, published earlier this year. The report aimed to make it easier for us all to spot the “many-headed beast” that greenwashing has become in recent years.

Photo Credit: Planet Tracker

Another term “Greenhushing”, which was coined by Treehugger in 2008 to describe the phenomenon of companies deliberately not communicating about their environmental initiatives for fear of being called out, has recently become more common place too. I’ve been reading up a lot about these buzzwords lately, and after looking into what they really mean, I’m here to crack down on these concepts for you.

Transparency

In today’s environmentally conscious society, businesses are under increased scrutiny for their ecological impact. Transparency is a critical component that cannot be overlooked. By openly sharing their sustainability initiatives, businesses demonstrate a commitment to accountability and responsibility, fostering trust among stakeholders, including consumers, investors, and regulatory bodies. Moreover, transparency empowers consumers to make informed decisions, creating a powerful incentive for businesses to prioritise environmental stewardship.

Ultimately, sustainability is not just a short-term trend; it’s a long-term imperative. By proactively addressing environmental concerns, businesses can position themselves for long-term success and resilience in an environmentally conscious market. As businesses increasingly recognise the importance of their role in environmental stewardship, transparency will continue to be the cornerstone of meaningful and impactful sustainability practices.

What is Greenwashing?

Unfortunately Greenwashing is the opposite of transparency. It’s a term used to describe companies that use deceptive marketing tactics to appear more environmentally conscious than they actually are. By doing so, they attract consumers who are trying to live a more sustainable lifestyle but are being misled by the facade.

Greenwashing can take many forms, such as misleading labels, exaggerated environmental efforts, or vague and unsupported claims. For instance, a company may use eco-friendly colours, images of nature, or buzzwords like “natural” or “green” on their packaging to create the impression of eco-friendliness, even if their products or practices are not so environmentally safe. This causes a massive problem because it deceives well-meaning consumers who are trying to make environmentally conscious decisions. It also makes it difficult for people to make informed decisions about the products and services they buy.

For example, a big scandal involving fast-fashion giant H&M has recently revealed their greenwashing tactics.

Photo Credit: H&M

Their so-called recycling program “Close the Loop” claimed to send our old clothes and textiles to be recycled into new clothing. Instead, a tracker hidden in a piece of clothing, revealed that these textiles have been ending up in fashion landfills in third-world countries all along.

Photo Credit: H&M

There has been much media press about greenwashing, which is rife within the fashion industry. According to Vogue, a study by Changing Markets Foundation in 2022 reported that:

“NEARLY 60% OF GREEN CLAIMS MADE BY 12 MAJOR BRANDS IN THE UK AND EUROPE WERE UNSUBSTANTIATED OR MISLEADING. MEANWHILE, A 2020 EUROPEAN COMMISSION STUDY FOUND THAT  A quarter of misleading environmental claims CAME FROM THE FASHION INDUSTRY, SUGGESTING IT’S THE WORST CULPRIT WHEN IT COMES TO GREENWASHING”.

CHANGING MARKETS – REPORTED BY VOGUE

As a responsible consumer, it’s therefore important to look for legitimate certifications, third-party endorsements, or transparent information about a company’s environmental efforts to avoid being misled.

Related – HOW TO DE-CODE THE LABELS ON OUR BEAUTY PRODUCTS

Here’s what I discovered about these new terms:

What is Greenrinsing?

Greenrinsing refers to companies frequently changing their Environmental, Social, and Governance (ESG) targets (a set of standards measuring a business’s impact on society, the environment, and its transparency and accountability), before achieving them, creating scepticism about their commitment.

Coca-Cola is an example, with constantly shifting recycling targets and numerous risks outlined in its sustainability report. Between 2020 and 2022, the company dropped its target for using recycled packaging materials from 50 per cent by 2030 to 25 per cent. In its latest sustainability report, the brand cited forty-seven risks that could lead to the unfulfillment of the sustainability targets.

What is Greenshifting?

Greenshifting involves implying that consumers are at fault for environmental issues, shifting blame onto them. BP’s “Know your carbon footprint” campaign is an example. BP launched a carbon calculator and invited customers to share their pledges for reducing emissions. “The first step to reducing your emissions is to know where you stand,” one tweet reads., In reality, at that time, more than 96% of its annual expenditure was spent on oil and gas, the dominant cause of global warming, according to environmental charity ClientEarth.

Photo Credit: ClientEarth

What is Greencrowding?

Greencrowding involves blending into a group and adhering to the slowest adopter’s pace in terms of sustainability policies. The Alliance to End Plastic Waste (AEPW) serves as an illustration. This global alliance comprises 65 companies, with the stated goal of eradicating plastic waste and safeguarding the environment. Its members include major oil companies like ExxonMobil and Shell, plastic packaging firms such as Sealed Air, and well-known brands like PepsiCo.

Notably, eight of the top 20 contributors to single-use plastic waste are part of AEPW.

Photo Credit: https://maritime-executive.com/

Most of these members are also affiliated with the American Chemistry Council (ACC), an organization that lobbied to weaken the United Nations’ global plastic pollution treaty. Both AEPW and ACC focus primarily on plastic recycling and recovery, rather than addressing the problem at its source: production. Globally, only about nine percent of plastic is successfully recycled, and AEPW’s recycling targets are insufficient in the face of the worldwide plastic pollution crisis, with the alliance failing to meet its objectives.

Analysts at the think tank Planet Tracker, describe this type of greenwashing as “particularly clever” because it is easy to merge the large numbers associated with alliances on environmental issues with real impact.

What is Greenlighting?

Greenlighting, in a greenwashing context, occurs when a company emphasizes a green aspect of its operations or products to divert attention from environmentally harmful activities elsewhere. This is common in the car industry, where companies promote electric vehicles (EVs) despite a small percentage of total production.

For example, Toyota’s EVs represented only 0.2% of total sales in 2021, the lowest proportion out of the top 10 car manufacturers worldwide, yet they heavily market a sustainability campaign ‘Beyond Zero’ with captions such as ‘The future looks electric.’ Toyota’s website reads: “**Zero emissions** isn’t our destination. It’s another step in our electrification journey to overcome barriers and build a better future for all: beyond emissions, beyond restrictions, beyond expectations and beyond barriers.”

Photo Credit: Mark Yamauchi @ LinkedIn

What is Greenlabelling?

Greenlabelling involves marketing products as green or sustainable when closer examination reveals deception. Sometimes products are promoted in green packaging, with plant symbols or deceptive wording, causing consumers to infer their eco credentials. Other times, unsubstantiated claims are made or inferred on labelling or in adverts.

For example, Persil’s “Kinder to our planet” campaign claimed its new formulation with plant-based stain removers and recycled bottles, was eco-friendly, however, the UK Advertising Standards Authority (ASA) took action against Persil, saying the brand had failed to substantiate its environmental claims that the new product was more sustainable than its last.

Photo Credit: YouTube

What is Green hushing?

Green hushing is when a company or organisation chooses to downplay or keep quiet their positive environmental efforts, despite genuinely taking steps to be more environmentally friendly. In essence, it’s like keeping their green initiatives a secret.

This trend is becoming more and more popular, as experts believe that the crackdown on greenwashing is ushering in a new era of greenhushing. A new study from environmental consultancy South Pole has found that many companies are choosing to keep their climate goals quiet to avoid accusations of greenwashing. According to this report, around 25% of the surveyed 1,200 companies from 12 countries have chosen not to publicise their science-based net zero emissions targets, despite working hard towards them. 

There are several reasons why some genuinely eco-minded companies may choose to under-report their sustainability credentials – they may be deterred by the regulatory costs for verifying green credentials, whilst others fear facing allegations of unsubstantiated or misleading claims or of being asked for ever increasing amounts of data, which puts pressure on resources for smaller companies. 

Photo Credit: Alexander Taranenko

Others may wish to test their green credentials over a longer period before announcing their impact. This can shield them from scrutiny, including greenwashing accusations or regulatory fines. Although consumers are interested in knowing which brands are environmentally responsible, some companies are finding it easier to work towards their eco-goals without disclosing them.

This year’s Fashion Transparency Index is proof that green hushing is a spreading practice and fast. In fact, 94% of major fashion brands didn’t disclose what fuel is used in the manufacturing of their clothes, 99% didn’t disclose the number of workers in their supply chains being paid a living wage, and only 52% of brands disclosed their first-tier supplier lists. While it’s clear that much of the industry is lagging behind on transparency, this lack of disclosure is a concern.

The issue with greenwashing & greenhushing

As Greenwashing is such common practice among companies nowadays, it makes it difficult for the public to believe in their true environmental goals. It’s hard to determine whether they are doing it for the planet or just for their own profit. However, transparent steps and progress from companies can help to build a positive image and reputation. When it comes to communicating about sustainability with the public, companies need to find the right balance to avoid being seen as insincere.

could greenhushing hinder environmental progress?

While greenwashing is a challenge, some experts believe that greenhushing could also hinder environmental progress. If fewer brands publicly share their eco-friendly practices, others may be less motivated to adopt them. Furthermore, by remaining silent, companies miss the opportunity to drive industry-wide transformations and promote a culture of transparency that accelerates progress. Leaders, such as businesses, should set an example and share their experiences to inspire others and create peer pressure.

However, not everyone is convinced that greenhushing will become a significant issue in the fashion industry. The obligation not to greenwash is a major concern, and some claim that companies should greenhush if they are unsure they are not greenwashing.

Conversations about sustainability can often turn into a clash between realists and idealists. However, when companies stay silent, they may inadvertently lend credibility to climate sceptics, which can ultimately harm the planet. To make real environmental progress and secure our future, businesses should aim high, learn from their mistakes, and maintain open communication.

What’s being done to prevent greenwashing tactics?

Regulators and governments are starting to confront the growing issue of greenwashing. The UK is planning to further regulate the labelling of sustainable investment funds and scrutinise ‘environmental’ labelling on food, drink and toiletries.

The EU is set to introduce the Green Claims Directive, by 2024, which aims to make it more difficult for brands to get away with greenwashing in their marketing and prohibits companies from making vague, generic and unsubstantiated environmental claims. It includes clear criteria on how companies should prove their environmental claims and labels. This means that brands must provide scientific evidence to back up any environmental claims they make, including the use of buzzwords such as “sustainable”, “eco-friendly” and “responsible”, however some experts predict that this could lead to a new era of “greenhushing”.

brandalism

Consumers are increasingly stepping up to hold companies accountable for their deceptive tactics, and in some cases, they are resorting to legal action. The anti-advertising movement known as Brandalism, an activist artist collective established in 2012, has taken their protests to the streets. 

Photo Credit: Photo Credit: Campaign Live

They utilize subvertising techniques to modify and critique corporate advertisements, often by creating parodies or spoofs that replace ads in public spaces. This artistic activism aims to shine a spotlight on pressing political and social concerns, including consumerism and environmental issues.

The rise of greenhushing

The era of greenhushing has already started, especially within the fashion industry where companies are already taking steps to be more cautious about environmental claims. H&M, for instance, dropped its “Conscious” label after an investigation by the Netherlands Authority for Consumer & Markets, while ASOS removed its “Responsible Edit” before an investigation by the UK’s Competition and Markets Authority.

If all the brands who are currently practising greenwashing start dropping their fake sustainable efforts, greenhushing could, in fact, demonstrate just how much work is still required to create a more sustainable fashion industry.

How to avoid the green sheen

One effective way to avoid being misled by the green sheen is to scrutinise the claims made by large companies that claim to be environmentally friendly. These companies have the resources and influence to do much more to combat climate change, but their efforts are often just a drop in the ocean.

To make a difference, consider buying products and services from small, independent local businesses. Not only will this support local economies, but it will also give you a more personalised and enjoyable shopping experience. Plus, these businesses tend to be more transparent about their sustainability efforts. It’s also crucial to check the ethics and credentials of the products you’re purchasing. Trusted eco-labels like FairTrade, Global Organic Textile Standard, and EU Ecolabel can help you identify products with climate-friendly credentials.

In most of my articles, you’ll be able to find plenty of brand recommendations for pretty much anything you might need. Rest assured that I’ve already done my research on these brands’ practices, so you can be sure to buy from a business that is not greenwashing or greenhushing you!

I would love to hear about your experiences of greenwashing, so we can learn from you about the brands trying to deceive us! Please feel free to write in the comments box below.