by Nextlife's Jeffrey Rosenholtz
It’s no secret that “Green” is becoming the new “Black.” Therefore, any company serious about long-term viability needs to begin today to transform their business into a more environmentally-friendly organization. And many are – businesses across the world are investing millions of dollars into recycling programs, energy savings initiatives, carbon footprint / greenhouse gas reductions, Lifecycle Assessments and other environmentally responsible programs. But, if their customers don’t know about it, it’s as if they haven’t done anything. This may seem a bit disingenuous, as they’re doing the right thing and the environmental benefits are still there, but if your customers switch to a competitor that touts their “greenness” and you don’t, you will lose the benefit of “Eco-Marketing.”
So what is Eco-Marketing exactly? Eco-Marketing is the art of being able to communicate your companies “green” successes in a responsible manner…one that is Accurate, Credible, and Transparent, or ACT, for short. While most companies have internal marketing departments that are capable of performing a wide range of marketing services, green marketing is very different and many businesses are not equipped to handle these types of programs. In fact, there can be serious consequences for making either intentional or inadvertent statements, or “Greenwashing,” about your companies contributions to the environment.
Because Greenwashing has the potential to abuse public trust, the FTC (Federal Trade Commission) has issued “Green Guidelines” that discuss the responsible marketing of Green claims in business. However, Greenwashing is still significant in the consumer goods marketplace. So, the FTC is currently updating and enhancing their rules and regulations with respect to Green claims (these updates rules are expected in October of this year). In the meantime, here are some examples of what the FTC considers Greenwashing:
Example 1: A package is labeled, “50% more recycled content than before.” The manufacturer increased the recycled content of its package from 2% recycled material to 3% recycled material. Although the claim is technically true, it is likely to convey the false impression that the advertiser has significantly increased the use of recycled material. In addition, environmental marketing claims that include a comparative statement must be presented in a manner that makes the basis for the comparison sufficiently clear to avoid consumer deception. The advertiser should be able to substantiate the comparison through verifiable scientific methodologies, preferably by a third party certifying organization.
Example 2: An advertiser notes that its shampoo bottle contains “20% more recycled content.” The claim in its context is ambiguous. Depending on contextual factors, it could be a comparison either to the advertiser’s immediately preceding product or to a competitor’s product. The advertiser should clarify the claim to make the basis for comparison clear, for example, by saying “20% more recycled content than our previous package.” Otherwise, the advertiser should be prepared to substantiate whatever comparison is conveyed to reasonable consumers.
Now, not all companies mean to “Greenwash” (I’m giving them the benefit of the doubt here). It’s just, due to their lack of expertise in the area of Eco-Marketing, they simply don’t know any better or truly believe in what their advertising. So, save yourself a lot of time and aggravation and look for a company that has experience and resources that specialize in Eco-Marketing. You’ll be glad you did and so will your customers.
