Be Precise, Honest & Have Data to Backup Your Sustainability Claims.

Did you know more than 7 in 10 North American companies said their company has engaged in corporate greenwashing? That’s according to a 2022 Harris Poll for Google Cloud involving 1,491 executives.

Greenwashing is the practice of promoting products or operations as environmentally and climate friendly to give the impression that a company is making strides to become more sustainable – but they’re actually not.

For example, a product is labeled as “recyclable”, but only a small part of the product can be recycled, or the odds of the product being recycled are slim to none (minimal availability of recycling facilities, complexity of recycling, costs, etc.).

In many cases, only one small area of an operation is truly sustainable, but the negative environmental impact of all other areas far outweighs the positive.

In addition to the reputational damage caused by deceiving the public, greenwashing can have legal consequences. In California, for example, state law prohibits recycling claims on packaging if the likelihood of recyclability doesn’t meet a certain test, and unsubstantiated green claims can lead to litigation and damage to your brand. Just ask wellness athleisure giant Lululemon. 

A class-action lawsuit was filed in a Florida against Lululemon earlier this year, Gyani v. Lululemon Athletica Inc., alleging that the apparel brand’s “Be Planet” initiative was “unfair, false, deceptive, and misleading to reasonable consumers as they portray Lululemon as something it is not.” The complaint raises claims under the FL Deceptive and Unfair Practices Act, the FL Advertising Act and unjust enrichment re alleged false greenhouse gas emission claims by the company. The lawsuit seeks actual, compensatory and punitive damages for the to-be-certified class. 

Additionally, greenwashing can have an unfair impact on healthy competition, where the greenwasher avoids the cost but reaps the benefit in the marketplace. 

If these statements are included in financial filings, you also run the risk of securities fraud and investor protection law issues.

Organizations can avoid greenwashing accusations by making specific, measurable claims that can be backed up with data, and avoiding meaningless terms like “eco-friendly” or “green” or “natural.”

Consider the full picture when developing your brand campaigns and initiatives, not just one part of the picture that suits a certain narrative.

Be clear and transparent about your goals, progress, and challenges along the journey to sustainability. Consumers love a story. 

Have data to backup your claims and consider certification from neutral third parties to validate your claims.

Of course, it all comes back to the centuries-old principle of truth in advertising. 

Just be honest. When you operate and communicate with authenticity and integrity, you will open up so many doors that you didn’t know where possible. 

Did you know more than 7 in 10 North American companies said their company has engaged in corporate greenwashing? That’s according to a 2022 Harris Poll for Google Cloud involving 1,491 executives.

Greenwashing is the practice of promoting products or operations as environmentally and climate friendly to give the impression that a company is making strides to become more sustainable – but they’re actually not.

For example, a product is labeled as “recyclable”, but only a small part of the product can be recycled, or the odds of the product being recycled are slim to none (minimal availability of recycling facilities, complexity of recycling, etc.).

In addition to the reputational damage caused by deceiving the public, greenwashing can have legal consequences. 

In California, for example, state law prohibits recycling claims on packaging if the likelihood of recyclability doesn’t meet a certain test. 

Unsubstantiated green claims can lead to litigation and damage to your brand. Just ask wellness athleisure giant Lululemon. 

A class-action lawsuit was filed in Florida against Lululemon earlier this year, Gyani v. Lululemon Athletica Inc., alleging that the apparel brand’s “Be Planet” initiative was “unfair, false, deceptive, and misleading toreasonable consumers as they portray Lululemon as something it is not.” 

The complaint raises claims under the FL Deceptive and Unfair Practices Act, the FL Advertising Act and unjust enrichment, re alleged false greenhouse gas emission claims by the company. The lawsuit seeks actual, compensatory and punitive damages for the to-be-certified class. 

Additionally, greenwashing can have an unfair impact on healthy competition, where the greenwasher avoids the cost but reaps the benefit in the marketplace. 

If these statements are included in financial filings, you also run the risk of securities fraud and investor protection law issues.

Organizations can avoid greenwashing accusations by making specific, measurable claims that can be backed up with data, and avoiding meaningless terms like “eco-friendly” or “green” or “natural.”

Consider the full picture when developing your brand campaigns and initiatives, not just one part of the picture that suits a certain narrative.

Be clear and transparent about your goals, progress, and challenges along the journey to sustainability. Consumers love a story. 

Have data to backup your claims and consider certification from neutral third parties to validate your claims.

Of course, it all comes back to the centuries-old principle of truth in advertising.  

Just be honest. When you operate and communicate with authenticity and integrity, you will open up so many doors that you didn’t know where possible. 

No aspect of this advertisement has been approved by the Supreme Court of New Jersey.