green washed
TRANSCRIPT
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Introduction
What is Whitewashing?
Its defined as a coordinated attempt to hideunpleasant facts, especially in a politicalcontext.
What is Greenwashing?
Its Greenwashing when a company ororganization spends more time and money
claiming to be green through advertising andmarketing than actually implementing businesspractices that minimize environmental impact.Its whitewashing, but with a green brush.
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GREENWASHING
Greenwashing is the unjustifiedappropriation of environmental virtue by acompany, an industry, a government, apolitician or even a non-government
organization to create a pro-environmentalimage, sell a product or a policy, or to try andrehabilitate their standing with the public anddecision makers after being embroiled in
controversy.
Use of PR in a deceptive way.
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The term was coined by New Yorkenvironmentalist Jay Westervelt in a 1986essay regarding the hotel industrys practice.
The term is used when significantly moremoney or time has been spent advertisingbeing green, rather than spending resourceson environmentally sound practices.
Portrayed by changing the name or label ofthe product
E.g.: Earth Hour, Comcast ("PaperLESSisMORE"), Poland Spring (ecoshape bottle), AirbusA380
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What's wrong with Greenwashing?
Greenwashing is misleading
advertising legitimately labeled as"greenwashing" is dishonest, and that's aproblem.
Can result in consumer and regulatorcomplacency
creation of the illusion of environmental
sustainability has dire social consequences May also engender cynicism
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Tide Naturals Misleading???
According to P&Gs Annual Report:
About 80% of consumers in India200 million householdswash their laundry byhand. With their extremely limited laundry detergent budgets, most Indianconsumers settle for the lowest priced powders, which can irritate hands during andafter washing.
P&G launched Tide Naturals in India in December 2009. With unique ingredientsdeveloped at our Beijing Technical Center (this is where their detergent basedchemical formulas are decided), Tide Naturals balances cleaning and mildness at aprice 30% lower than regular Tide. It also dissolves in waterunlike mostcompetitive products in the low price range, which leave gritty materials in thewash water that can be harsh to hands. And its unique scent containing naturaloils offers an attractive benefit to Indian consumers that other low-cost detergentsdont.
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Time to unfold some Secrets????
Procter & Gamble (P&G) admitted that its low-priced detergent brandTide Naturals contains no "natural" ingredients (no natural oils).
In an affidavit submitted to the Madras High Court, P&G said that itsentry-level detergent brand contains only fragrances of lemon andchandan and no natural ingredients as suggested by its name.
It also confirmed that it adds synthetic compounds to bring out thefresh smell of lime and sandal
The Madras High Court on March 1 issued an order to P&G to modify itsadvertising (T.V. commercials) for Tide Naturals to clarify prominentlyto consumers that the detergent does not contain anything natural asits name suggests.
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Greenwashing Index
It is promoted by EnviroMedia Social Marketing with the help of University ofOregon School of Journalism and Communication.
Consumers rate the ad!!!
It generates a score based on consumers response based on certainstatements. High scores are undesirable (for the advertiser).
The ad misleads with:Words
Visuals and/or graphics
A green claim that is vague and cannot be proved
Overstates or exaggerates how green the product/company/service actually is
Leaves out or masks important information, making the green claim sound better
than it is
Goal: To educate consumers how to read an ad and encourage them todecide what they are seeing is greenwashing.
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Dont be Fooled
This is a report
A joint effort by EcoPledge.com and Earth Day Resources whichaccuses corporations of deceiving consumers with false claims of
environmental responsibility and all-natural wholesomeness.
The accused:
Kraft's Post Selects Cereals
The Council for Biotechnology Information Comanche Trace
Clairol
General Motors
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TerraChoice
Conducted a study: Almost all of environmental claims made forconsumer products are false or misleading.
Why are organisations attracted to engage in greenwashing?
Attempting to divert the attention of regulators and deflating pressurefor regulatory change
Seeking to persuade critics, such as non-government organisations,that they are both well-intentioned and have changed their ways
Seeking to expand market share at the expense of those rivals notinvolved in greenwashing
Reducing staff turnover and making it easier to attract staff in the first
placeMaking the company seem attractive for potential investors
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The Sins of Greenwashing
Scrutiny of environmental claims will be positiveonly as long as it manages to discouragegreenwashing while simultaneously encouragingmore and more green product innovation and
commercialization. Consumers are offering companies both a carrot
and a stick.
Consumers are creating a gradually greener
retail world.
Since 2009, the number of greener productshas gone up by 73%
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Findings from the Report
Consumers are changing the world for the better.
Proportion of sin-free products appears to have doubled in eachof the last two years (2007-2010)
Companies improve with practice.
Categories that have more experience with greening have 5times more sin-free products
Big Box stores are gentle green giants
Consumers can trust big box stores
Eco-labeling is an important solution, and sometimes partof the problem
Fake labels has increased dramatically
BPA + phthalate-related claims are skyrocketing
BPA (577%) & phthalate (2550%)
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The 7 Sins of Greenwashing
1) Sin of the HiddenTrade-off
2) Sin of No Proof
3) Sin of Vagueness
4) Sin of Irrelevance
5) Sin of Lesser of TwoEvils
6) Sin of Fibbing
7) Sin of Worshiping
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Percentages (7 Sins)
FINDINGS
1) Greenwashing is stilla significant problem(95% of greener
products commit one ormore of the 7 sins )2) But,greenwashing isdeclining (thenumber of sin-free
products appears tohave doubled ineach of the last twoyears)3) And, greenwashingis changing (trends insins)
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Companies Improve with Practice
FINDINGS
1) Growth continues in thelong-term (greener productofferings in the mature
categories increased by anaverage of 104.3%)2) Use of legitimatecertification increases withmaturity (averagefrequency of 28.8% in
mature categories whileonly 13.8% in immaturecategories)3) Greenwashing declineswith experience (5.1% sin-free products in maturecategories and 0.3% inimmature categories.
Tissue products are an
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Gentle Green Giants
Big box stores:22.8%
Specialty stores:11.5%
Green Boutiques:12.8%
Advantage:Combination of thescrutiny theyreceive and theirpower over their
supply chains
FINDINGS
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Eco-labeling (Problem + Solution)
FINDINGS
1) Legitimate greenstandards help fightgreenwashing (good eco-
labeling helps prevent (butdoesnt eliminate)greenwashing)2) False Eco-labeling isincreasing (32% greenerproducts carried fake
labels compared to 26.8%in 2009)3) False labels are a dime adozen
Environmental standards andcertification will be essential to
continuing progress in greener
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BPA + Phthalate
1) BPA-free 577% & Phthalate-free 2550%
SKYROCKETING CLAIMS
2) Two-thirds of these claimsappear on toys and baby products(44% BPA-free claim, 10%Phthalate-free claim)
WHATS A GREEN
MOM TO DO?
1) Support green productswhenever you can
2) Choose the green product
that offers the best proof
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FINDINGS
1) Very high rates of growth ofgreener product offerings(greener toy offerings 150%and green baby products 194%
2) More greenwashing (lessthan 1% are sin-free: nosingle sin-free green toy &only 0.8% sin-free green babyproducts)3) Lack of evidence (89% ofgreener baby toys andproducts commit this sin)
4) BPA and Phthalates
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The Top 25 Green washed Products inAmerica
1. Coal
2. Clothes
3. Bottled Water
4. Soft Drinks
5. Gas
6. Cars
7. Biofuel
8. Mattresses
9. Laundry Detergents
10. Pet Food
11. Paper Products
12. Disposable Diapers
13. Snacks
14. Household Cleaning Products
15. Hotels
16. Fur
17. Dairy
18. Tampons and Sanitary pads
19. Breakfast Cereals
20. Home Appliances
21. Personal Care and Beauty
22. Meat
23. Software
24. Toys
25. Air Travel
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House-hold cleaning products
FINDINGS
1) Different rates of growth
2) Greenwashing varies
3) Vagueness is the mostcommon problem
4) Good use of legitimatecertification
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DIY Building/ Construction Products
FINDINGS
1) Very strong greengrowth
2) Less greenwashing
3) Hidden trade-offs areunusually common
4) Improved use oflegitimate standards
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Consumer Electronics
FINDINGS
1) Still relatively slowgreen growth
2) High rate ofgreenwashing
3)False labels a particularproblem
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COAL
The term clean coal is more of a collectiveguilt assuager than an environmental fact.
Coal is not sustainable. The burning of coal
emits millions of tons of carbon dioxide intothe atmosphere every year.
Fact is, theres nothing clean or new aboutcoal.
Continuing to promote coal as a clean energysource is contemptible when you compare itwith wind, solar, water, and hydrogen powermethods.
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CLOTHES
The FTC charged bamboo clothingmanufacturers with making falsegreen claims.
The manufacturers advertised theirrayon clothing as bamboo fiberclothing (rayon consists of fibers
processed with toxic carbondisulfide. It is bamboo fibers drug-addled step-cousin).
They also made suspicious claimsabout manufacturing their clothingusing an environmentally friendlyprocess that retains the natural
antimicrobial properties of thebamboo plant and (being)biodegradable,according to the FTC.
Also in 2009, Banana Republic launchedan Its Easy Being Green promotion
that requires using their reusable bag toget 10 percent off your purchases.
Not always so, and especially not whenBanana Republic is manufacturing
thousands of bags made fromconventional cotton that takestons of pesticides to produce.
BR also required consumers to buy a newbag to be part of the promotion, denying
smart eco-minded shoppers whobrought their own.
http://www.ftc.gov/opa/2009/08/bamboo.shtmhttp://www.panna.org/documents/conventionalCotton.dv.htmlhttp://www.greenwashingindex.com/ad_single.php?id=5271http://www.greenwashingindex.com/ad_single.php?id=5271http://www.panna.org/documents/conventionalCotton.dv.htmlhttp://www.ftc.gov/opa/2009/08/bamboo.shtm -
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Bottled water Industry giants like Nestl and Fiji, are lining
up for a fresh coat of green to stay in the eco-minded dollar game.
Nestls repeated claims that bottled water isthe most environmentally responsible
consumer product in the world have garneredcomplaints filed under the Canadian Code ofAdvertising Standards by the Friends of theEarth Canada, the Polaris Institute andEcojustice.
FIJI water, the most-imported brand in America, deserves a Shady Water Company award.
http://www.greenwashingindex.com/ad_single.php?id=6117http://www.greenwashingindex.com/ad_single.php?id=2598http://www.polarisinstitute.org/groups_challenge_nestl%C3%A9%E2%80%99s_bottled_water_greenwashinghttp://motherjones.com/politics/2009/09/fiji-spin-bottlehttp://motherjones.com/politics/2009/09/fiji-spin-bottlehttp://www.polarisinstitute.org/groups_challenge_nestl%C3%A9%E2%80%99s_bottled_water_greenwashinghttp://www.greenwashingindex.com/ad_single.php?id=2598http://www.greenwashingindex.com/ad_single.php?id=6117 -
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For one, the island of Fijis military junta protectsthe brand at the expense of Fijian citizens.
Most people in Fiji dont have safe drinking water,thanks to FIJIs habit of exporting it.
Typhoid outbreaks are common on the island.
The company uses plastic made in Chinese diesel-powered plants to produce its thick rectangularbottles.
Yet Americansincluding celebrities and BarackObamacontinue to guzzle the stuff, thanks in partto pretty packaging and a $5 million Fiji Greenmarketing campaign.
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Gas
Energy companies are some of the worstoffenders in the green sheen game.
BPs redesigned logo is one notorious example.The green stylized flower suggests that BP is acompany that is both environmentally friendlyand responsible.
Even as they claim to be concerned aboutemissionsthey speak frequently about theirefforts to develop clean energy sourcestheycontinue to pull out of renewable research,even their own previous investments inrenewable energy.
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Mattresses
The mattress industry is filled with confusing terms likeeco-friendly, natural and organic. One companyeven claims that on their mattresses, you sleep closer tonature.
Chemical-free mattresses might be a pipe dream, sincethe U.S. Consumer Product Safety Commission institutedthe national open-flame mattress flammability standardthat went into effect in 2007.
By law, you have to sleep on something flame retardant.Most companies accomplish this with chemicals, thoughsome use rayon-based fiber pads as a flame barrier.
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Mattresses
Some companies use cotton, soy and bamboo-basedfaoms in their green mattress lines. Cotton, however, isthe worlds most pesticide-intensive crop. It also requiresheavy irrigation, taxing local water supplies.
Textiles such as rayon and bamboo, while created fromrenewable resources, are pulped and imbued withhazardous chemicals that include caustic soda andsulphuric acid.
The process impacts the sensitive regions where thesetrees and grasses are harvested, not to mention theworkers exposed to those substances.
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Disposable Diapers Huggies Pure and Natural line
goes invites consumers todiscover the pure bliss of a
diaper that includes gentle,natural materials.
But parents may be too sleep-deprived to see whats lurkingbeyond the leaves and smilingbaby on the package.
Although organic cotton isincluded in the outer cover,the actual organic contentremains a mystery.
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Disposable Diapers
the diapers also dont include organic cottonon the inside surface of the diaper, whichactually touches the babys skin.
True eco-companies are going big by using100% and using unbleached cotton in theirbaby products. Huggies also does not sell asingle biodegradable diaper.
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dairy
Dairy products fall victim to the all-naturalcurse. Those natural products may not containpesticides, but the cows behind them maywell dine on pesticide-laden, genetically modified
crud for feed. One of the most famous cases of dairy
greenwashing involves Dean Foods, the countryslargest dairy company. It pulled green bait-and-switch its Silk and Horizon-brand products.
Dean downgraded several well-establishedHorizon products from organic to natural, anunregulated, relatively meaningless term.
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dairy
Dean didnt inform major retailers of theswitch. Instead, like a GREEN NINJA, theystealthily removed the word organic fromthe packaging without making any other
changes, prompting national retailers likeTarget, to mislabel non-organic dairy products as organic.
Habituated consumers continued to pay
extra for products that used to be organic.
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cereals
Cereal boxes are tattooed with claims ofvitamins, antioxidants and fiber. But thoseVitamin C-packed berries may also containpesticide residue.
Cereal maker Kraft, for example, produces aNatural Advantage line of cereal thatincludes antioxidants and natural fiber.
Yet the company uses genetically modifiedcorn, potatoes, and soy in its morning treats,as well as milk products from rBGH (growthhormone)-treated cows.
http://www.sierraclub.org/biotech/kraft.asphttp://www.businesspundit.com/the-top-25-greenwashed-products-in-america/http://www.businesspundit.com/the-top-25-greenwashed-products-in-america/http://www.sierraclub.org/biotech/kraft.asp -
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Home APPLIANCES
In a recent campaign, GE claimed that they can reducea familys energy use and greenhouse gas emissionsthrough GE technologies and household appliances.
For some reason, GE didnt share how much theirappliances contribute to reducing monthly energy costsper home, or how many of their appliances are neededto see a measurable reduction.
And while the image of a tree hugging a house in theircommercial plays into a consumers eco-conscience,
that tree isnt saying if GEs manufacturing operationsare helping to deliver a carbon-neutralized appliance toyour home.
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Personal Careand Beauty
Take Clairols
Herbal Essences. Ithas claimed a trulyorganic experiencein the past. Butlauryl sulfate,
propylene glycoland D&C red no. 33arent really thatorganic.
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SOFTWARE
IT spending isnt what it was 10 years ago. As aresult, many software vendors are trying on a coatof green to bolster their reputations. Bigcompanies like Microsoft and Oracle are releasing
products to help oil, gas, and utilities companiescut power usage and estimate emissions.
Last year, Microsoft added some minor power-saving features to its new Windows 7, including alow-light setting for your monitor. At the same
time, the company pushed users to buy a newcomputer to run Windows 7
No wonder Windows 7 didnt win Microsoft anygreen awards.
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Toys
Parents are willing to spend more on items that they feel willkeep lead paint and cadmium out of their childs toy box.Widespread toy recalls in Europe and the U.S. have alsopushed toymakers into greening their operations.
Toy giant Toys R Us recently tried to cash in on increased
awareness thing without actually detoxing their toys. Theyinvited customers to buy Toys R Us-branded reusableshopping bags. They also changed their signature R toinclude a recycle symbol
a store-branded reusable bag isnt what parents are lookingfor. They want toys that wont poison their kids, harm theworkers making them, or further damage the planet.
http://www.nytimes.com/2007/08/02/business/02toy.html?_r=2http://abcnews.go.com/Health/WellnessNews/wireStory?id=9527916http://abcnews.go.com/Health/WellnessNews/wireStory?id=9527916http://www.nytimes.com/2007/08/02/business/02toy.html?_r=2 -
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We are
sittingonmaybe
1,000Bhopals
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Are companies resistant to adoptingcleaner, greener processes?
Large industries more or less quiteunderstand it makes business sense
At first, they are quite resistant, then theysay, it may be good PR
Once they see savings, they are in.
Sustainability has moved from being aregulatory issue to a management issue to a
business issue (opportunities) to a corestrategic issue.
InnovationCII-ITC Centre of Excellence in SustainableDevelopment
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Can sustainability be a bargaining chip forhigher prices, are there takers?
the market in Indias not so mature right now.We only see it in some of the retail shops,you know, where they have these organicsections
consumer awareness has to grow,consumption has to change, its a longprocess
sustainability mark, a label, over a period oftime, one which companies can apply forvoluntarily, which aware consumers will buy
CII-ITC Centre of Excellence in SustainableDevelopment
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Are companies resistant to adoptingcleaner, greener processes?
Government endorsement will be veryimportant here, it must enable all this tohappen. It tried an Ecomark scheme 15-16years ago, an administratively cumbersome
scheme, it didnt succeed. It was like an on-off switch, no grading, it wasnt like acompany could go up after being at grade 1or 2 for a period of time
CII-ITC Centre of Excellence in
Sustainable Development
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advertising for environmentally-consciousproducts.
over a period of time is as a company howam I generating social value, sustainablestakeholder value. There are no metrics tomeasure how, unlike financial value, where
theres the PE ratio, debt equity ratio, marketcap and such.
Ads are a good beginning but shouldnt be allPR. We have to make sure any kind ofstatements from the company should bebacked by credible data.
CII-ITC Centre of Excellence inSustainable Development
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benefits of sustainability
New markets - such as the ones for GodrejChotukool
ITCs farm forestry initiative, e-choupal.
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What about greenwashing in India??CASE 1: HCL (2007)
Shame HCL protest by Greenpeace activists at thecompanys headquarters in Noida
Demand: Company make clear and bindingcommitments to green its operations. Stop using
hazardous chemicals in its products Companys claim on its website: striving to phase
out PVC and BFRs, once economically viable technicalsolutions exist
This is a clear case of one of the 7 sins ofgreenwashing
Desktop sales of HCL lead to distribution of severalmillion kilos of plastic and electronic components thatcontained PVC, lead and BFRs. These toxins can cause
severe health problems
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CASE 2: Coca Cola (2007)
Companys claim: To protect rivers on four continents
Charges by India Resource Center: Release of untreatedwastewater into surrounding agricultural fields and a canal thatfeeds into the Ganges River in the northern Indian state of UttarPradesh
In 2003 Central Pollution Board of India found that sludge atCoca Cola factories contained high level of toxic heavy metalslike lead, cadmium and chromium
Coca cola pledged to spend $20 million to conserve seven ofthe worlds most critical river basins.
But does it really mean green to the environment?