Green Or Gimmick? Are Eco-Friendly Products As Green As They Say?

Are eco-friendly products as green as they say? As environmental awareness grows, so does the allure of ‘green’ marketing, where products are often adorned with labels like “eco-friendly,” “sustainable,” or “green.” But how many of these claims hold true?

The rapid increase of green products and the growing number of environmentally aware consumers have created a breeding ground for greenwashing — a practice where companies falsely claim their products are environmentally friendly.

The Advertising Standards Council of India (ASCI), a voluntary, self-regulatory organisation of the advertising industry in India, processed complaints against 116 advertisements in 2021 for potential violation of its guidelines for advertisements making environmental or green claims.

In response to rising greenwashing, the ASCI has further tightened advertising standards with new guidelines, effective from February this year, to combat greenwashing in advertisements.

Simultaneously, the Indian government released draft guidelines for the prevention and regulation of greenwashing. The guidelines, that are yet to be formalised, recommend that vague terms such as ‘green’, ‘eco-friendly’, ‘eco-consciousness’, ‘good for the planet’, ‘cruelty-free’, and similar assertions are to be used only with adequate disclosures. All environmental claims shall be backed by verifiable evidence, the draft guidelines, by the Ministry of Consumer Affair’s Central Consumer Protection Authority, say.

How green is your product?

Greenwashing is a term that plays on the word ‘whitewashing’ and refers to the marketing tactic where companies falsely claim or exaggerate the environmental benefits of their products or services, often using vague or unsubstantiated terms such as “natural,” “eco-friendly,” or “green.” The term “greenwashing” was first coined by Jay Westerveld, an American environmentalist, in 1986. This practice often entices consumers with the allure of sustainability, despite a possible lack of genuine commitment or real environmental benefit. This can mislead consumers who are looking to make environmentally responsible choices.

The draft guidelines by the Indian government define greenwashing as “any deceptive or misleading practice, which includes concealing, omitting, or hiding relevant information, by exaggerating, making vague, false, or unsubstantiated environmental claims and use of misleading words, symbols, or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes”.

Divya Singhal, Professor and Chairperson at the Centre For Social Sensitivity and Action (CSSA) says. “Greenwashing is an issue that the world is facing today. Of course, as the marketing for green products in India or demand for organic products is expanding, this has also created a competitive environment where some companies exaggerate their environmental claims.”

“Many companies use generic terms such as ‘clean’, ‘green’, ‘eco-friendly’, ‘eco-conscious’, ‘good for the planet’, ‘minimal impact’, ‘cruelty-free’, and ‘carbon-neutral’ without adequate disclosures or evidence. This misleads consumers and undermines genuine sustainability efforts”, she adds.

Regulating green claims in advertisements

The ASCI’s guidelines for advertisements making environmental claims, effective February 15, 2024, aims to bring transparency and accountability and check greenwashing. The draft guidelines focus on various green claims, including positive impact on the environment, carbon offset and biodegradable claims.

The ASCI, upon releasing these guidelines, noted that it is common for products to make broad claims about being green, even though only a very small part of the product actually is.

Manisha Kapoor, CEO and Secretary-General of ASCI notes, “Environmental impact has become a critical factor in consumer decisions, often driving them to pay a premium for eco-friendly products. During a pilot, we identified several industries making green claims that were either untrue or misleading. This global movement towards authentic green claims led us to develop these guidelines for India.”

The ASCI guidelines underscore the necessity for advertisers to provide substantial evidence for claims that products or services are “environment friendly,” “eco-friendly,” “sustainable,” or “planet friendly” and aim to demonstrate how advertisers can make true, clear, evidence-based claims that consumers can understand and trust, while helping consumers make more informed choices.

The self-regulatory industry body’s guidelines also state that advertisers must clearly state whether an environmental claim relates to the entire product, just its packaging, or the service being offered.

Kapoor emphasised the impact of these guidelines: “Green claims are quite regularly used in advertising. One of the key challenges seen while making green claims is an overstatement of how green the product or service truly is. Misleading claims like ‘eco-friendly,’ ‘100% eco-friendly,’ ‘planet-friendly,’ and ‘sustainable’ are common, and potentially impact consumer decisions. The use of these terms, often lead the consumer to assume that the entire impact of that product or service is neutral or positive”.

She further highlighted, that the ASCI guidelines on greenwashing focus on ensuring that advertising restricts itself to claims supported by reliable scientific evidence or credible certifications from qualified bodies and does not overclaim the extent of the greenness of their products. This prevents misinformation from reaching consumers and allows them to make choices based on the correct information.

For claims about carbon offsets, the guidelines require that advertisers disclose if the promised reductions in emissions will take place two years or more in the future. Moreover, ads should not claim reductions in emissions that are legally mandated as if they were voluntary actions.

The guidelines also emphasise that green claims should reflect the “full life cycle” of the product or service being advertised. This means that advertisers should not focus on just one aspect of the product or service’s lifecycle in a way that could mislead consumers about its overall environmental impact.

“These draft guidelines on environmental/green claims are a crucial step to ensure that consumers who wish to support green brands have the correct information to make informed decisions. These guidelines set a standard for advertisers and aim to foster a culture of transparency and authenticity in advertising in the best interest of the consumers”, says Kapoor.

Shilpi Sharan, Managing Associate at S.S. RANA & Co., a corporate law firm in India, comments on the challenges arising from the increasing popularity of eco-friendly products. She notes, “Considering the growing demand for eco-friendly and sustainable products, there might be situations where businesses or brands start making false environmental claims.” She shares statistics on the situation of greenwashing by brands, saying, a study by ASCI reported that 79% of green claims made by organizations were exaggerated or misleading. According to a YouGov market research study, 71% of Indian consumers reported incidents of greenwashing, with 60% expressing concern. Furthermore, only 29% of consumers reported trusting organizations’ environmental claims.

Protecting consumers from greenwashing

India’s Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, issued draft guidelines in February this year, to combat deceptive or misleading practices in environmental claims made by advertisers, service providers, and product sellers. Engaging in greenwashing, which exaggerates or conceals environmental attributes while downplaying harmful aspects, is prohibited under these regulations.

Key provisions of these draft guidelines include the necessity for truthful, accurate, and verifiable environmental claims, backed by evidence and disclosures. Advertisements must avoid vague or ambiguous language and provide clear comparisons when making environmental assertions. Any visual or textual endorsement implying environmental responsibility must be substantiated by credible sources, say the draft guidelines and these sources shall be provided within the ad or through QR codes or URL links. Moreover, generic claims such as “clean,” “green,” “eco-friendly,” or “cruelty-free,” must be accompanied by qualifiers and substantiation to avoid misleading consumers.

The draft guidelines, once approved, will be applicable to all advertisements, service providers, product seller, advertiser, or an advertising agency or endorser whose service is availed for the advertisement of such goods or services.

The guidelines, however, won’t apply to advertisements or communication that is not specific to any product or service. So, for example, a company, in its mission statement can make statements about following sustainability principles. However, it cannot claim that all its products are “manufactured in sustainable manner”, without providing the required evidence and disclosures, clarifies the draft guideline document.

The greenwashing draft guidelines, once formalised, will fall under the Consumer Protection Act of 2019. “We expect the Greenwashing Guidelines under the Consumer Protection Act of 2019 to be officially announced soon,” Sharan remarks. “This will be a significant step forward in reinforcing these guidelines, ensuring adherence, and raising awareness about misleading environmental claims among consumers.”

Under the Consumer Protection Act of 2019, false advertising about the environmental quality of products is illegal. Businesses found making misleading environmental claims can be held accountable. Consumers impacted by such claims have the right to complain to consumer courts for justice and compensation.

As the government’s draft guidelines on greenwashing align with the ASCI’s guidelines, any advertisements that are not compliant with ASCI’s code can be sent to the Central Consumer Protection Authority (CCPA) for appropriate action under the Consumer Protection Act, 2019.

A joint press release from ASCI and the Department of Consumer Affairs, in March this year, noted, “ASCI’s code and associated guidelines in the area of advertising are harmonious with several guidelines enforced by the Central Consumer Protection Authority. In light of this alignment, the CCPA has recognised that any violation of ASCI’s code pertaining to misleading advertisements may potentially contravene the Consumer Protection Act of 2019 and its related guidelines.”

Green guidelines around the world

According to a 2021 survey by Ipsos, 64% of Indian consumers believe that stricter laws and regulations are necessary to ensure companies make genuine environmental claims.

Singhal of CSSA, who has authored a study on greenwashing awareness among Indian consumers and its impact consumption reflects on her 2020 study’s findings and emphasises the crucial role of consumer education. She notes that the research unveiled a significant issue where many advertisements in India only promote a superficial green image of organisations without substantial evidence. This often leads to claims that are shallow and imprecise, failing to hold up under scrutiny.

She continues, highlighting the importance of informed consumers: “We discovered that the more consumers understand greenwashing, the more cautious they become in their purchasing decisions.” She advocates for the implementation of nationwide initiatives similar to the ‘Jago Grahak Jago’ campaign by the Ministry of Consumer Affairs that aimed to spread awareness about consumer rights. According to her, these campaigns, which she suggests can be named as ‘Sachhai Green Ki’ or ‘Green Ka Sach’ (the truth about ‘green’), should aim to further educate the public about greenwashing and equip them with the tools to identify false claims.

This growing emphasis on informed consumer choice and transparent marketing practices is part of a broader global trend. Around the world, regulatory bodies are recognising the need for stringent measures to ensure that green marketing is both honest and substantiated.

In 2022, the European Union took significant strides with the Directive Empowering Consumers for the Green Transition, focusing on stringent measures against greenwashing. This directive specifically targets misleading claims by ensuring that environmental statements about products are verifiable, particularly emphasising that sustainability labels must be backed by reputable certification schemes or established by public authorities, and that vague environmental claims are strictly prohibited.

In the United States, guidelines established through the Federal Trade Commission’s Guides for the Use of Environmental Marketing Claims caution marketers against making broad, unqualified claims such as “environmentally friendly” or “eco-friendly,” and clarify that degradable products must decompose within a year after disposal unless they meet strict criteria.

Singhal while highlighting the importance of India’s efforts to bring in similar greenwashing guidelines states that while India’s approach is proactive, comparing it to the EU’s upcoming stringent regulations set for 2026 shows that there is still scope for India to enhance its transparency and enforcement strategies.

Compliance, a shared responsibility  

Ensuring compliance with guidelines designed to combat greenwashing is a multi-faceted effort, involving various stakeholders from corporate sectors to regulatory bodies and consumers themselves.

Vetriselvan, an advocate with the environmental organization Poovulagin Nanbargal, points out that the potential of these guidelines hinges on robust enforcement and adherence by all parties involved. He stresses that while the guidelines lay a foundation for honest advertising, the absence of stringent monitoring and penalties could allow greenwashing to persist.

“The responsibility to ensure compliance of these guidelines is a collective effort,” emphasises legal practitioner Sharan.

This shared responsibility extends into the legal arena, reinforcing the need for a strong legal framework to support these guidelines. Various legal mechanisms have already been established in India to curb misleading green claims by companies.

The Consumer Protection Act, 2019, is foundational, empowering a central authority to oversee issues related to unfair trade practices, including misleading environmental claims. This Act not only facilitates the regulation of greenwashing but also provides for significant penalties for non-compliance.

The Bureau of Indian Standards (BIS) also plays a crucial role in preventing greenwashing by setting standards for eco-labeling of products and services, which guide companies in making substantiated environmental claims.

In February 2023, Securities and Exchange Board of India (SEBI), the regulatory body for securities and commodity market in India, released guidelines for issuers of green debt securities, which are financial instruments aimed at funding environmentally supportive projects. These guidelines highlight the importance of ongoing monitoring of environmental impacts and ensuring strict compliance with the designated projects.

(Published under Creative Commons from Mongabay-India. Read the original article here)