Green Washed

7/30/2019 Green Washed

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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.
http://www.greenwashingindex.com/ad_single.php?id=6092http://www.greenwashingindex.com/ad_single.php?id=6092


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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.
http://contexts.org/socimages/2009/03/14/greenwashing-bp-style/http://contexts.org/socimages/2009/03/14/greenwashing-bp-style/


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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.
http://www.cpsc.gov/http://www.businesspundit.com/the-top-25-greenwashed-products-in-america/http://www.denvermattress.com/http://www.denvermattress.com/http://www.businesspundit.com/the-top-25-greenwashed-products-in-america/http://www.cpsc.gov/


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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.
http://www.huggiespureandnatural.com/Default.aspxhttp://www.huggiespureandnatural.com/Default.aspx


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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.
http://www.seventhgeneration.com/Natural-Babyhttp://www.seventhgeneration.com/Natural-Baby


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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.
http://www.earthfriendlyshopping.com/?p=234http://www.earthfriendlyshopping.com/?p=234


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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.
http://www.greenwashingindex.com/ad_single.php?id=6097http://www.greenwashingindex.com/ad_single.php?id=6097


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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.
http://www.jiffynotes.com/a_study_guides/book_notes_add/emmc_0000_0002_0/emmc_0000_0002_0_00069.htmlhttp://www.jiffynotes.com/a_study_guides/book_notes_add/emmc_0000_0002_0/emmc_0000_0002_0_00069.html


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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.
http://www.consumersinternational.org/Templates/Internal.asp?NodeID=100639http://www.consumersinternational.org/Templates/Internal.asp?NodeID=100639


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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?

Documents

Green Washed