As the globe reaches an environmental 'tipping point', many companies have to embrace sustainable approaches to maximise future profits. So, many individuals are now looking for greener products and processes to chip away at the current impact global warming will have in our futures.
The Greta Thunberg's of the nation are attempting to pave a brighter and more efficient future for the planet through an 'eco-awakening'. Many individuals are querying the efforts we are putting into place to secure the future of our planet. However, many issues seem to be halting our efforts for a more optimistic future — one being greenwashing.
But what is greenwashing? This new term has been dropped into a few recent conversations and articles, and I know many of you are probably confused over what it entails. The European Commission states that greenwashing refers to "companies giving a false impression of their environmental impact or benefits."
Companies lying and withholding information about their impacts upon the globe has been a pressing issue with customers pushing it, as well as shareholders and employees. A classic greenwashing tactic that seems to be a growing issue is when a company advertises a product with environmentally positive benefits that only just meet existing law standards, or when a company doesn't improve its behaviour towards climate change but advertises its company as green.
Oil giant Shell is a clear example of this. As in 2008, Shell published an advert saying that "the challenge of the 21st century is to meet the growing need for energy in ways that are not only profitable but sustainable". However, the Advertising Standards Authority quickly removed the advert as it was 'misleading'. Around this period, Shell was supposedly "sustainable" with their new oil sand project but was starting a far more damaging method of producing energy. This issue is quite simply greenwashing in its more natural and socially destructive form.
With this emerging matter, social standards are being watched by many members of the public, which means that it's inevitable for legislation to be created around this pressing issue. In April 2021, the French Government introduced new legislation that increased the existing fine for misleading commercial practices to up to 80% of the promotional campaign costs related to the environment. France is paving the way for other countries to follow suit. Hopefully, soon.
Efforts have also been made by the International Financial Reporting Standards (IFRS) Foundation as they have proposed plans to allow for a more sustainable standards board with a mandate to "drive international consistency of sustainability-related disclosures." This plan should be launched in time for the crucial COP26 climate conference in November if completed relatively soon.
It's clear that saying that sticking a green label on a company does not mean that a company has done 'it's bit'. Greenwashing is commonly done through false stickers and labels. Even though this area is still a 'grey area' legally, laws will slowly but surely be integrated into the system to ensure that greenwashing is reduced or stopped entirely. The future needs to be greener - so let's hope that governments allow us to be greener and more sustainable in the upcoming future.
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