Greenwashing, a term coined in the 1980s refers to a marketing strategy that aims to deceive consumers by portraying a company’s product or service as friendly. As people become increasingly conscious of their impact, greenwashing has become prevalent in industries to increase sales stand out from competitors, and enhance brand image.
Companies often make claims such as promoting sustainability. Consumers must receive accurate information to make well-informed purchasing decisions. In Australia, New Zealand, United States, United Kingdom, and Europe, regulations prohibit businesses from misleading or deceiving consumers with penalties for non-compliance.
When determining if a product is ‘eco-friendly’, there are 4 key factors that come into play.
1. Materials
Products that use recycled or reclaimed materials, or materials sourced from natural resources are perceived to be more environmentally friendly than synthetic materials.
2. Manufacturing
Environmental Management Programs or equivalent local accreditations. Proof of participation in this scheme is required through current valid documentation.
3. Use
Products that are reusable and that replace single-use items such as plastic bags and bottles are seen to be a more environmentally responsible choice for promotional items.
4. Life cycle
Products that serve multiple purposes or that can be used for an extended period are often a preferred choice for people as they add more value long-term than products that break or cannot be used after a short amount of time. Products that can be repurposed (e.g., recycled) when they are no longer used or needed, or products that are compostable or recyclable, are a more environmentally conscious choice.
Common claims
- Composition Claims- contains no harmful chemicals,’ ‘non-toxic’, ‘plant-based’
- Production Claims- made with renewable energy, ‘contains recycled content’, ‘zero waste’
- Claims about the future
- Comparative claims- ‘better for the environment’, ‘uses 30% less energy than other leading brands
- Certification claims
At REDHOTBAM, we strive to be open and transparent with our clients. We know that by providing you with reliable information and resources, we can help you to responsibly promote our products and services to your clients.
- No implied claims through inference, overall impression, or use of imagery shall be misleading
- No use of vague comparative claims such as “better for the environment”
- We will not rely on anecdotal evidence, assumptions, and unsupported opinions to support claims
- Any claims that products are compostable will consider the availability of composting facilities for consumers likely to acquire the goods
- Claims must be made in appropriate context, for example, a product cannot claim to be BPA-free if it never has contained BPA in the first place.
Although current documentation on “Greenwashing” is mostly based on recommendations and guidelines, there are actual laws that penalize perceived misinformation to customers such as the ones mentioned at the start of this document. REDHOTBAM recognizes this and will implement initiatives that establish trust with our customers and add value to our business.