In the 18 months since climate change pervaded mainstream consciousness, dozens of brands have been shown-up in Australia for making green claims that amount to little more than hot air.
Some brands which have felt the wrath of disgruntled consumers include Saab, Woolworths and LG Electronics. While The Greens in NSW have complained about Woolworths, the party has lodged a complaint against Saab to the ACCC. Last year LG was forced to pay up to $3.1m in rebates to consumers who bought 15,000 air conditioners with inaccurate efficiency rating labels.
Recently the Federal Government identified 12 bogus tree planting programs promoted by major corporations. After being swamped with consumer complaints, the Australian Competition and Consumer Commission (ACCC) has announced that it plans to scrutinise green marketing, but would not confirm to B&T which companies it was officially investigating.
ACCC Commissioner John Martin warns that flimsy “carbon footprint claims will be investigated whether a business is promoting their green motor vehicles, green flights or green toilet paper”.
Martin says the ACCC has been inundated with hundreds of complaints about unsubstantiated environmental claims.
“If there is a green edge to be found it will be exploited,” Martin says.
“Consumers across the spectrum are becoming more concerned and aware about the natural environment and hence businesses marketing goods with environmental characteristics will have a competitive advantage over businesses that do not.
“That’s good when it has a positive environmental outcome but in an increasing number of cases this doesn’t appear to be the case and we are concerned that things are really racing ahead.”
However, he points out that most businesses taking the climate change path are well intentioned and those “many hundreds” perceived to be in the wrong were possibly making honest mistakes.
Jerry Marsden, a leading Australian corporate responsibility commentator, says the ACCC’s tough new environmental stance sounds warning bells for the advertising industry as brands’ image creators.
Marsden says more agencies need to scrutinize clients about their carbon footprint promises to prevent sending out incorrect messages.
While the ACCC has not indicated that it will crack down on agencies driving false messages of sustainability, Marsden predicts that consumers will.
“In the future, advertisements not supported by solid and transparent evidence that companies promoting a sustainability strategy are what they say they are, will be thrown into disrepute very quickly along with the agencies behind it,” Marsden says.
Blair Palese, Climate Friendly marketing advisor, says the lack of a certified standard for measuring carbon emissions in Australia made the country “ripe” for greenwashing.
“Climate change is an extremely complex landscape and it’s constantly changing,” Palese says.
“There is an enormous amount of ambiguity because there is no definition for carbon neutral yet so what I say is carbon neutral and what someone else says can be two different things and consumers are having a really, really hard time deciding what’s good and what’s not.”
She says the introduction of a global standard for measuring carbon emissions by UK-based, non-profit outfit The Climate Group this month will help identify brands that were just “out to impress”.
“It will really make a difference because it sets a base line about what is credible and what is sceptical – it will create some clarity and all the junk will go out of business.”
The ACCC’s John Martin points out that whether there is global standard or not, the corporate watchdog can quickly identify which companies are flouting the system.
“We can look at how a company verifies its green credentials and the assurance system it has in place to underwire that and if we suspect that its claims are shallow and can’t be substantiated, we will take enforcement action against it.”
Martin says the process could be as simple as auditing a business’ bank statements.
For Rosemary Bissett, head of the National Australia Bank corporate social responsibility unit, says the bank does not heavily advertise its green credentials as it does not want to cash in on its environmental ethos.
She says the bank’s goal to be carbon neutral is aimed at encouraging staff and clients to follow suit rather than drive its bottom line. However, she says it is important that as a leading brand that it is seen to be living up to its promise.
“If you don’t walk the talk, it’s a strategy that risks your reputation and we wouldn’t want to do that, we want to be certain that we stand up to close examination,” Bissett says.
To ensure that it does, NAB has implemented a management committee to track its sustainability programs’ performance.
News Limited began implementing a sustainability program 17 years ago with strict sustainability targets, but has only begun promoting its environmental edge across its news platforms this year.
Stephen Browning, who heads up News Ltd’s sustainability program – One Degree – in Australia says: “This year, the entire News Corp businesses around the world had to deliver to New York the measurement of their carbon footprint and energy reduction programs and strategies for reach the targets our global head office had set.”
“We could just say we are carbon neutral but that is not going to make a difference to the planet, you need to change your behaviour and we realise that our influence is way bigger that what we can do as a company because the carbon footprint of our readers, subscribers and viewers is 14,000 times bigger than our own.”
