Here Josh Faulks, CEO, of the Australian Association of National Advertisers (AANA), issues a powerful call to the industry, asking advertisers to stop “ego marketing” and instead make customers central to their sustainability messaging in order to finally stamp out greenwashing and greenhushing.
Climate change has become an undeniable reality as we witness the devastating toll of extreme weather events around the world. From wildfires to floods and the hottest summer on record in the northern hemisphere, climate change is having a real impact on millions of lives. While the science behind climate change is clear, the conversation around sustainability is not always straightforward.
So, how are we actually doing? Spoiler: not great.
The Paris Agreement set out a goal to limit global temperature increases to 1.5 degrees Celsius above pre-industrial levels. But current policies predict a rise of 2.7 degrees by the end of the century. To put that into perspective, that means more extreme weather events, more melting ice caps, rising sea levels, displacement of billions, and even more widespread biodiversity loss. Not exactly the future we want to live in.
Here is the kicker: getting to a low-carbon, sustainable future means changing the way we all live and do business. Consumers, businesses, and governments need to work together to make it happen, and we need to talk about how we are doing that. But, here is where things get tricky: enter greenwashing and greenhushing.
Greenwashing vs. Greenhushing
Greenwashing is when brands make themselves look more eco-friendly than they actually are – misleading the public and eroding trust. On the flip side, greenhushing is when companies keep quiet about their sustainability efforts, scared of being called out or facing regulatory backlash. And it is happening more often than you would think.
I recently spoke with a senior executive at a major financial institution who said their company is doing incredible work to help businesses transition to a low-carbon future. But their legal and risk teams have told them to keep a low profile. They are not the only ones – too many companies are choosing to stay silent, even as consumers are more interested in sustainability than ever before.
In fact, a Simon-Kucher study showed that 64 per cent of consumers now rank sustainability as one of their top three purchasing decisions. But: 60 per cent of consumers, according to YouGov, don’t trust the green claims that brands are making. Plus, many buyers are hesitant to pay the premium price often attached to sustainable products.
The Paradox
So, we have two paradoxes here. First, consumers want to buy from eco-friendly brands, but they don’t trust the sustainability claims those brands are making. Second, consumers want to make sustainable choices, but they are not always ready to put their money where their mouth is when it comes to higher prices.
To fix this, brands need to stop ‘ego marketing’ – where companies pat themselves on the back for saving the planet, while expecting consumers to applaud from the sidelines. Instead, the conversation should be about how your products are going to help consumers live more sustainably. It is not just about what you’re doing; it is about what your product can do for them.
Building Trust
Transparency is critical if we want to build trust with consumers. Australia’s new mandatory climate reporting regime, which passed Parliament in September, is a step in the right direction. This will help shine a light on companies’ environmental practices, ensuring they are held accountable for their sustainability claims. It is also reassuring that ASIC plans to take a pragmatic approach to enforcing these new rules.
It is also important that businesses have clear standards and guidelines to give them confidence to make environmental claims. The AANA is currently in the final stages of reviewing its Environmental Claims Code to make sure it meets community standards and international best practice. The new code is due to be launched in coming months.
Our industry also needs to get our own house in order, so we are launching the Australian chapter of Ad Net Zero next month – a huge step towards inspiring industry-wide action and driving real, systemic change.
The marketing and media industry has a huge role to play in leading and influencing the behavioural change that is necessary to help transition to a more sustainable future.
The climate crisis is not going away, and neither is the need for these important conversations to happen. If we want to see real progress, we have to stamp out greenwashing and greenhushing, build trust with consumers, and empower businesses to proudly share the steps they are taking towards a sustainable future.
