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June Free Report - Greenwashing

by Sangwook Ahn | 10-08-2022 21:28


Greenwashing

 

Have you heard of the phrase ¡°greenwashing¡± or ¡°green camouflage?¡± It is also known as ¡°green lies¡± or ¡°disguised environmentalism.¡± In the late 2000s, Terra Choice, a Canadian eco-friendly consulting firm, defined the 7 standards of greenwashing as acts that mislead consumers about the environmental practices of companies or the environmental benefits of products and services, or the act of hiding the factors that destroy the environment instead of highlighting only the positive impact.

 

Companies are shouting eco-friendly while in truth, it is very controversial. The disposable capsule coffee Green Mountain, sold by American Coffee company Keurig, has a triangle and the word recycling engraved on the surface. The company advertised that disposal plastic capsules can be recycled as plastic by removing the metal lid and emptying the coffee grounds. Consumers complaints followed as the task of emptying the capsule one by one to recycle was too much of a bother and annoying. In the end, Fair Trade Canada, after investigation, concluded that the advertisement was false or misleading, imposing a fine of $2.3 million. 


Nestle, a food and beverage company, held an event to recycle used aluminum coffee capsules from customers, saying ¡°do good for the environment and the happiness of the community.¡± However, Nestle uses 8000 tons of aluminum to produce coffee capsules and emits 8 tons of carbon dioxide per year in the process. It was criticized as greenwashing because it emphasized recycling and the environment while hiding this fact.

 

In the case of Adidas, it was criticized for advertising "Stan Smith" as an eco-friendly product, claiming that at least 50% of the shoes are recycled. No concrete evidence was provided and in September last year, the French Advertising Ethics Commission found the company guilty, saying it was not clear how it was recycled.

 

The lack of clear standards for what is eco-friendly and what is greenwashing is a cause of controversy. Therefore, I think the work to establish a real eco-friendly standard and guideline for companies is essential and necessary.