Navigating Greenwashing in Marketing Communications

I recently attended  a thought-provoking panel discussion on Greenwashing at the stunning Crystalbrook Byron, organised by B Local Northern Rivers. Moderated by the ever inspiring Pru Chapman, the event centered around the recently published draft guidance by the Australian Competition & Consumer Commission (ACCC) to combat 'greenwashing' and ensure businesses maintain integrity in their environmental and sustainability claims. The guidance is a response to the alarming findings of the ACCC's greenwashing internet sweep, which revealed that 57 percent of the businesses reviewed were potentially misleading consumers with their environmental claims. The event panellists were Emma Rolley Senior Legal Counsel at SPELL, Pascale Rocher Area Director of Marketing from Crystalbrook and Luke Dean-Weymark , Co-Director at Compass Studio

Key Takeaways

1. The Impact of Greenwashing

Greenwashing involves promoting what a business claims to be doing for the environment without actually taking meaningful action. It's not always a deliberate act, but it can be equally damaging. The ACCC's recent sweep in October identified concerning claims in various sectors.

2. Fear of "Greenhushing"

Some brands avoid talking about their sustainability efforts due to fear of being accused of greenwashing, which can lead to missed opportunities for positive change. Consistent, transparent communication around sustainability efforts can help build trust with your community, helping mitigate suspicion of seemingly “sudden" announcements”.

3. Consumer Demand for Transparency

As consumers become increasingly environmentally conscious, they are demanding honesty and transparency from businesses and brands in return. Businesses should substantiate their claims with reliable scientific reports, transparent supply chain information, third-party certifications, or other evidence.

4. Compliance is Crucial

The ACCC plans to take enforcement action against businesses making false or misleading environmental claims to preserve consumer trust. The focus is on clear, reliable, and transparent claims.

5. Certification

In addition to B Corp, EarthCheck, a certification, consulting, and advisory group for sustainable destinations and tourism organisations, was recommended as a valuable resource for businesses seeking to bolster their sustainability efforts.

6. Gen Z and Sustainability

It was revealed that over 40 percent of consumers are now Gen Z, however nearly 90% of them don’t believe in brands' sustainability claims. And a similar number of them believe that companies are responsible for sustainability. This demographic's influence on consumer behaviour is significant.

7. Know your Suppliers and Partners

Seeking partnership with aligned brands, really talking to partners and suppliers about their position on ESG issues, sustainable practices and accreditation in order to create a clear roadmap to credible sustainability practices.

8. Think Sustainability Focused" Over "Sustainable”

The journey to becoming and maintaining sustainability is ever evolving. There is always more to learn, and we can always continue to improve - progress not perfection is the message to share. Shifting not only comms but thinking from the absolute of "sustainable" to ideal of "sustainability-focused" can better convey the ongoing nature of a company's sustainability efforts.

Useful Resources and References

• B Corp programs and tools such as the B Impact assessment and SDG action manager to discover where your business stands on the Sustainable Development Goals.

• ACCC Greenwashing Guide

• EarthCheck certification and website for risk management tools and resources

• Trace 's platform helps companies measure emissions, set targets and support you in reaching net zero. Community members benefit from a range of helpful tools and valuable events

• B Corp certified and human rights focused, Marque Lawyers provide a number of compelling and informative ESG focused articles within the quarterly impact statements on their site

In the spirit of progress over perfection, here’s what we will be doing at Grade to support our sustainability efforts:

1. Comms Review

Thoroughly reviewing all of our communications to ensure accuracy, transparency, and that they substantiate our sustainability claims and practices.

2. Making the Most of Memberships

Maintaining and strengthening how we work with certification partners like Trace. Making the most of these memberships by actively participating in their events and sharing valuable insights to stay updated on the latest sustainability trends and best practices.

3. Aligned Partnerships

Actively seeking partnerships with like-minded brands, and in the process, encouraging open discussions about our partners' and prospects' stances on environmental, social, and governance (ESG) issues, with the shared commitment to working towards a common goal.

4. Regular ESG Score Reviews

Reviewing our own (ESG) score on a quarterly basis through the sustainability scoring tool we developed in partnership with OpenESG.  We will measure our performance, identify areas for improvement and put plans in place to do so, and aim to keep our team and partners updated on our progress.

5. Utilising Resources and Leveraging Expertise

We recognise the importance of engaging with experts in the field of sustainability. By using resources like checklists we’ll aim to ensure that we not only comply with regulations set by the ACCC but also to improve clarity and transparency in our sustainability efforts.

Our approach involves being open to change and adopting a philosophy of continuous improvement rather than seeking perfection. By putting such measures in place, we aim to keep our company's mission and values top of mind.

For me, last night’s event demonstrated that combating greenwashing, fostering transparency, and promoting sustainability is truly a collective effort, fuelled by shared insights and open communication. If you’re a business or brand looking to engage with others equally dedicated to ethical and sustainable practices consider joining the B Local group for your area.

Abbey Batchelor, Partnerships Director at Grade