What CMO (Chief Marketing Officer) should know about #Greenwashing?
This article will illustrate three lessons to assist CMOs to prevent from greenwashing on the market (intentional greenwashing will not be within the scope for sure):
1.Why companies should avoid/stop greenwashing?
2.What are the processes to prevent greenwashing from happening? Based on true experiences.
1.Why companies should avoid/stop greenwashing?
As a Chief Marketing Officer (CMO), it is important to be aware of the issue of greenwashing and to take steps to avoid it. Here are a few things that a CMO should know about greenwashing:
#1 It undermines trust: Greenwashing can erode trust in a company and its products. If consumers feel that they have been misled about a product's environmental benefits, they may be less likely to trust the company in the future.
#2 It can be illegal: In some cases, greenwashing can be considered false or deceptive advertising, which is illegal in many jurisdictions.
#3 It can damage a company's reputation: Greenwashing can damage a company's reputation and negatively impact its brand. If a company is caught making false or misleading claims about its environmental performance, it can seriously damage its credibility and public image.
#4 It can be avoided: Greenwashing can be avoided by being transparent and accountable in environmental claims, providing clear, specific information about the environmental impact of products and services, and being willing to provide evidence to back up claims.
#5 It is important to consider the full lifecycle of a product: When making environmental claims, it is important to consider the full lifecycle of a product, including its production, transportation, use, and disposal.
#6 Third-party certifications can be helpful: Third-party certifications, such as the Environmental Protection Agency's Energy Star program or the Forest Stewardship Council, can provide assurance that a product has been independently verified as being environmentally friendly.
As a CMO, it is important to be aware of the potential risks of greenwashing and to take steps to avoid it. By being transparent and accountable in environmental claims and considering the full lifecycle of products, companies can build trust with consumers and contribute to genuine progress on environmental issues.
2.What are the processes to prevent greenwashing from happening? Based on true experiences.
Greenwashing is the act of making false or misleading claims about the environmental benefits of a product or service. To avoid greenwashing, companies can follow these steps:
#1 Set clear and specific environmental goals: This helps ensure that the company is taking concrete steps towards sustainability, rather than making vague or misleading claims.The goals are better with quantifiable approach.
#2 Conduct a thorough environmental analysis: This involves examining the company's entire value chain, from raw materials to disposal, to identify areas where it can reduce its environmental impact. Again, try to record those material and quantifiable data if possible.
#3 Communicate transparently: Companies should be open and honest about their environmental practices, including any challenges (or even goals and opportunities) they face. Consumers will be happy and even more loyal to the products which deliver goals for tomorrow, they don't ask for "perfect" product but appreciate "honest" ones.
#4 Use eco-friendly products and materials: Companies should use environmentally friendly products and materials whenever possible, and should be able to clearly communicate the environmental benefits of these products to consumers. You should also provide third-party verification of their claims (and update them on a regularly basis, timeless is key; just don't provide 10-year ago verifications.)
#5 Continuously improve: Companies should regularly review and assess their environmental practices and set new goals to continue reducing their impact on the environment.
As you may see, the key point is to act first then say it, not the opposite way around.
by ESG Advocate Chen Chung Tan
7th Jan 2023
