Greenwashing Guidelines: New Rules to Prevent Misleading Environmental Claims

Why Greenwashing in the News?

The Indian government has introduced new guidelines aimed at curbing false and misleading claims about the environmental benefits of products.

Issued by the Central Consumer Protection Authority (CCPA), these guidelines require companies to provide scientific evidence to back up their environmental claims. The move is part of a broader initiative to address deceptive advertising, complementing the existing 2022 Guidelines for Preventing Misleading Advertisements.

Key Topics in This Article:

• Definition and understanding of greenwashing.
• Key advertising guidelines to prevent greenwashing.
• Way Forward

What is Greenwashing?

Greenwashing refers to the practice of companies, organizations, or even governments making exaggerated or unverifiable claims about their environmental or climate-friendly actions. This tactic creates a false impression of environmental responsibility, misleading consumers.

Wider Implications: Greenwashing misrepresents actual environmental progress, potentially worsening climate issues by encouraging irresponsible behavior.

Examples:

• The 2015 Volkswagen emissions scandal is a notable example where the company manipulated emissions tests to appear eco-friendly.
• Other major corporations such as Shell, BP, and Coca-Cola have also been accused of misleading environmental claims.
• Even governments have been implicated in overstating the carbon-absorbing capacity of forests or exaggerating the impact of environmental regulations.
• Practices like carbon trading and offsetting have also come under scrutiny for lacking scientific rigor and credibility.

Global Efforts to Combat Greenwashing

• In response to the growing prevalence of greenwashing, UN Secretary-General António Guterres has called for a “zero-tolerance” policy.
• A high-level expert group was formed to tackle greenwashing, focusing on non-state actors like corporations and financial institutions. Key recommendations include:

• • Banning new investments in fossil fuels.
  • Setting short-term emission reduction goals.
  • Stopping deforestation.
  • Reducing reliance on carbon offsets in the initial phases of pursuing net-zero commitments.

Why is Greenwashing Common?

1. Complexity: There are numerous products and processes that can claim to reduce emissions, making it difficult to monitor and verify every claim.

1. Lack of Regulation: Many areas lack standardized regulations and processes for measuring, reporting, and verifying environmental claims.
2. Proliferation of Unverified Certifications: A large number of organizations offering certifications and expertise in sustainability have emerged, but many lack the necessary integrity or scientific rigor, allowing companies to present an exaggerated green image.

Way Forward:

The guidelines emphasize the need for transparent, honest, and scientifically supported environmental claims.

Here are the key principles outlined:

Key Advertising Guidelines for Preventing Greenwashing:

The Indian government began drafting these guidelines in November 2023. After multiple meetings and public consultations, the final guidelines were released.

• Greenwashing in Advertising: Defined

Greenwashing is described as any deceptive or misleading practice where companies make vague, exaggerated, or concealed claims about the environmental benefits of a product or service. This can involve misleading words, symbols, or imagery that highlight positive environmental attributes while hiding negative aspects.

• Allowance for Hyperbole

The guidelines allow the use of common advertising exaggerations, like “obvious hyperboles” or “puffery,” as long as they don’t deceive consumers. For example, broad claims such as “growth based on sustainable principles” might be acceptable, but specific claims like “all products are sustainably manufactured” must be backed by evidence.

• Use of Generic Environmental Terms

Terms like “green,” “eco-friendly,” “clean,” and “sustainable” can only be used if companies provide supporting evidence. Advertisements must ensure that these terms are not vague and are accompanied by accurate qualifiers and clear disclosures.

• Clarification of Technical Terms

Companies must clearly explain technical terms like “environmental impact assessment” or “greenhouse gas emissions” in a way that is easily understood by consumers. This ensures that consumers can make informed decisions.

• Requirements for Specific Environmental Claims

Claims such as “compostable,” “non-toxic,” or “plastic-free” must be supported by reliable scientific evidence, certifications, or third-party verification. This helps ensure that environmental claims are credible and trustworthy.

• Applicability of the Guidelines

The guidelines apply to all environmental claims made by manufacturers, service providers, and advertisers. Advertising agencies and endorsers involved in promoting these products are also subject to these rules. Greenwashing or misleading environmental claims are strictly prohibited under these guidelines.

These new guidelines mark a significant step towards ensuring greater transparency and accountability in environmental claims, promoting honest communication about products’ sustainability credentials.

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