Sustainability Series: Greenwashing -The most important term you may not have heard of
This article is part one in a series on sustainability. Follow Shriram for more.
The world has finally woken up to the importance of sustainability.
ESG is the latest buzzword. These Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. The interest in ESG has skyrocketed in the past 2 years, as google trends show:
But let’s be honest, achieving sustainability in the supply chain and consumer facing businesses is a major challenge. If consumers truly demand it, companies are forced to change their practices to comply. This involves overhauling manufacturing processes, modifying sourcing and distribution, all at an increased cost and reduced profit margins. In the short-term, it is expensive, in the long-term, it pays off.
Some businesses have come up with an ingenious solution to combat this short-term pain. What if they could convince you that a practice is sustainable, without actually incurring extra cost (or in some cases even charging you more!). That would be perfect for the business (and as you might have guessed.. terrible for the environment)
This is where Greenwashing comes in. Let’s find out more:
Basically, it’s an attempt to convince you that the business is saving the world, when in fact, it is doing exactly the opposite!
What are some examples of Greenwashing?
Example 1: Big Business Greenwashing
BP plc is a British multinational oil and gas company headquartered in London, England. It is one of the world’s seven oil and gas “supermajors”.
A company like BP, has faced public criticism over their handling of manmade oil disasters like Deepwater Horizon, or their investments in polluting oil and gas projects.
Instead of focusing on reducing their carbon footprint, the company spent $200 Million on a blitz campaign to rebrand as a “green” and sustainable company. This is the textbook definition of greenwashing.
Fancy ad campaigns or green logos might look great, but they do nothing for the environment.
In other cases, Companies involved in greenwashing behaviour might make claims that their products are from recycled materials or have energy-saving benefits. In many cases, that’s simply untrue, or the truth is embellished to sound better.
Example 2: Consumer Greenwashing
Have you ever been told to switch paper straws with Plastic Straws at a restaurant? If yes, which option would you choose?
I put my twitter audience to the test:
And the results were not so surprising.
We have all been brainwashed into thinking that paper straws are better than plastic straws. Surprise surprise.. they are not!
Paper straws are worse for the environment. Shocking right?
Paper is biodegradable yes, therefore it can be thrown into a landfill. But the process of manufacturing paper causes more pollution vs manufacturing of plastic, and also leads to deforestation and loss of animal habitats.
There is no perfect solution but the best way is to not use straws at all!
Lesson: Ultimately the best way to be sustainable is to reduce consumption, not replace it with something else. Further, as consumers we need to question what businesses are telling us, and call them out if they indulge in greenwashing practices.
There is already some great content on greenwashing out there, so i’m just going to the easy bit and link it for you:
https://medium.com/disruptive-design/what-is-greenwashing-how-to-spot-it-and-stop-it-c44f3d130d5
