Risks and Risk Management

Presented by:David M. Scott, LEED®AP

GREENWASHING

We’re greener than green!

TerraChoice researchers surveyed more than 18,000 advertisements. The ones that made environmental claims were counted and described as a percentage of the total number of advertisements.

Source: Environmental Claims in Consumer Markets, TerraChoice Environmental Marketing, 2009

“Green” Advertisements on the Rise

Green·wash (grēn'wŏsh', -wôsh') – verb: the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service

Source: Scot Case, TerraChoice Environmental Marketing

“The Seven Sins of Greenwashing”

1. Sin of the Hidden Trade-Off

2. Sin of No Proof

3. Sin of Vagueness

4. Sin of Irrelevance

5. Sin of Fibbing

6. Sin of Lesser of Two Evils

7. Sin of Worshipping False Labels

1. The Sin of the Hidden Trade Off

Definition: Claiming a product is “green” based on one attribute

Definition: Claim that cannot be substantiated by readily accessible information or a reliable third party certification.

2. Sin of No Proof

Definition: Claim that is poorly defined or so broad that it is often misunderstood by the consumer.

3. Sin of Vagueness

Definition: Claim that may be truthful but is

unimportant or unhelpful for consumers seeking

environmentally preferable products.

4. Sin of Irrelevance

Definition: Claims are false.

5. Sin of Fibbing

Definition: Claim that may be true but distracts

consumer from greater environmental impacts of

category as a whole.

6. Sin of Lesser of Two Evils

Definition: Claim that gives the impression of a third party endorsement where no such label exists

Examples:

- Image that looks like an official seal of approval

7. Sin of Worshipping False Labels

Sins of the Seven Sins?

Greenwashing Litigation

Koh v. SC Johnson & Son, Inc., Case No. 09-00927 (N.D. Cal. 2009)

Greenwashing Litigation

Paduano v. American Honda Motor Co., Inc.,169 Cal. App.4th 1453 (Cal. App. 4th Dist. 2009)

Mendez v. Intel, Case No. CV-09-2889 (N.D. Cal. 2009)  

The FTC enforces Section 5 of the FTC Act, which generally prohibits "unfair or deceptive acts or practices," including advertising that is false or misleading. .”

The Federal Trade Commission

Crime and Punishment

3rd Party Verifications for Products

3rd Party Verifications for Products

http://www.columbusgreenspot.org/index.asp

We’re greener than green!