World Federation of Advertisers releases six principles to help marketers avoid “greenwashing”

The question

How could the World Federation of Advertisers’ principles affect the approach of marketers/advertisers when marketing the environmental credentials of a business or its products or services?

The key takeaway

The World Federation of Advertisers (WFA) has put forward six principles to guide marketers when advertising a business’ green credentials, to avoid “greenwashing” (defined as “disinformation disseminated by an organisation so as to present an environmentally responsible public image”).

The background

In light of the growing societal focus on the threats posed by climate change, brands and advertisers have capitalised upon the green credentials of their products and services to make them more appealing to consumers. However, much of the guidance surrounding the marketing of companies’ efforts to be more sustainable has proven to be inadequate and/or out-of-date. In response, the WFA has put forward six principles to guide marketers in promoting their environmental credentials. The WFA is a global network representing the interests of marketers and advertising associations, whose members include major global brands and national associations which represent marketers, such as ISBA in the UK and the ANA in the USA.

The development

The WFA commissioned the International Council for Advertising Self-Regulation and the European Advertising Standards Alliance to create the guidance, supported by environmental experts from the UK’s ASA. The aim of the principles is to ensure that environmental claims are perceived as trustworthy and avoid accusations of “greenwashing”. The six principles are as follows: 

1. Claims must not be likely to mislead, and the basis for them must be clear. 
2. Marketers must hold robust evidence for all claims likely to be regarded as objective and capable of substantiation.
3. Marketing communications must not omit material information. Where time or space is limited, marketers must use alternative means to make qualifying information readily accessible to the audience and indicate where it can be accessed.
4. Marketers must base general environmental benefit claims on the full lifecycle of their product or business, unless the marketing communication states otherwise, and must make clear the limits of the lifecycle.
5. Products compared in marketing communications must meet the same needs or be intended for the same purpose. The basis for comparisons must be clear and allow the audience to make an informed decision about the products compared.
6. Marketers must include all information relating to the environmental impact of advertised products that is required by law, regulators or Codes to which they are signatories.

These principles will eventually be accompanied by an e-learning tool, aimed at helping marketers to make credible environmental claims and avoid accusations of greenwashing. 

Why is this important?

The need for stronger guidance on green marketing is clear. The International Consumer Protection Network found in a sweep of almost 500 websites that 40% contained green claims that could be considered misleading. This is reflected in a lack of understanding among consumers about which products are truly environmentally friendly; for example, one paper found that 61% of EU consumers found it difficult to understand which products were genuinely environmentally friendly. Not that it will be that easy for marketers to comply with these principles. In the guidance accompanying the first principle, marketers are advised to avoid broad claims such as “sustainable” or “green” unless they have robust evidence that their product or business has a positive (or no negative) impact on the environment. The fourth principle also requires marketers to base environmental claims on the full lifecycle of their product or service unless the marketing communication states otherwise. In practice this means that many marketers may be unable to state that a business or product is environmentally friendly or has zero emissions, at least not without some kind of qualification. 

Any practical tips?

While these principles are not legally binding, they were developed with input from the UK’s ASA and peer reviewed and approved by various advertising regulators across Europe. It’s therefore increasingly likely that advertising regulators will look to uphold and promote these principles. Being able to understand and comply with them may be a useful way for marketers to get ahead of the curve of any future regulations in this area. Equally, they may be able to get a march on their competition, by building genuine consumer trust in their environmental activities by following the robust practices they promote.