HOW IT HARMS SUSTAINABILITY EFFORTS

Greenwashing is a marketing technique that creates the illusion of a company or product being environmentally friendly. It is a deceptive tactic used to make consumers believe a product is more sustainable than it actually is. It is suspected that more than 95 per cent of consumer products claiming to be green are guilty of at least one count of greenwashing. Meanwhile, 72% of business execs admit their own company engages in greenwashing.

Throughout 2022, a flurry of companies were called out for greenwashing. There were class action lawsuits, brands sued for falsely marketing products, and companies whose reputations were being shredded to tatters in the media when a greenwashing news story broke concerning one of their brands.

Yet still, greenwashing happens and results in misleading consumers, and also harming sustainability efforts. When businesses greenwash, they are hindering the fight against global warming, and helping to maintain the status quo through misinformation. The truth is, with the world falling desperately short on climate goals, we simply can not afford for greenwashing to take place.

Organizations can’t truly become sustainable if they are not honest about the environmental impacts of their products, and greenwashing prevents that from happening. It can also harm the progress of other organizations that are actually striving to be more sustainable and reduce their environmental footprint. As businesses, stakeholders and consumers alike, it is essential to be aware of the dangers of greenwashing and how it affects sustainability efforts.

WHAT IS GREENWASHING?

Greenwashing is a form of false advertising that is used to promote products or companies as environmentally friendly and sustainable, when they are not. Products can be falsely advertised to appear as more sustainable than they are by using misleading marketing techniques such as false advertising about their ingredients, sourcing, or manufacturing process. Greenwashing can also occur when products are advertised as being better for the environment, but then are distributed in packaging that is not recycled or does not have recyclable materials. Or that it is carbon neutral by purchasing low-grade carbon offsets or undertaking unsustainable tree planting programmes. The list of potential greenwashing tactics is limitless.

Greenwashing Misleads Consumers

Many greenwashing claims are not based on facts, and many products that are advertised as being environmentally friendly are actually not sustainable. Greenwashing can take the form of sustainability or carbon pledges that are not matched up by action, corresponding deadlines or completed projects.

Every single action misleads consumers into believing that products are better for the environment than they actually are because they are not being honest about the environmental impact of their products. In a recent study by McKinsey, it was reported that eighty-eight percent of Gen Z doesn’t trust eco-friendly claims. However, many consumers still look for sustainable products when shopping, which is a positive change.

Unfortunately, with the growing number of sustainable products and marketing claims about them, most of which are not backed up by robust data or reporting,consumers can become overwhelmed trying to navigate their choices. Greenwashing often confuses consumers and misleads them into buying products that are not sustainable. This can cause them to purchase less sustainable products in the future, especially if they lose trust in sustainable products.

Meanwhile, if sustainable product claims are not genuine, this can lead other organizations to lose trust in the entire product category. In turn, this can cause them to lose trust in other sustainable products and avoid purchasing them in the future, which can be harmful to a sustainable supply chain. It’s an ever decreasing circle.

Surely it’s time for businesses to lift the smoke screen and empower consumers to make the right choices by being open and transparent about their sustainability efforts?

Eradicating Greenwashing

Greenwashing exists because of a lack of transparency and accountability. It is all too easy these days for companies to make big PR announcements of climate friendly projects without then having to back it up with action. However, the environmental responsibility of companies has never been greater, and simply pledging to be carbon neutral or negative by 2030 or 2050 without being able to back up these targets with action simply won’t cut it.

At Permutable, we have developed an AI tool to identify greenwashing to hold companies accountable to their claims and provide transparency concerning their sustainability claims and reported actions.

We use cutting edge machine-learning techniques enabling a highly trained and rigorously tested AI to review each and every company’s history of carbon pledges. This is then examined in detail to determine whether there is evidence that these pledges are supported by sufficient actioned projects or initiatives. It also looks for excessive use of greenwashing language in corporate literature – for example, in company and brand websites or literature as well as on marketing and publicity messaging and activity.

This, for example, includes summary statistics of emission pledges and project announcements looking at the number of net-zero announcements, future project announcements, past project announcements and total number of project announcements. We then look at the monthly aggregates of announcements for emission pledges and projects, emission reduction pledges and their deadlines and project announcements against project deadline dates.

It is this kind of detailed and granular data that will enable us all to come together and ensure companies are held accountable for their sustainability actions. In doing so, it will be infinitely harder for companies to get away with greenwashing, as their pledges and actions will be laid out for all to see. The upshot? We will be able to move forward in an open and honest fashion, tackle the common goal of reducing carbon emissions and damage to our planet and to our shared future without being distracted or compromised by greenwashing.

Companies Must Avoid Greenwashing At All Costs

There are a few steps that companies can take to avoid greenwashing and avoid misleading customers about the sustainability of their products.

- Be Honest: There are many ways that companies can take part in sustainability practices and make their products more sustainable. However, in order to avoid greenwashing, it is essential to be honest about the sustainability of their products.

- Be Transparent: Companies should be transparent about their manufacturing processes, ingredients, emissions and environmental impact, and how they are making their products more sustainable. They should also be transparent about the sustainability of their products and avoid making false claims.

- Be Specific: When discussing the sustainability of their products, companies should be specific about the environmental impacts. They should avoid using phrases such as “natural”, “eco” or “green”, which are often misused in marketing. Instead, they should be specific about the environmental benefits of their products.

Final Thoughts

Greenwashing is a deceptive marketing technique that damages a company’s reputation, brand loyalty, whilst causing customer confusion, distrust and disconnect and ultimately a company’s bottom line. It is vital that businesses are aware of the dangers of greenwashing and how it can harm sustainability efforts. Ultimately, when it comes to greenwashing, there can only ever be losers. Find out more about Permutable’s AI tool to identify greenwashing here. Pre-register your interest or sign up to be a pilot user here. Follow Permutable AI on LinkedIn and Twitter. c

MSC Cruises offers affordable luxury cruise ship experiences from the UK to the world. It’s a relative newcomer to the industry and, since it started focusing on the UK and Irish market in 2018, has gained the title of fastest growing cruise line operator in the world. In its journey to the top, MSC Cruises has also helped put a spotlight on environmental responsibility in the cruising industry.

Managing Director of MSC Cruises UK and Ireland, Antonio Paradiso, provides Sustainable Business Magazine with a succinct introduction to the company’s incredible success story:

“MSC Cruises is the fastest growing cruise liner in the world. We currently have 22 ships within our fleet, with a few more joining over the coming years. We are number one in Europe, in South America and South Africa, and in the Arabian Gulf. Last but not least, our business is now growing rapidly in the US. MSC Cruises covers every major cruise destination across the globe, and has had a million and a half passengers join our beautiful ships since it began operating.”

The MD goes on to provide more details about the company’s success as a UK operator:

“We started seriously focusing on the UK about five or six years ago, but our business has gone from strength to strength over the last few years – even with the pandemic. More and more British customers are booking cruises with MSC Cruises. That’s pretty much down to the success of having ships sailing from Southampton year-round. Five years ago, we had just one ship calling at Southampton four or five times a year. Now we have a ship sailing from Southampton every week of the year. That’s proven to be very popular with customers.

“In terms of our most popular destinations from Southampton, British customers love the sun so they’re always looking for sunny destinations. Probably the most successful itineraries are the Canaries and Mediterranean. However, we are seeing itineraries in northern Europe, Scandinavia, and Iceland gain popularity recently too.”

Journey To Zero Emissions

MSC Cruises realises that sustainability is more important than ever. That’s why, amid its busy voyage schedules, the company has dedicated itself to a number of significant environmental innovations.

Perhaps the most important of these is its goal of net zero greenhouse gas emissions by 2050. Paradiso explains more about this ambitious target:

“For the past few years, we’ve wanted to hit net zero emissions across our busi- ness by 2050 while also reducing total carbon emission intensity by 40% by 2030 versus the 2008 basis. At the moment we have already reached the goal of reducing them by 35%, so we’re perfectly on track to reach our target.

“WE’VE WANTED TO HIT NET ZERO EMISSIONS ACROSS OUR BUSINESS BY 2050 WHILE ALSO REDUCING TOTAL CARBON EMISSIONS BY 40% BY 2030.

“This comes with a lot of work and investments, especially in the building of new ships. With each and every new ship we try to improve and enhance all the technology and all the processes that are currently in place to try and get us closer to the goal more quickly. There is an internal committee, that focuses on all aspects of the ship. They look at everything from recycling material we have on board, to the type of materials used when building new vessels, and even the best type of hull paint for minimising friction on the water. Most importantly for us, though, is finding the cleanest possible fuel for powering our ships.”

MSC World Europa is one example of this research and development. Launched in late 2022, MSC World Europa is the most environmentally advanced cruise vessel in MSC Cruises’ fleet. It is powered by liquefied natural gas (LNG). This reduces carbon emissions by 25% compared to traditional diesel fuels, greatly reduces nitrogen oxides, and nearly eliminates sulphur oxide emissions. Crucially, it also opens the way to further innovation including biofuel cells. The company expects delivery of its second

LNG vessel, MSC Euribia, in June 2023 and its third, MSC World America, in 2025.

“At the moment, LNG is the most sustainable form of fuel we have available at scale,” explains Paradiso. “At the same time we are working on several other projects, studying other sources of fuel such as fuel cells and biofuels. We are checking out other technologies and fuels that could allow us to be even better in the future. There’s a long way to go but we are proud of our commitment to environmental sustainability and progress in this area. This is what we stand for. This is part of our core values.”

However, as the UK and Ireland Managing Director points out, it’s not just about the fuel and the ships. There are many other areas of MSC Cruises’ business open to refinement.

“It’s not just about the ship,” says Paradiso. “It’s about scrutinising resource use and waste, supporting our people, investing in sustainable tourism, localising our supply chain, and building greener cruise terminals. It’s a vast project but our sustainability committee checks our progress every year. Executive chairman of MSC Cruises, Pierfrancesco Vago, checks our progress at the end of every year against the targets we’ve set ourselves. He then uses his conclusions to inform our targets for the next year, all of which are drawn from industry-approved metrics. This means we are flexible and responsive to the successes and challenges of our business from year to year while still working towards our ultimate net zero emissions goal.”

A Peaceful Place

One unique environmental project for MSC Cruises is the island of Ocean Cay, located in the Bahamas. The company bought the island, which at the time was used for mining sand, and transformed it into a green haven.

“Only five or six years ago, Ocean Cay was a sand extraction site,” explains Paradiso. “It was a desert. There was no coral, no vegetation, there was absolutely nothing. In collaboration with the Bahamian community, we bought the island and spent six years bringing that island back to life.

“We had people scuba diving for five years, restoring the more than 460 corals beneath the water. We have planted more than 70,000 plants on the island. The changes have attracted all sorts of plant and animal life. Ocean Cay is now a natural marine reserve. We didn’t transform it into a theme park by adding rides and all sorts of attractions, though. It’s literally what it says on the tin: a natural marine reserve. Beaches, beautiful sea, corals, vegetation. A peaceful place.

“It’s now included in some of our itineraries. When we sail the Caribbean, we always make sure there’s a four-day stop in Ocean Cay.”

Paradiso notes that sustainability reaches beyond ecological matters, pointing out that Ocean Cay has also helped provide opportunities for local communities:

“All the people that work on the island are local, so we are also supporting the local community. This is a good example of something that is not really giving a return in terms of profits or dividends. It’s just part of a long term sustainability plan. The ultimate goal is to prove, once again, that we are doing everything we can.”

The Future Of Cruising

Both of these projects, as well as many other efforts by MSC Cruises to make its business environmentally sustainable, are highlighted in the company’s new Future of Cruising campaign. Launched in January 2023, the campaign aims to promote how sustainability is at the beating heart of

MSC Cruises’ daily activities and longterm growth strategy. The cross-platform campaign includes videos filmed onboard MSC World Europa, highlighting the unique environmental technologies and solutions of the vessel. The company says it is the first campaign in the cruise industry that focuses on and prioritises a brand’s sustainable ethos..

“The whole purpose of this TV campaign is to share a story with our customers and colleagues from the industry about what we’re doing in order to make this world more sustainable,” Paradiso says.

“FOR YEARS WE’VE HEARD THAT WE CAN DO MORE, THAT WE WEREN’T DOING ANYTHING TO MAKE THIS WORLD MORE SUSTAINABLE. THEN WE THOUGHT NOW IS THE TIME TO ACTUALLY SHOW WHAT WE’VE DONE, WHAT WE’RE CURRENTLY DOING, AND WHAT WE’RE TRYING TO ACHIEVE IN THE NEXT TWO DECADES.”

“Sometimes it’s very easy to just do a commercial advert showing all the lovely, magical things that happen onboard a cruise ship. Then you attach a price to it. We’ve done that before and it works really well. But we wanted to do something different to show that we’re leading the way.

“The travel industry has always been under tremendous pressure when it comes to sustainability, and the cruise sector particularly so. For years we’ve heard that we can do more, that we weren’t doing anything to make this world more sustainable. Then we thought now is the time to actually show what we’ve done, what we’re currently doing, and what we’re trying to achieve in the next two decades.

“Fundamentally, the campaign comes down to one question: Can we do better? Every year so far we’ve done exactly that, so that we may even surpass our 2030 checkpoint. So yes, we believe we can do better. The Future of Cruising will show that.”

Time To Act

All of these developments don’t simply materialise from thin air. They require hard work by a lot of people, all of whom are guided by MSC Cruises’ four key strategic pillars: People, planet, place and procurement.

“Ships are big assets, so it’s more like planning for a floating city than household recycling,” explains Paradiso. “That’s why we have several working groups. Each one is in charge of a specific field of the process. Procurement, as one example, focuses on our supply chains. We are relying more and more on local suppliers so we can reduce the amount of goods transported from one country to another. Those suppliers will also need to share our vision for sustainability.

“At the same time, we are working with academic institutes across Europe. As you may appreciate, we don’t have the answer for every question, so we need to rely on people that are experts in their field. There are consultants, experts, and professors supporting us on this journey. And when it comes to design, our engineers and architects drill down into the smallest details of, for example, hull shape in order to get the best designs for fuel consumption and speed.

“This ethos is spread through every employee in the company. Sustainability is built into our measurements. Usually, success measures are based on passenger volumes, revenues, net per diem, that sort of thing. One of those for us, though, measures what we’re doing to improve on last year’s sustainability metrics. It encourages conversation across all the offices and divisions at MSC Cruises.”

It’s clear that MSC Cruises has not only the ambition to lead the industry, but also the resources to do it. With transport at the top of the list of environmental concerns, the company’s desire to shift not only its own practices but the culture of the cruise industry couldn’t come at a more important time.

Yet among all of the big ideas and lofty ambitions, Paradiso reminds us that such decisions are important at a personal level. “I have a young son so I’m doing it for him,” the UK and Ireland Managing Director says. “I’m doing it for him and all the kids that will live on this planet in the future. There’s no time to waste. It’s time to act.” c