GREENWASHING VS GREENHUSHING

With the Government’s net zero ambition for 2050 fast approaching and the public watching more closely than ever before, Charlotte Cassells, commercial and IP solicitor at Shakespeare Martineau, discusses what businesses can do to promote their green credentials, without falling foul of scrutiny by consumers or regulators.

Greenwashing has become a popular buzzword to describe how businesses potentially mislead consumers through advertising by making environmental claims about products or services that do not stand up to scrutiny.

The backlash against a business found to be greenwashing can be enormous – damaging its reputation, reducing consumer confidence and negatively impacting its bottom line. As a result, many businesses are choosing not to promote their “green” activities or results altogether to avoid public scrutiny, in a developing trend known as ‘greenhushing’.

Greenhushing is bad for consumers and business as a whole – if businesses keep quiet or under-promise on their environmental pledges, this sets a trend in the marketplace for others to follow suit, taking the green agenda out of the public sphere.

The most important step when trying to promote environmental claims is to be as accurate and transparent as possible and hold evidence that objectively substantiates any claims to ensure they stand up to scrutiny should the business be accused of greenwashing.

Advertising, marketing and branding are often where businesses fall down in terms of misleading consumers on their claims regarding environmental products, so they should ensure all marketing strategies are reviewed and any claims being made are substantiated prior to going live in order to ensure they are compliant with UK advertising regulations.

Additionally, businesses should endeavour to keep up to date with relevant regulatory bodies, such as Competition and

Markets Authority and Advertising Standards Authority.

Greenwashing is a relatively new concept, and guidance and resources are continually being released by these regulators to help businesses maintain transparency and accuracy around environmental claims.

Businesses should always be careful about claims made around products and services to ensure they are accurate, truthful and not misleading. However, fear of greenwashing should not lead to greenhushing. Neither the regulators – nor, in all likelihood, the majority of the public – would want to see businesses being discouraged from taking positive measures to combat climate change.