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Commentary: Corporates, please stop with the misleading green marketing

More companies are hopping on the sustainability bandwagon, yet not all are actually doing good – and could even be doing more harm to their brand, say these Singapore sustainability advocates.

Commentary: Corporates, please stop with the misleading green marketing
Cans and plastic bottles brought in for recycling fill containers at a recycling centre in Sacramento, California, on Jul 5, 2016. (AP Photo/Rich Pedroncelli, File)

SINGAPORE: News that Coca-Cola will sponsor the United Nations climate conference in Egypt, COP27, was hard to swallow for sustainability advocates.

According to the alliance Break Free From Plastic, Coca-Cola has been the world’s top plastic polluter for four years in a row. “It’s astounding that a company so tied to the fossil fuel industry is allowed to sponsor such a vital climate meeting,” the group was cited as saying in media reports last month.

Other companies that tried to promote their sustainability efforts have faced similar backlash. In August, DBS Bank published a post on LinkedIn about their decision to commit to zero thermal coal exposure by 2039. The caption ended with the slogan: “More like an eco-warrior, less like a bank.”

The post drew sharp criticism from other sustainability leaders, with founder of PropertyGuru Steve Melhuish calling it “greenwashing hogwash”.

Melhuish argued that a deadline of almost two decades later is not sufficient when climate action must be taken immediately. In response, DBS CEO Piyush Gupta said DBS no longer funds thermal coal projects, and 2039 is when the bank’s current loans will be repaid.

Are sustainability observers too critical? Or are companies today inextricably linked to the fossil fuel economy – so any attempt at painting oneself green comes across as hypocrisy? 

THE RISE OF GREENWASHING

As climate consciousness is on the rise, experts have warned of a growing risk of greenwashing – when a company tries to make its operations and products seem more environmentally friendly, without taking tangible steps to ensure that they really are.



The product or service is marketed such that consumers feel good about what they're buying, encouraging more consumption.

An example of this is when fossil fuel companies run advertisements on their renewable energy investments in a bid to show that they are serious about transitioning to cleaner energy. However, “green energy” investments often only account for 0.2 to 2.3 per cent of annual capital expenditure among Big Oil companies, according to non-profit Carbon Disclosure Project.

Such greenwashing is not only misleading but can have tangible negative consequences for the climate and public health.

In an infamous scandal in 2015, Volkswagen was found to have installed “defeat devices” in about 11 million diesel cars which controlled emissions in test conditions, but not on the road. This allowed the German carmaker to market the vehicles as low-emission in the US and Europe, when pollution far exceeded regulatory limits.

Volkswagen has paid more than €30 billion (US$29 billion) in fines, compensation and buyback schemes so far. But besides class lawsuits and removal of products from the market, greenwashing creates confusion and mistrust among customers.

ACCIDENTAL GREENWASHING

Greenwashing is not always intentional, as in Volkswagen’s case. It is not uncommon for brands to make “sustainable” changes, only to end up with outcomes that are worse for the environment.

In Singapore, we see this when retailers and eateries switch from plastic disposables to paper or compostable alternatives. But waste in Singapore is incinerated, so a “biodegradable” straw would meet the same fate as a plastic straw, then take up space in our limited landfill instead of being allowed to degrade.

CAN GREEN MARKETING EXIST WITHOUT GREENWASHING?




 This article was originally published on . Its inclusion on this website is solely for education purposes. 

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