Blessed is the businessperson whose customers are his/her biggest marketers. But one of the unforgivable marketing sins of the 21st century is greenwashing. Don’t fall into the trap.
If you have a great product, it will create excitement among your customers, greatly influencing their desire to share with others about the fantastic experience they had with your product. Don’t waste time and money on Greenwashing because customers are now smarter, and there are laws in place to penalize this deception.
What is greenwashing?
The term “greenwashing” was coined in the 1980s. It refers to fake corporate sustainability claims made by companies who are not being transparent with their customers or consumers about the reliability of what they are advertising.
In the 1980s, people relied heavily on television, radio, and print media as the primary sources of information. That was a far cry from today, where consumers can go online to verify claims made by businesses.
Greenwashed businesses claim to be environmentally friendly when the opposite is true. It’s misleading because these companies will typically claim to be protecting the environment, but they aren’t doing anything regarding their environmental stance.
Why are companies greenwashing?
There are many reasons companies start greenwashing their brands in the first place. Businesses want to make a profit and, at the same time, be able to appeal to a consumer segment that values the environment. Also, businesses want to get consumers to believe that their product is good for the environment.
As part of a 2015 Nielsen Global Corporate Sustainability Report, 66% of consumers have indicated that they would spend more on a product from a company recognized for being environmentally friendly. That number jumps up to 73% among millennials.
What could be the negative impact?
A well-known case of greenwashing is that of the German car manufacture Volkswagen, who was cheating on emissions tests by fitting vehicles with a “defeat” device — they made software that identified when it was undergoing an emissions testing, triggering lower performance on emissions level and featuring these low-emissions in marketing campaigns. In truth, however, these engines were emitting up to 40x the allowed limit for nitrogen oxide pollutants.
Although sounding like an environmentally friendly buzzword, Greenwashing is currently seen as a less-than-sincere marketing tactic among many companies who want to use these ideas to their advantage. It has even caused the European Commission and government agencies to release findings on cases of Greenwashing where they’ve uncovered major instances of Greenwashing that are not necessarily doing what they say they’re doing.
The European Union decided to conduct a sweep on “greenwashing” this year. In other words, businesses that had been making unrealistic claims about being more environmentally aware than they were. The “sweep test” was undertaken on how consumers reacted to purchasing more environmentally friendly products. It was believed that some 42% of these products were making some false claim and could potentially open themselves up to charges of unfair consumer practices, which are illegal in the EU.
How to prevent it?
If your business is seeking to improve its image, it would be prudent to rethink how it markets itself to consumers. The old adage, if it’s not true, it’s not true, should guide your approach when designing a sustainable marketing strategy.
There is a distinction between green marketing and greenwashing. Good marketing needs to be based on a solid foundation – like the purpose you company has, why you started your company in the first place. The story may seem simple at first glance, but it is a fountainhead from which you can create different brand activations that will ultimately set you apart from the rest of the competition in an effective way.
Next, you need to ensure your products are sustainable. There is a lot of hard work ahead of you before your company is truly successful, but this is the first step of many that bring solidity to your business. When you get that right, consumers will begin sharing how they view your company’s sustainability efforts. This will help spread awareness regarding your brand and its push towards greater responsibility within its industry.
2021 is not a year to sin. Greenwashing does nothing but brings harm to your reputation. Instead of falling into the trap, put energy into making your company an asset not just because of what it has but also what it stands for!
Final Thoughts
Use for your Green Marketing “Positioning with Purpose” as a tool in your marketing and branding arsenal. We at Yellow-Steps have the knowledge and experience necessary to help you apply it optimally. Partner with us, and we’ll take your brand to the next level and beyond. Call us today!
