Green Lies: Navigating the Policy Jungle for Authentic Sustainability
In a world crowded with eco-friendly labels, promises of pristine environments and seemingly sustainable products, it’s easy to feel like you are making a difference by choosing the ‘Green’ option. But, how often have you attempted to peel the layers of truth when a brand claims that it sources its ingredients sustainably or plants a tree with every purchase? Have you ever wondered the credibility of those claims? It’s sad and even funny, to see cosmetics brand claiming itself to be ‘Sustainable’ or ‘Eco-friendly’ just on the basis of using recycled plastics in their packaging. Meanwhile, the significant issue of containing harmful microbeads or other chemicals in their products remains concealed. Welcome to the world of Green-Washing, where appearances can be deceiving, and environmental intentions may be no more than a glossy marketing facade.
US environmentalist Jay Westerveld first coined the term “greenwash”, to indicate the false environmental protection claims of enterprises. It came to the forefront, when hotels started urging the guests to re-use towels as a water conservation method, but they didn’t implement other substantial environmental initiative instead enjoyed the advantages of reduced laundry costs. In the 1980s, as environmental awareness surged, companies embraced eco-friendly imagery in products and ads, tapping into consumers’ sustainability desires. This clash between environmental protection and modern economic growth has pushed companies into greenwashing tactics.
Does the image above seem really familiar to you? I guess, in the present times it’s very common to find such elements in the packaging of most items starting from personal care products, home décor, travel accessories, food and what not! Somewhere, I feel social media has a contradictory role to play, in one hand promoting sustainable behaviour among consumers while on the other creating a sizeable platform, attractive and potentially profitable market segment for companies to pursue. Due to its tendency to highlight only the most visually appealing content, which often masks the true nature of a company’s environmental commitment, social media has made the problem of “greenwashing” worse. Vague terminology, influencer partnerships, and token gestures are easily propagated, misleading consumers. Due of the platform’s limited accountability and short attention span, businesses take advantage of quick-scrolling behaviour and evade through scrutiny.
Let’s now ponder upon the question of how green-washing concerns different stakeholders? While the answer is complex, the widespread negative consequences can be highlighted across three main groups: consumers, businesses, and society. For consumers, it fuels skepticism, erodes trust, and undermines their willingness to support genuinely eco-friendly products. Enterprises suffer from damaged reputations, reduced consumer loyalty, and a loss of credibility due to misleading claims. Moreover, businesses genuinely committed to sustainability lose their competitive edge. On a societal level, greenwashing diminishes public engagement with broader environmental concerns, as it perpetuates a sense of distrust and cynicism. Hence, addressing these issues needs a systematic approach including policy interventions and specific market regulations.
In India, the phenomenon of green-washing is gaining rapid prominence. A study by the Advertising Standards Council of India (ASCI), found that 79% of green claims made in advertisements in India were misleading or exaggerated. In addition to that, a survey conducted by the Consumer VOICE, nearly 40% of the products marketed as “green” or “eco-friendly” in India did not have any certification to back up their claims. These numbers certainly prompt us to have a closer examination at the policy initiatives, guidelines, and market regulations that aim to counter this deceptive practice in India. A critical analysis of these measures becomes imperative to assess their effectiveness, identify gaps, and propose potential enhancements.
- Bureau of Indian Standards (BIS) Eco-Labelling: BIS introduced ‘Eco-Mark’ label to indicate products that meets specific environmental standards. However, the scheme has very little promotion and low consumer awareness. The initiative has been operational since 1991, but how many of us have observed the logo of an earthen pot in the huge variety of products marketed and sold as ‘eco-friendly’ items? This definitely speaks to us about the poor implementation of the program. According to a research report by CUTS, BIS has a committee of experts who belong to different institutions, industry and consumer groups — to set standards. However, in reality BIS has often been criticized for favouring an overrepresentation of government entities. Consequently, this tendency results in the formulation of standards based more on what is deemed “desirable” rather than focusing on actual necessities. Again, the report has also pointed out BIS’s favouritism towards MNC’s. Critics also argue that in an increasingly globalized market, businesses prioritize certifications that are recognized internationally to appeal to a broader consumer base. If Eco Mark does not align with global sustainability standards, it could limit its attractiveness. Considering these aspects, can we say Eco-mark initiative was able to address the issue of greenwashing adequately?
- The Consumer Protection Act, 2019: It strives to protect consumer rights and hold companies accountable for unfair business practices'. The Act currently gives consumers the right to file a complaint against unfair business practices', which includes deceptive advertising. However, the law does not specifically mention greenwashing. Don’t you think a clear definition of “greenwashing” would let customers take proper legal action against companies that make false environmental claims?
- Voluntary Guidelines on CSR and Sustainable Development: The National Voluntary Guidelines on Social, Environmental, and Economic Responsibilities of Business were introduced by the MCA in 2011. The guidelines create awareness about the importance of sustainability, corporate social responsibility, and ethical business practices. However, their voluntary nature limits their enforceability and impact on companies that prioritize profits over sustainability. The lack of mandatory reporting and consequences for non-compliance reduces the incentive for companies to adhere to these guidelines rigorously.
- Green Bond Framework: The green bond framework in India represents a significant step towards financing sustainable and environmentally friendly projects, yet it faces several challenges. Firstly, it lacks standardized definitions and criteria for what constitutes a “green” project. This can lead to inconsistencies in project selection and reporting, which in turn could dilute the credibility of green bonds. Secondly, the current framework tends to focus on renewable energy projects, such as solar and wind power, while neglecting other important sectors like sustainable agriculture, waste management, and water conservation. Diversifying the range of eligible projects could lead to more comprehensive sustainability outcomes.
In conclusion, while these policies and frameworks demonstrate progress, there are challenges in enforcement, clarity, and awareness that need to be addressed. Furthermore, in the era of social media advertising, distinct and more stringent rules for green claims on these platforms become imperative. Influencers must exercise caution and mindfulness when endorsing products as ‘Eco-friendly’. A harmonious blend of standardized criteria, improved enforcement mechanisms, and education for consumers and businesses could collectively strengthen India’s fight against greenwashing.