The Greenwashing Trap: How to Avoid Stumbling Over Stricter EU Regulations
As awareness around sustainability grows, so too do the demands for how companies communicate their sustainability efforts. The new EU greenwashing directive marks a significant shift in how sustainability communication should be conducted, aiming to prevent companies from misleading consumers with vague and unsubstantiated environmental claims. This places significant demands on businesses, which must now ensure that their communication is accurate, documented, and transparent. But how can companies avoid stumbling into the greenwashing trap? Here are some practical tips based on the recent debate at Arendalsuka.
Understand and Comply with the New Regulations
The first and most crucial step in avoiding greenwashing is to be fully familiar with the new regulations. The EU has introduced a greenwashing directive that bans several common marketing techniques previously used to promote a "green" image. This includes the use of vague terms such as "environmentally friendly" or "sustainable" without solid documentation to back up these claims. To meet these requirements, companies must now ensure that every claim they make is clearly supported by data and verifiable information.
Siri Nordhagen from IKEA Norway highlighted during the debate that it is essential to use precise and scientifically grounded language. IKEA has adapted its communication by using verifiable targets from Science Based Targets, which provides a reliable foundation for their sustainability claims. This is a great example of how businesses can adapt to the new rules by ensuring that their communication is both accurate and based on recognized standards.
Internal Training and Awareness
To avoid greenwashing, it's not enough for top management to understand the new requirements. The entire organization must be on board. Camilla Gramstad from Elkjøp Nordic emphasized during the debate the importance of internal training. Elkjøp has implemented guidelines based on the greenwashing charter, giving employees the tools they need to identify and avoid potential missteps in marketing.
Furthermore, Elkjøp has developed a system for collaborating with its suppliers to ensure that their marketing materials comply with EU regulations. By returning marketing materials that do not meet the requirements, Elkjøp actively works to avoid greenwashing. This way, the company becomes a "trusted advisor" for its suppliers, while also ensuring that their communication is in line with the stringent requirements.
Transparency and Documentation
Another key to avoiding greenwashing is ensuring that all communication is transparent and well-documented. Markus Adaktusson from Telenor Group pointed out how Telenor works with sustainability from a value creation perspective and how they report their progress regularly in their quarterly reports. This includes concrete information on the company's goals in areas such as climate, health, safety, and digital inclusion, as well as how these are tied to economic benefits.
To avoid greenwashing, companies should ensure that their sustainability efforts are well-documented and that this documentation is easily accessible to both consumers and regulatory authorities. By being open about the measures taken and the results achieved, businesses can build trust and avoid accusations of greenwashing.
Conclusion
Avoiding the greenwashing trap requires a focused effort from companies, where they must be meticulous in how they communicate their sustainability efforts. By understanding and complying with the new regulations, ensuring internal training and collaboration, and being transparent and documenting all claims, companies can navigate the increasingly complex landscape of sustainability communication. This is not only necessary for legal compliance but also for building long-term consumer trust.
