Greenwashing: Our tips for communicating transparently
Corporate environmental sustainability initiatives are increasingly met with a cynically raised eyebrow, by savvy stakeholders who’ve seen more than their fair share of greenwashing. What exactly is greenwashing? The Oxford Dictionary defines it as “disinformation disseminated by an organization so as to present an environmentally responsible public image.”
This sounds quite Orwellian, although it doesn’t always start out that way. Often, companies do have good intentions about being more environmentally sustainable, but sometimes marketing departments get carried away, or a company’s promises get ahead of its ability to deliver. The problem is, that it’s very hard for the ordinary person to tell whether green commitments are (a) genuine, or (b) effective, and so the cynicism kicks in.
So, if it creates scepticism, why do organizations greenwash?
Well, it’s not always intentional, as we said. But when it is, it’s usually because of the thing that triggers most corporate dishonesty: money. Being green is lucrative. Research shows that 75% of consumers would go out of their way to purchase a sustainable product. Although price sensitivity remains an issue, there’s an undeniable ‘feel-good’ factor when it comes to purchasing green, so when products (or indeed, services) are comparable on other levels, an eco-friendly label can be a powerful differentiator.
However, greenwashing is very much a case of short-term gain. In addition to risking falling foul of trade practices legislation, companies that mislead their stakeholders about their green credentials face other long-term losses. These can include reputation damage, loss of trust, and lack of consumer loyalty, all of which can hit the bottom line hard, erasing any temporary benefits from the greenwashing.
Researchers Pamela Shockley-Zalabak and Sherwyn Morreale note that “trust influences a wide range of employee and stakeholder behaviors and is directly liked to overall organizational performance.”
So, what’s the alternative? How can businesses communicate their environmental commitments in a way that stakeholders will see as trustworthy? The key is transparency. Studies consistently show that organizations that communicate transparently experience higher levels of positive brand affect. In plain language, that means people like, and trust, the brand more (and so are more likely to purchase from it or recommend it to others).
It’s intuitive to understand, but a lot harder to do, because the tendency is to emphasize the positive (our trucks use biofuel!) and downplay the negative (only 10% of our fleet is biofuel enabled).
However, companies that have the courage to be very clear about their green credentials, and not obfuscate or bury areas for improvement, will do better at building trust. To use the example above, consider which statement you would intuitively trust more:
A: “Our biofuel trucks ensure your deliveries come with the peace of mind of a low carbon footprint”; or
B: “Right now, 10% of our delivery fleet is biofuel enabled. It’s a small start, but we aim to upgrade 5 trucks to biofuel each year. Keep track of our progress on our website.”
Transparency feels better, right?
It’s no different to what we experience ourselves as consumers. Would you rather buy a used car from someone who hid the car’s defects, or a salesperson that told you that the fan belt would need to be replaced in a year?
Here are our top four tips for avoiding greenwashing and becoming a trusted leader in environmental sustainability:
Keep it real
Don’t worry, it’s still OK to share your successes! There’s no need to hide your light under a bushel. But balance is key. Make sure you’re also letting your stakeholders know where you didn’t meet your goals. Or, if you’re knocking it out of the park, tell them how your business will continue to challenge and extend itself.
Ditch the jargon
Many people who distrust climate science do so because it can be complicated to understand. Think about the environmental literacy of your audience, and pitch your communications at the right level. If you regularly deal with scientists, by all means dive into the atmospheric carbon parts-per-million data. But nine times out of ten, plain language and clear visual communication will be much more effective at getting the message across, even for the most sophisticated audiences.
Be a joiner
Many organizations fall into the trap of only talking publicly about their environmental commitments on Earth Day. To show you’re in it for more than the hashtag activism, build regular environmental messaging into your communications planning. That could involve anything from hosting an annual webinar, to sharing helpful or interesting articles on social media. Whatever it looks like for you, the trick is to keep it relevant to your brand, and to show commitment day in, day out, not just on one day of the year.
Invite participation
People have higher levels of trust when they’re actively involved in something. There are many ways you can invite your stakeholders to get involved with your environmental sustainability strategy, and you might be surprised by the benefits. You could form a committee with your suppliers to reduce the carbon footprint of your supply chain, survey your customers about what matters to them, or hold an internal contest for employees to come up with ideas to reduce your corporate emissions (or water use, or waste).
The relationships built between organizations and their stakeholders are no different to the relationships we build in our personal lives. They thrive on honest communication and an ability to tackle difficult topics with transparency and empathy. Build these practices into your communication with clients, employees, suppliers, regulators (hint – everyone!) and you will reap the long-term rewards of trust and loyalty, and feel good about yourself in the process.
