GREENWASHING GUIDELINES
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Context:
Centre released new greenwashing guidelines to restrain companies from making false or misleading claims about the environment-friendly nature of their products or services.
What is Greenwashing?
Greenwashing is the tendency of companies, organisations or nations to make false or unverifiable claims of environment-friendliness or climate-friendliness of their activities, products or services.
Many of the organisations also have falsely stated legal commitments, or targets, to adhere to environmental norms.
Countries have also been accused of greenwashing in cases like when they exaggerate the potential of their forests to absorb carbon dioxide and the impact of a new regulation on carbon emissions.
As a result, companies and governments in many cases make claims that are exaggerated, misleading, or, in some cases, wrong.
Examples:
In the 2015 Volkswagen scandal, the German car company was found to have been cheating in emissions testing of its widely marketed green diesel vehicles.
Moreover, many other big corporations such as Shell, BP, and Coca-Cola have faced accusations of greenwashing.
The Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims:
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About |
The guidelines were issued by the Central Consumer Protection Authority (CCPA) which works under the Consumer Affairs Ministry. The new norms would complement the existing Guidelines for Prevention of Misleading Advertisements and Endorsement for Misleading Advertisements, 2022, which dealt with false or exaggerated claims in advertisements in general. |
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Scope |
The guidelines are limited to curbing greenwashing in advertisements of products or services. |
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Definition of greenwashing |
The guidelines define greenwashing as “any deceptive or misleading practice” that conceals, omits or hides relevant information, or exaggerates, or makes vague or unsubstantiated environmental claims about the product or service. |
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What constitutes greenwashing? |
According to the guidelines, the use of misleading words, symbols or imagery, highlighting only positive environmental attributes while downplaying or hiding negative aspects would constitute greenwashing. |
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Advertising guidelines for preventing greenwashing |
Clear Definitions: The guidelines provide clear definitions of terms related to greenwashing and environmental claims, ensuring that both businesses and consumers have a common understanding. Transparency Requirements: Manufacturers and service providers are required to substantiate their environmental claims with credible evidence. This includes providing detailed information on the methodology and data used to support such claims. Prohibition of Misleading Terms: The generic terms such as “clean”, “green”, “eco-friendly”, “good for the planet”, “cruelty-free”, “carbon neutral”, “natural”, “organic”, “sustainable”, or similar other descriptions for a product should be substantiated with evidence. Otherwise, they will be prohibited. Third-Party Certifications: Third-Party Certifications are required in substantiation of environmental claims.
Technical terms: Companies are mandated to explain the meanings of more technical terms such as “environment impact assessment”, “greenhouse gas emissions”, or “ecological footprint”, which are used to advertise a product or service. Adequate Disclosures: The companies are required to provide clear and accessible disclosures of material information. Claims must specify the aspect referred to (good, manufacturing process, packaging, etc.) and be supported by credible certification or reliable scientific evidence. |
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Applicability |
The guidelines will apply to all environmental claims made by manufacturers, traders, or service providers who have advertised their goods, products and services, or to an advertising agency or endorser whose service is available for the advertisement of such goods, products or services. |
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Penalties for violation |
A penalty/fine of up to 10 lakh rupees on manufacturers, endorsers or advertisers for any misleading advertisements may be imposed by CCPA. A fine may increase up to 50 lakh rupees in case of repetitive violation of the guidelines. |
Important articles for reference
Central Consumer Protection Authority (CCPA)
Sources:
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PRACTICE QUESTION Q.Consider the following statements about Greenwashing:
Which of the above statements are incorrect? A)1 and 2 only B)2 and 3 only C)1, 2 and 3 only D)None Ans: B Explanation: Statement 1 is correct: Greenwashing is the tendency of companies, organisations or nations to make false or unverifiable claims of environment-friendliness or climate-friendliness of their activities, products or services. Many of the organisations also have legal commitments, or targets, to adhere to environmental norms. Statement 2 is incorrect: Countries have also been accused of greenwashing in cases like when they exaggerate the potential of their forests to absorb carbon dioxide, and the impact of a new regulation on carbon emissions. As a result, companies and governments in many cases make claims that are exaggerated, misleading, or, in some cases, wrong. Statement 3 is incorrect: The Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims: The guidelines were issued by the Central Consumer Protection Authority (CCPA) which works under the Consumer Affairs Ministry. The new norms would complement the existing Guidelines for Prevention of Misleading Advertisements and Endorsement for Misleading Advertisements, 2022, which dealt with false or exaggerated claims in advertisements in general. The guidelines are limited to curbing greenwashing in advertisements of products or services. |
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