Debunking green claims that won’t wash

The practice, in which companies falsely present their products, services, or practices as more environmentally friendly than they are to deceive customers, has prompted a pushback by consumers who are demanding greater accountability, fines and regulation to combat the tactic.

The survey by not-for-profit advocacy group Parents for Climate found that 59 per cent of parents who had fallen victim to greenwashing had cancelled or switched their energy companies, banks, super funds and insurance as a result.

The report revealed 25 per cent of parents planned to leave their provider in the next six months over concerns about misleading environmental claims.

Parents for Climate CEO Nic Seaton said the findings exposed a deepening frustration and growing trend among parents, carers and families prepared to fight back against misleading sustainability claims.

“Australian families are demanding real climate action, not empty promises,” he said.

“Companies that mislead customers with greenwashing are losing trust - and business.

“Consumers want honest, accountable and transparent sustainability commitments, and they’re willing to switch providers to ensure their money supports genuine climate solutions.”

The report also revealed:

• close to one in four of those surveyed (27%) took their greenwashing concerns directly to the company concerned
  
  
• almost a quarter took to social media or contacted media outlets to spread awareness of bogus sustainability claims by companies
  
  
• 45 per cent of parents and carers planned to warn friends and family over the next six months of greenwashing concerns relating to their energy provider, bank, or insurance company

“Parents and carers rely on honest and direct advice to make these important decisions and they’re tired of being sold dirty products as clean,” said Seaton.

“If products generate pollution that harms the climate our children are growing up in, businesses should not be able to market them to us as ‘green’ or ‘carbon neutral’”.

The report found 90 per cent of parents and carers believed greenwashing was getting worse, 87 per cent wanted immediate action to hold companies accountable and 85 per cent believed government needed to create stricter regulation of sustainability claims.

Seaton said the federal government was making the situation worse by legitimising unsubstantiated environmental claims through the Climate Active Scheme, in which many companies use "offsetting" as a substitute for meaningful climate action.

“It’s high time we review the state sponsored greenwashing happening through the Climate Active program and ensure transparent plans are in place for genuine emissions reductions.”

Parents for Climate called for the Australian Competition and Consumer Commission (ACCC) and government to step up and take the onus off parents and carers, who should not be expected to make sense of greenwashed corporate sustainability language.

The group also wants to ensure companies adhere to standardised guidelines when communicating environmental claims.

“Parents and carers are incredibly busy but care deeply about the world they are leaving their children,” said Seaton.

“They are taking the time to speak up and this is a critical moment to listen and understand. We have an obligation to the next generation to do more and we have a window here for real action to reduce emissions, as opposed to companies relying on so-called offsets to justify their ongoing emissions.”

In what it claims is the first Australian civil action brought against a company for marketing a consumer product as “carbon neutral,” Parents for Climate is suing EnergyAustralia for allegedly misleading more than 400,000 consumers about the climate impact of its products.

The hearing will be heard in the Federal Court next month.

More information

ACCC cracks down on green claims that won’t wash