The term 'greenwashing' has been used since the 1980s with the same meaning it holds today. Now, with the expansion of ESG, greenwashing is once again drawing attention. Greenwashing refers to the practice of making a product or service appear environmentally friendly through advertising, promotion, or packaging when it has little to no actual environmental benefit. It also includes communicating corporate strategies or activities as purely environmental initiatives when their true purpose is closer to profit generation.
Why Companies Greenwash
It is not difficult to imagine why companies engage in greenwashing. They seek to gain favor from customers and society, increase investment from shareholders and institutions, and reduce government sanctions. Of course, there may also be genuine corporate concern for the environment and future generations. However, when communicating these "intentions" and "outcomes" to consumers, careful attention is essential.
Regulatory Crackdown on Greenwashing Begins
As corporate sustainability communications, particularly those centered on the environment, have increased, regulations against greenwashing have also strengthened worldwide. In the UK, the Advertising Standards Authority (ASA) has identified and banned over 20 cases of greenwashing advertisements since 2022. The issue lay in specific words or expressions used in advertising and promotional copy.
For example, in June 2022, German airline Lufthansa released a digital poster featuring the slogan "Connecting the World. Protecting its Future." as part of its #MakeChangeFly campaign promoting environmental efforts. This slogan—meaning to connect the world and protect its future—is the type of expression one might have encountered somewhere before, even outside of Lufthansa's advertising. Nevertheless, the ASA raised concerns that the slogan could "give consumers a misleading impression of Lufthansa's environmental impact." In particular, the phrase "Protecting its Future" was seen as an "absolute promise" regarding the environment. Lufthansa countered that the poster was clearly linked to website content detailing the airline's efforts in carbon emission mitigation and waste reduction. They also added that if the first part of the phrase—"Connecting the World"—was not viewed as an absolute promise, then treating only the second part—"Protecting its Future"—as an absolute promise represented an inconsistent standard.
However, the UK's CAP Code requires a high level of substantiation for environmental claims such as "protecting the environment." Ultimately, the ASA ruled that the advertisement could not be displayed in the UK because Lufthansa's environmental targets would take years or even decades to verify, and considering the aviation industry as a whole—which has a significant impact on climate change—there existed no plan or commercially viable technology sufficient to say they are protecting the environment.
[Lufthansa #MakeChangeFly Campaign Poster ⓒ lufthansagroup]
South Korea Also Establishes Advertising Guidelines to Combat Greenwashing
The South Korean government has also created greenwashing prevention guidelines for domestic companies. On October 31, the Ministry of Environment, together with the Korea Environmental Industry & Technology Institute (KEITI), published the "Guidelines for Labeling and Advertising of Eco-Friendly Management Activities." Based on the principles of truthfulness in labeling and advertising, clarity of expression, specificity of subject, and completeness of information, the guidelines categorize corporate environmental activities into eight types and provide case studies and self-assessment checklists for each.
Sanctions against greenwashing ask companies to reflect on whether they have repeated exaggerations and falsehoods, not only to consumers but to themselves. As social concern over the climate crisis grows, companies have faced pressure to act immediately. However, messages that deceive consumers and society cannot be allowed to continue indefinitely. While it may be difficult to change the inertia shaped by circumstances overnight, the time has come to communicate objectively and based on substance.
by Editor N