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It’s not just greenwashing we need to be concerned about

Nilesha Chauvet, Managing Director at GOOD comments on the CMA crackdown on greenwashing claims

We welcome news of the Competition and Markets Authority (CMA) crackdown on environmental and sustainability claims. At GOOD, we’re not surprised to learn that 40% of green claims made online could be misleading. In a world where misinformation is increasingly rife, we believe that marketing and communications across sectors needs to reflect an authentic commitment to creating a positive impact.

‘The Green Claims Code’, published by the CMA, is a step in the right direction. It demonstrates there’s a conscious effort being made to address misleading sustainability and environmental claims. We believe that the practice of overclaim is much wider than just greenwashing, however.

As consumers demand that brands and businesses go much further to demonstrate their commitment to positive impact, Purpose-washing is still evident. To create real value for both business and wider society, brands and businesses need to communicate true and authentic Purpose. Otherwise, real impact will be minimal and potentially damaging as consumers and, now authorities, take action to call out misleading claims.

Claims to Purpose need to be substantiated and rooted in authenticity and truth. There is space for immediate smaller initiatives and quick wins as brands and businesses begin their Purpose journey. There’s much to be said for doing something now. But to fully utilise the power of Purpose, creating real value for both the business and wider society, there needs to be a longer-term commitment.

Here are some of our key starter principles to safeguard yourself:

Remember your values and heritage

From the outset, ensure that your Purpose is relevant to already established values and heritage. It should evolve from existing truths and chime with your DNA for it to be authentic and real. Purpose should develop from what brands and businesses are good at and what they know and can credibly claim. Each organisation has its own story, purpose, and mission. Dig deep to find yours.

Size matters

Both internally and externally, the impact of your Purpose should be significant in relation to the size of your business. For example, a commitment or pledge to donate X amount of money should be compared to your profit, not just an arbitrary number.

Create with people not for people

If your Purpose serves people, whether that’s consumers, beneficiaries, employees, or anyone else, include them in the process. Listen, learn, and co-create with key stakeholders to keep it authentic and relevant.

Partner, Partner, Partner

If you are tackling a specific societal need or problem, partner with experts. Work with partners to enrich and validate your work.