CorpComms Magazine

Companies not building sustainability into the core of their business model risk accusations of greenwash, according to a study by independent business analysts Verdantix.

'The Murky World of Green Advertising' found that marketers who overlook the complexities of a sustainability strategy in the hunt for tag lines and soundbites often open companies up to criticism from industry bodies and environmental watchdogs. 

Firms' environmental claims are increasingly falling foul of Advertising Standards Agency regulatory rulings. Oil giant Shell was accused of breaching the truthfulness clause of Committee of Advertising Practice (CAP) codes, with the claim, 'We use our waste CO2 to grow flowers,' when just 33 per cent of their waste CO2 was used. 

Car manufacturer Renault also got a roasting for an advert claiming a new range of electric vehicles produced 'zero emissions' which was deemed misleading as electricity to charge the car would have to be sourced from the grid, generating carbon emissions, and the advert was subsequently banned by the ASA. 

Under intense scrutiny from regulators and NGOs, companies today face the challenge of moving away from targeted CSR messages and discrete social and environmental campaigns to ongoing sustainability communications.

Jim Nail, principal analyst at Verdantix, said: 'Rising interest in sustainability performance with employees, investors and customers has forced corporate sustainability marketing out of the Green Ghetto of CSR reports targeted exclusively at environmental NGOs and socially responsible investors.' 

David Metcalfe, director of Verdantix , said: 'Firms face risks and opportunities created by sustainability performance rankings, SEC climate change risk disclosure guidelines, water scarcity issues, scrutiny of conflict minerals in the supply chain and ill-defined eco-consumer trends. 

'Agencies urgently need to respond with deeper domain expertise and engagement from senior communications advisers that reflects the need to delve into the long-term impact of sustainability trends on brand equity.'

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