Over half (54%) of UK consumers would stop buying from a company if they were found to have been misleading in their sustainability claims, according to research from KPMG.
The poll of more than 2,000 UK adults showed almost half (45%) had heard of the term ‘greenwashing’.
More than three quarters (76%) of respondents agreed that false or misleading claims about the sustainability of specific products was the clearest example of greenwashing.
Other popular examples of what consumers believed constituted greenwashing included: exaggerated or unsubstantiated sustainability credentials (73%); misleading commitments on net-zero (66%); inconsistent ethical polices (60%); andmissing sustainability targets (39%).
The energy sector (58%) was seen as the most likely to engage in greenwashing, followed by the fashion industry (57%). Transport and car companies (51%) were next followed by grocery, food and agriculture (47%).
A third (33%) of respondents said they were sceptical of green labels and sustainability claims, while 28% admitted to struggling to know what products were sustainable due to inconsistent labelling. Fairtrade (73%) and Rainforest Alliance Certified (44%) had the highest awareness ratings, while initiatives like the carbon reduction label (9%) were recognised by far fewer people.
Earlier this month the Carbon Trust launched a set of new carbon labels, including two focused on emission reductions. The labels will replace the Trust’s carbon neutral scheme which, like all such claims, has come under fire in recent months following a series of scandals involving the carbon offsets bought to achieve neutrality, as well as criticism from regulators in what they see as poor transparency in some claims.
Richard Andrews, head of ESG at KPMG in the UK said the research showed companies and consumers were caught in a Catch-22.
“On the one hand customers are prepared to stop buying something if it has been linked to greenwashing, but they also admit that they struggle to navigate the labels currently out in the market. Meanwhile, companies are investing time and money verifying their efforts, but awareness of some of the environmental accreditation schemes remains very low.”
Companies are currently extremely wary of making green claims as regulators try to clamp down on misleading ones. Some lawyers feel the guidance offered to businesses so far is inadequate and as such companies will be easily caught out or afraid to communicate at all (so-called greenhushing).
KPMG’s research showed 18% of consumers have changed their mind about a company due to misleading green claims. And 54% would stop buying products and services from companies found to have greenwashed, while 38% would stop investing in them.
Andrews said companies can capitalise on interest in sustainable products but should be wary of “overselling” credentials. “While this might often be unintentional, understanding the data behind any sustainability claims is key […] if brands are serious about avoiding any greenwashing risks.”
