Shopping for a Better Future
By Emily Cruz, January 21, 2023
Since there is customer focus on “going green,” some companies are responding by reportedly increasing sustainability initiatives while doing very little, also known as “greenwashing.”
Let’s face it, the world is changing, and consumers are responding to it. The effects of climate change are already manifesting in ways that are largely visible across the broader public. Every day, people are faced with the climate reality and one way they are responding is via sustainable shopping. Rather than go out and look for clothes that make you solely look good, people are looking for labels that make them feel good too. Recent studies by Simon-Kucher & Partners have stipulated that consumers are thinking more about the effects the companies they utilize have on the environment. While it is great to see that consumers are changing their habits in the name of sustainability, unfortunately, companies are taking advantage of less savvy consumers by falsifying their green initiatives. Due to this, it is necessary for the government to take action to reduce this false advertising, and help consumers make more informed decisions.
New and old companies alike are responding to the change in consumer trends by highlighting their “sustainability” efforts on their websites, packaging, and advertising. For example, the relatively new shoe company Allbirds has become a substantial success, turning from startup to a hundred-million-dollar revenue generator in a few years, due in part to their marketing focus on sustainability. On their website they feature details about their carbon footprint and sustainability initiatives. However, not all companies including sustainability in their marketing are actually making tangible changes. Since there is customer focus on “going green,” some companies are responding by reportedly increasing sustainability initiatives while doing very little, also known as “greenwashing.”
Greenwashing is when a company labels its products as “green” or “sustainable” without making any tangible changes to its products. Based on a study done by the EU, 42% of the 344 companies analyzed used statements such as “conscious,” “eco-friendly,” or “sustainable” in a deceptive way. Two companies in the fashion industry that are notorious for greenwashing include Zara and Shein. While these companies advertise that they are making strides toward sustainability, they are the epitome of “fast fashion.” They produce clothes cheaply, invoking both environmental harm and humanitarian justice abuses, and they are constantly refreshing their stores with new and updated styles, urging their customers to purchase “more and more” rather than buying high-quality clothes and limiting excess purchases. Due to claims like these, it is necessary that governments take action to ensure that customers are being protected from deception. However, the current policy landscape is limited.
Within the United States, there are currently very few avenues to combat greenwashing. While there are some non-binding guidelines by the FTC, these do little to prevent companies from making untrue claims. Though some companies are facing threats from class action lawsuits alleging greenwashing, it should not be up to individual citizens or non-profits to hold corporations accountable. There must be overarching binding federal laws that ensure compliance with true and honest sustainability marketing. Early in 2022, the SEC proposed rules that would require public companies to release carbon disclosure requirements. This would give increased visibility into whether public companies (including clothing companies) were actually achieving their climate and sustainability commitments. If passed, this would make a great first step; however, more is required. There should be clear and simple labeling guidelines for products that consumers have readily available when they are making a purchase. There should be federal rules that define monetary punishments for greenwashing. And beyond this, there should be active participation by the government in seeking out and punishing those who defy greenwashing regulations.
It is increasingly apparent that consumers want to feel good about their purchases. Let us make sure that the companies making tangible strides to improve our environment and our world are the ones who are actively benefiting from this change in consumer trends. Implementing greenwashing prevention legislation will allow consumers to make more informed choices about how their purchases impact the world around them. In applying greenwashing policies, consumers will be empowered to make purchases that are better for them, and the environment.
Change The Chamber is a bipartisan coalition of over 100 student groups, including undergraduates, graduate students and recent graduates. Contact Change The Chamber at changeuschamber@gmail.com.