The Greenwashing Hydra Strikes Again: How Greenlighting Damages Your Business and How to Avoid it
In June 2023, the Advertising Standards Authority (ASA) found energy giant Repsol guilty of greenlighting.
Thanks to some selective imagery, the company’s recent Financial Times ad portrayed it as far more committed to sustainability than it actually is.
And the thing is, Repsol wasn’t technically lying in its ad, because it does have some sustainability efforts going on. But by shining a spotlight on the “greener” activities, it manipulated readers by deflecting attention away from the company’s destructive practices.
And this is what greenlighting is all about: highlighting a company’s more sustainable initiatives while omitting the less sustainable ones.
So, why is greenlighting such a problem, and how can you avoid it in your business?
What is Greenlighting?
Greenlighting is one of the greenwashing hydra’s six heads. It misrepresents a company’s operations by spotlighting their green initiatives.
Planet Tracker explains it as “when company communications spotlight a particularly green feature of its operations or products, however small, to draw attention away from environmentally damaging activities being conducted elsewhere.”
So the issue isn’t that the information in the content is false—it’s that it’s incomplete. And that means it’s misleading.
In the case of Repsol, the company’s ad focused on their renewable hydrogen initiatives. But it conveniently left out their larger carbon footprint from their overall operations in oil and gas. This gave the impression that renewable energy products make up a large proportion of Repsol’s current or future energy products.
Why is Greenlighting a Problem?
Ethical Implications
Greenlighting doesn’t just mislead consumers; it also creates an unfair playing field for genuine sustainable companies. And this is often a David and Goliath-esque battle, where startups and innovators are up against fossil fuel giants with limitless funds and friends in high places.
This affects the growth of the scrappy, purpose-led companies the world needs, and slows our progress towards a more sustainable future.
Impact on Consumer Trust
Customers don’t like being misled—go figure. To quote the Harvard Business Review, “Greenwashing negatively impacts a customer’s experience with a company’s product or service.” And even the slightest drop in customer satisfaction creates an opportunity for a competitor to take the industry lead.
But disappointingly, HBR reports that big names guilty of greenlighting often get a free pass, with customers willing to forgive established businesses. Which means big companies can get away with a bit of negative press, maybe a fine, and carry on as usual. Not ideal.
Nevertheless, McKinsey & Co. claim that there is a link between how customers feel about a company’s sustainability claims and their spending habits. So honesty, transparency and continued improvements are the safer bet if you want to retain your customer base.
Environmental Impact
Greenlighting has real-world, real-serious consequences.
With every successful greenlight activity, environmentally harmful practices fly under the radar and continue at catastrophic levels. As is the case with Shell, which aims to continue expanding its oil and gas activities by 20% by 2030, despite communications that suggest a “greener” agenda.
But it’s no secret that the business case for sustainability is strong. So even if the environment isn’t your main concern, sustainable practices mean sustainable businesses. Simple.
The Consequences of Getting it Wrong
In Repsol’s case, the ASA ruled that the ad violated advertising standards and instructed them to take it down. And they’re not alone. Last year, HSBC faced a similar scandal, with their ads banned for misleading environmental claims.
But having ads removed for greenwashing is small fry, compared to the potential protests, social media backlash, and long-term reputational damage. What’s more, legal consequences for greenlighting are becoming stricter, with class-action lawsuits and huge payouts on the rise.
Whether it’s deliberate or accidental, watchdogs and civilians are more alert to greenwashing tactics. And although the damage isn’t always irreparable, prevention in this case is better—and easier— than deploying a cure.
4 Steps to Help You Avoid Greenlighting in Your Business
Avoiding greenwashing is really not that hard. As you’ll see, all it takes is honesty, authenticity, and proof.
1. Be Transparent
Transparency means clearly stating the sustainability aspects of your product or service. This should include not just the ‘green’ features but also areas where you might not be doing so well.
And an annual report is a great communication tool for this. It tells your stakeholders what the state of your business is, where you’ve made progress, and what’s left to improve.
Take Oatly, which lays all its cards on the table with a detailed annual report in PDF form, and an accessible, and fun web version. It’s a great example of not just highlighting the good, but being upfront about the not-so-good.
Oatly’s sustainability report makes all its data accessible to customers, promoting transparency. Source: Oatly
Selective disclosure is at the heart of greenlighting. By providing a complete picture, you’re respecting your audience’s intelligence and their right to make an informed decision. Remember that stakeholders value honesty and transparency builds trust.
2. Use Clear Language
In a not-too-distant past, words like “sustainable” and “eco-friendly” drew customers in. But these words have been overused and have lost their value.
What’s more, they’re so vague that they’re not even accurate. Because production needs energy and resources, so true sustainability isn’t even currently possible.
So to avoid getting tangled up in a greenwashing scandal, use unmistakable language that answers customers’ questions, instead of leaving them scratching their heads.
Overused sustainability terms that have no meaning. Source: Planet Tracker
3. Include Data
That’s not to say you can’t use the above terms, but you must give them context. Because by supporting your sustainability claims with concrete data, you tell the customer exactly how your product is more sustainable than the alternative, leaving no room for misinterpretation.
For example, instead of saying your packaging is made with “recycled content,” be specific and tell them how much—“70% recycled content” is very different from “10% recycled content.”
Being specific in this way adds credibility, respects the customer’s right to choose and helps them make data-informed purchases.
4. Seek Third-Party Certifications
Certifications also add credibility (credibility is key, if you hadn’t noticed by now). A seal of approval from reputable third parties like 1% for the Planet or Rainforest Alliance Certified shows that you meet or exceed high social or environmental standards.
And these aren’t just one-off acknowledgements—you need to maintain or improve your social and environmental efforts to keep your certification. Take Brewdog, which famously lost its B Corp certification when scrutiny of its workplace culture revealed unhealthy practices.
Third party certifications like these increase accountability and reassures your stakeholders that you’re true to your word. They’re proof that you’re serious about being sustainable, not just looking it.
Keep your Content Greenlight-free
Greenlighting is a deceptive practice that can have major consequences for businesses, consumers, and the environment.
And even if, like Repsol, you get off pretty lightly, producing and then fixing any content that suggests you’re greenwashing is still a costly business.
So make sure all of your messaging—images, products, and your written word—is a true representation of every corner of your business.
With transparency, ethical marketing, and a commitment to genuine sustainability, you’ll avoid the wrath of the greenwashing hydra and live to fight another day.
