Greenwashing – touting ecological benefits while hiding environmentally damaging practices – is something cleantech companies must avoid. And since cleantech companies, by definition, must make claims about the “cleanliness” of their solutions, they are particularly vulnerable to accusations of greenwashing.

The fact is: if you are marketing and selling products that claim to be “green,” “organic,” “sustainable,” “energy-efficient,” etc., you will be held to a higher standard. Prospective customers are more sensitized to all aspects of what you are doing from packaging, to manufacturing and delivery processes, to what vehicles your service people drive, and even to whether you stock and serve bottled water at your office. They’re on the lookout for whether you are “walking the talk.” Business consequences of making partially true claims or of claiming “virtue” in one area while hiding “vice” in another include:

• Getting “outed” by bloggers, activists or watchdog groups – leading to stagnant sales or even boycotts,
• Loss of credibility – resulting in customer skepticism about current and future claims of product benefits and elongating sales cycles,
• Damage to your brand or reputation,
• Derailing the conversation from the main benefits you’re selling and setting up additional obstacles to closing a sale,
• Possible regulatory action – in the U.S., the Federal Trade Commission (FTC) has the power to investigate advertising claims, force a company to halt a marketing campaign and/or fine a company for violating regulations. (The FTC has issued a “Green Guide” – FTC Part 260 – that governs environmental marketing claims and will begin to update it in January 2008.)
• More difficulty recruiting new talent – (see The Wall Street Journal article on How Going Green Draws Talent, Cuts Costs and my post of 11/27/07.)

So, how can you avoid being accused of greenwashing? First of all, be honest about your environmental claims. It’s not really possible to offer a solution that is completely “sustainable.” Some non-renewable resources will be used at some point. But you can avoid the “Six Sins of Greenwashing” described by Terrachoice Environmental Consulting, by making sure you:

• have considered the hidden tradeoffs when you make a claim (e.g., delivering solar energy solutions while polluting groundwater in a production process),
• have proof for your claims,
• are specific about your claims,
• make claims that are truly relevant to the product you are promoting,
• are not actively promoting what amounts to the lesser of two evils (perhaps exemplified by “organic cigarettes”).

Additional suggestions come from David Wigden’s thoughtful post on Defining Green Brand Leadership. He recommends, among other things, that companies be accountable, transparent and visionary in order to rise above the fray and take the ethical high road in their claims. Cleantech companies do not want to be accused of greenwashing. Luckily, such accusations can be avoided by thoughtful, responsible marketing communications.

Tags: Green Marketing, green opportunities

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