Consumers are more wary these days about what has become known as “greenwashing” – the issue of false and misleading environmental claims. Regulators in Canada and the U.S. have become re-engaged to this issue, media has reported extensively on these claims and various groups and government are developing solutions.

The problem in the past, according to TerraChoice, a research firm that has conducted “Sins of Greenwashing” studies since 2007, is that many companies have stretched the truth in their pursuit to deliver what consumers demand. As firms compete for the attention of consumers and for profit, they will innovate and leapfrog one another in that pursuit. So, as consumers demand greener products and companies race to meet that demand, they will advance the cause of environmental sustainability dramatically; perhaps more rapidly and efficiently than any governmental intervention ever has or could produce.

But competition and free markets need good information if consumer demand is to have anything but superficial effect, TerraChoice says in its latest report. The watchdog group looked at two areas:

• Home and family, since these are the products that give consumers a daily opportunity to use their purchasing to make a “greener” world; and,
• Constructive findings and implications of the research (notwithstanding the general conclusion that greenwashing is, still, a significant problem).

While still considered a problem, greenwashing is declining and that’s good news. The fastest improvements are coming from the building/construction industry, TerraChoice says, adding that there is considerably more use of legitimate certification than with other categories. The group also suggests that the decline in greenwashing might be due to companies getting better with experience, and in response to continued consumer scrutiny.

ECO-LABELLING

The last three years have seen more growth in “greener” home and family products than has ever been seen before. As green claims have soared so has consumer scrutiny, the demand for better evidence of claims and – consequently – the demand for third-party endorsement. Environmental standards and certification (“eco-labels”) emerged as one protection against greenwashing in the 1980s wave of green product launches. In fact, the International Organization for Standards (ISO) established best practice for eco-labelling more than a decade ago, in ISO 14024.

Environmental standards and certification will be essential to continuing progress in “greener” products. Ironically, the potential importance of eco-labels has led to a proliferation of them, and to a multitude of types and degrees of meaningfulness and integrity. In last year’s Sins of Greenwashing study, TerraChoice recognized this problem as a new sin: the “Sin of Worshiping False Labels.”

WHAT WAS FOUND

Legitimate green standards help fight greenwashing. Of products certified by an ISO 14024-based program more than 30 percent were sin-free (compared to the 4.4 percent study wide result). In other words, good eco-labelling helps prevent (but doesn’t eliminate) greenwashing.

False eco-labeling is increasing. The use of fake labels (a sin first identified in 2009 and dubbed the “Sin of Worshiping False Labels”) is increasing. More than 32 percent of “greener” products found in this study carried such a fake label, compared to the 26.8 percent in 2009.

False labels are a dime a dozen. Ease of access to false, completely meaningless eco-labels has become almost comical. By searching “certified green” at many stock image websites, TerraChoice found meaningless false eco-labels downloadable for only a few dollars.

BUILDING PRODUCTS

Since Canadians spend most of their time indoors, it’s small wonder that the green building movement has been so strong in recent years. Families increasingly understand that indoor environments impact their health (and especially the health of more vulnerable people like kids, seniors and patients).

And we know that the way we build, power, and heat our homes, offices and other buildings has significant impacts on the external environment.

In this study TerraChoice examined a total of 729 building and construction products, the kind that are found at typical big box DI Y retailers. These products made a total of 1,726 “green” claims.

WHAT WAS FOUND

Very strong “green” growth. With 108 percent more green products in 2010 than in 2009, building and construction products are being greened more quickly than the rest of the marketplace (a study wide increase of 73 percent). At the five DI Y specialty stores re-visited this year, the average increase in green product offerings was almost 138 percent. At the two stores that have been studied three years in a row, the three-year increase in green product offerings averages 410 percent.

Less Greenwashing. At just over six percent, the proportion of “sin-free” products in this category is slightly but meaningfully higher than the all-product study result of 4.4 percent.

“Hidden Trade-Offs” are Unusually Common. Compared to a study-wide frequency of 27.4 percent, almost 40 percent of building and construction products were found to commit the “Sin of the Hidden Trade-off”. The most common of these single-benefit claims included: air quality (100 products); energy (61 products); and, recycled content (41 products).

Improved use of legitimate STANDARDS. Although the study wide result showed a decline in the use of legitimate eco-labelling from 23.4 percent in 2009 to 19.8 percent in 2010, the reverse was true in this category. Perhaps because of their greater maturity of “green” attention in this space, 31.7 percent of products turned to legitimate eco-labels. The most credible certifications include Energy Star, GREEN GUARD , UL Environment and EcoLogo.

KEY LESSONS FOR GREAT GREEN CLAIMS ON DIY BUILDING/CONSTRUCTION

Enough already with the exaggeration. The most unique problem in this category is the “Sin of the Hidden Trade-off”: starting with one good environmental thing, and claiming to be “green” on the strength of it. “Green” is a ladder, and a long one. Water, energy, toxics, recycled contents are each just rungs. Be proud of each step, and expect your customers to reward you (they will), but don’t mistake a rung for the top. (And invite your customers to join you on the climb, which builds long-lasting relationships.)

Keep certifying. Certification schemes are rapidly maturing in this category. They will become easier to access, more standards will be available (UL Environment is developing a number of standards in this space), and you can expect greater leverage through retailers and non-competitive partners.

To purchase a copy of Ontario Home Builder - Trends 2011, click here.