Sustainability : Greenwashing - a challenge for business to manage

New Zealand Management, Sep 1, 2008 by Bryan Gundersen

Checklist: How to Make Green Claims

This checklist outlines what businesses should do before they make any 'green' claims about their products and services. However, this check list applies to green claims only, as a claim of 'carbon neutrality' requires a much higher standard of objective verification and certification.

* Keep abreast of changes or developments in climate change issues as it affects your industry and business;

* Identify relevant legislation, Codes or standards that affect green claims, such as:

- Fair Trading Act 1986 (Consult the ACCC's 'Green Marketing and the Trade Practices Act' document for guidance, available at http://www.accc.gov.au/content/index.phtml/itemId/815763)

- The Advertising Code of Ethics and Code for Environmental Claims.

* Make sure your claims are accurate and cannot be interpreted in a misleading way (get someone independent to review them and provide feedback as to how they read them);

* Make sure your claims are able to be substantiated - have on file up to date information so you are always able to back them up;

* Make sure your claims are specific, as general and absolute claims (such as 'environmentally friendly') are likely to breach advertising standards. If necessary, use terms such as 'environmentally friendlier' if you can prove your new product/ service is better than a previous product/service or is better than a competitor's;

* Always consider the whole product life-cycle of the product or service - this is commonly picked up by both the Commerce Commission and the Advertising Standards Authority;

* Develop appropriate management protocols and coherent communication channels within your business for any external green campaigns;

* Consult legal advisers.

Bryan Gundersen is a partner specialising in energy and resources, and Greg Shaw a senior associate specialising in competition and consumer issues, at Kensington Swan.