Discover the Power of the Green Guides: Valuable Principles for Marketing Claims

This is the fourth article in a 4-part series on transparent, accurate environmental claims. Additional articles in the series include:

• Part 1: Beyond the Buzzwords: Why Accurate Environmental Claims Matter
• Part 2: Unmasking Greenwashing: How to De-Risk Your Brand
• Part 3: Life Cycle Thinking: The Best Tool to Help Brand Leaders Master Sustainability

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PART 4 - Discover the Power of the Green Guides: Valuable Principles for Marketing Claims

I started writing this article solely from the lens of environmental claims, with the intent of educating brand leaders about the Green Guides. But as I dove in, I realized that the principles in the Green Guides, which are published by the U.S. Federal Trade Commission (FTC) and provide guidance to help companies avoid deceptive claims, apply far beyond environmental claims. In reality, they lay out a broad set of principles all brand leaders can adhere to, no matter our topic.

The Green Guides are a tremendously useful tool to help your organization communicate clearly and transparently. And as consumers, many of us seek to buy products that are better for the environment — my hope is that this article makes you a more informed buyer.?

There are three principles in the Green Guides introduction that should inform all marketing claims:

• Marketing isn’t just what you say – it’s what you imply. Look beyond your messaging and consider what you may be insinuating across labeling, marketing, promotion, and advertising. Words, symbols, logos, depictions, and product brand names are all elements that contribute to direct and implied messages.
• Deception is evaluated by a reasonable interpretation. Consider how a “reasonable consumer” would interpret your marketing claims. Deceptiveness is dependent on a consumer’s “net impression” of the advertisement. Even if your specific words and statements can be validated, what is the overall takeaway of the communication?
• All claims need to be truthful and supported. It is a brand’s responsibility to determine that the claims made (explicitly, implicitly, or unintentionally) are accurate and supported with data or proof. While these Green Guides principles are written to apply to environmental claims, they are all too often ignored in many facets of marketing today. Heeding these principles within communications builds consumer trust.?

[Disclaimer: I am not a lawyer, and this article in no way constitutes legal advice. Please seek legal counsel if you have questions.]

What are the Green Guides?

The Green Guides were first written in 1992 as a response to the increasing number of companies making environmental claims that were vague or misleading. According to the FTC, “Sometimes what companies think their green claims mean and what consumers really understand are two different things.” Updated three times since publication, most recently in 2012, the guidance includes 1) general principles that apply to all environmental marketing claims; 2) how consumers are likely to interpret particular environmental claims; 3) how marketers can substantiate and qualify their claims to avoid deceiving consumers.

Violations of these principles can result in the FTC taking action against companies, either by banning the advertising or issuing fines. Additionally, consumers can sue companies for deceptive practices, and many have settled for millions of dollars.?

Here are some Green Guides highlights – note that if you remove the word “environmental,” most remain great principles for any marketing claim.?

• General, unqualified environmental benefit claims are deceptive. Claims such as “environmentally preferable” are vague, hard-to-interpret and often imply a huge environmental benefit or no environmental impact at all. Using the term “eco-friendly,” for example, would be deceptive unless it clearly and in close proximity states the product’s environmental attributes with evidence to support the statement.

• Qualifications and disclaimers must be clear, prominent, and visible. This means plain, understandable language and big font size so the text is legible and easily read by the viewer. Often, qualifications or disclaimers are in a tiny font and hard to read or understand.?

• Do not overstate or imply an environmental benefit is bigger than it is. The Green Guides give this example: Moving from 2% recycled fiber to 3% and then labeling the product as 50% more recycled content. This is deceptive.

• Comparative claims should be clear. Any statements of “more/most,” “better” or “-er” need to explicitly state what the comparison is to, whether that is an alternate product made by the same company or a competitor. Data must be up-to-date to continually ensure the claim remains accurate.

• Certifications and seals of approval must be legitimate. The brand cannot imply that a product, package, or service has been endorsed by an independent third party when it has not been. The use of a general logo or seal, such as “eco-friendly,” likely conveys that the product offers a general environmental benefit. A more appropriate use of a seal or logo, for example, would be the percent of recycled content, or the fact that the package is curbside recyclable. All claims made or implied via logos or seals need to be supported with data.?

• Compostable claims must be specific and validated. If using this claim, a business must have proof that the product breaks down into usable compost in a safe and timely manner. Additionally, if a product cannot be composted at home, the company must disclose that information and must make clear the availability of appropriate composting facilities.?

• Biodegradable claims must have proof of degradation within one year. Companies must specify how a product will degrade in the typical environment where it will be disposed of within a one-year timeframe. For example, a trash-bag company that labels its bags as “biodegradable” is deceptive because trash bags are more frequently disposed of in a landfill where they will not break down within one year. On the other hand, a shampoo labeled as “biodegradable” is not deceptive if the company has data that the shampoo will break down in the sewage system within a reasonable timeframe.???

• Recycling claims must be specific and accurately convey ease of recycling. Businesses must ensure that their recyclable claims accurately reflect the availability of recycling infrastructure and clearly state which part of the product or package the recycling claim refers to. The Green Guides state that if facilities are available to a “substantial majority” (which the FTC defines as more than 60% of consumers), businesses can make an unqualified recyclability claim.?

The Green Guides are a great resource because they offer several simple and easy-to-understand examples for each type of claim. The Green Guides are a useful, valuable resource, but they do not cover all aspects of sustainability — there are a lot of grey areas. The FTC is in the process of reviewing the Green Guides and is slated to release updated guidelines in 2024. These updates should provide more clarity on aspirational claims (benefits or environmental impact promised in the future); net-zero claims; “sustainable” claims; recyclable and recycled content claims; carbon offsets and climate change; and updated guidance on organic, sustainable, compostable, and degradable claims.?

How to use the Green Guides in all your marketing claims

• Read the Green Guides. Any marketer who is making environmental claims should be familiar that they exist, have read them, and understand the basic principles as well as the specifics that apply to the types of claims they are making (e.g. recyclable, biodegradable, compostable, etc.).

• Apply the Green Guides through a standard process. If your brand is making any kind of environmental claims, you need to create a claims-review process to evaluate accuracy, comply with the guidelines, and analyze relevant supporting data or evidence.

• Evaluate the perception of your claims. In the second article in this series on greenwashing, I argued that we need to understand whether the perception of what we say lines up with reality. The Green Guides attempt to outline this very thing. If you are not sure whether your claims are misleading, research your perception by talking to customers. It is difficult for us to assess how a “reasonable consumer” would interpret our marketing when we have an insider perspective.?

Here is a practical example that illustrates how to apply these principles:

I was working with a client who was launching a new product, part of which included a biodegradable material that represented about half of the product materials. The initial messaging for the product focused on how the product was “biodegradable.” Because the company only had data to support the biodegradability of half the product, I considered the message to be misleading based on the Green Guides’ principles of a reasonable consumer’s interpretation. As a result, we reworked the messaging to make it extremely clear which part of the package was biodegradable and in which conditions (in this case, water).??

This article wraps up our series on transparent and accurate environmental claims. My aim was to equip business leaders who do not have a large infrastructure for claims support to navigate this space with confidence. There are real risks to making statements that are misleading or cannot be supported. Accusations of greenwashing, lawsuits, and fines erode trust, cost money, and are a distraction to the business. Understanding the framework of life cycle thinking provides a critical foundation for understanding the core principles of sustainability and how environmental claims fit within the context of a product’s total environmental footprint. The Green Guides are a free and useful resource that provide specific guidance on how to communicate in a way that is not deceptive. Armed with this series, , my hope is that you are more informed, more equipped, and more motivated to communicate accurately and transparently about the environmental benefits of your products and services.?

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This article was first published on Core Impact's website here.

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Anne Oudersluys has a passion for building businesses through conscious, purposeful branding and marketing. She is the owner and chief brand strategist of Core Impact, which helps purpose-driven companies apply the best thinking in business strategy and marketing to grow their bottom line and their social and environmental good. Anne was formerly the sustainability brand manager for Procter & Gamble. You can contact her at [email protected].