by James Di Fiore

Created on: July 15, 2008   Last Updated: November 30, 2010

As awareness of climate change increases among every day people, more and more companies are presenting themselves as clean, responsible stewards of the environment. Governments are drafting policies and creating tax incentives for cleaner business practices, and corporations are branding their identities to suit the new status quo - Green is the new Black.

Predictably, this new universal consciousness of 'going green' has created the opportunity to make the claim without actually delivering a cleaner product or service. This practice is now known as "Greenwashing'. Environmental groups created the term after noticing a trend within the energy sector to promote tax break projects through clever marketing strategies. Commercials from oil companies showing their commitment to investing in cleaner energy became the staple, yet environmental infractions by these same companies were still rising steadily. Project a greener image, but when it came to environmentally destructive methods, stay the course.

While energy companies are a glaring example of greenwashing, virtually all market sectors include businesses determined to tap into the new demand of the conscience consumer. This consumer group has breached 'niche' status and is now considered to be mainstream. Companies respond by utilizing third party non-profit organizations who serve as beneficiaries of each purchase. On the surface, this method sounds like a winning strategy, but all too often these surrogates are merely tax shelters who provide viable cover for substandard practices like poor sustainability and deplorable waste management.

A working example is the retail giant who donated 5% of ever item sold to forest conservation, all the while maintaining their policy of subcontracting clear cutting projects in order to produce their products. Not to be outdone, the food industry may be the worst violators of deceptive greenwashing tactics. Using terms like "All Natural" and "Organic" have pioneered shady communications directed at consumers looking for healthier choices. Unfortunately, many of these products still contain genetically engineered ingredients or anabolic steroids, creating a false identity and presenting their products under false pretense. Of course, the onus is always on the consumer to read ingredient lists, but more often than not, the artificial ingredients and engineered chemicals are missing and in many cases not legally required information for consumers.

In many ways, health regulators and business bureaus act as enablers for deceptive green-marketing strategies. Unchecked methods of misleading communications give no incentive for corporations to stop using greenwashing methods. Fortunately, conscience consumers are among the most savvy and are beginning to educate those who are new to the "all-natural" crowd. This new consumer group may turn out to be a tough fight for those who insist on diluting what should be a worthwhile venture for everyone - a cleaner, more viable marketplace. Time will tell.

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