Dr. Fabiola Schneider, assistant Professor in accountancy at the University College Dublin (UCD) School of Business recently wrote, ‘As the urgency around climate change grows, companies are increasingly eager to communicate their sustainability efforts to a public that is more environmentally conscious than ever. However, a growing concern has emerged: greenwashing.
This practice, where companies overstate or misrepresent their environmental commitments, undermines the efforts toward genuine climate solutions and can distort the public’s perception of progress toward sustainability. When companies greenwash – making bold claims about their environmental impact without backing them up with tangible results – they mislead investors and other stakeholders. Greenwashing not only erodes trust but hinders effective policymaking and resource allocation toward companies genuinely working to meet sustainability goals.’
This practice recently made the news as Ireland’s consumer-rights watchdog is one of twenty global organisations that warned fashion retailers not to exploit consumers’ concern for the environment.
The warning came in the form of an open letter to the sector, published by the International Consumer Protection and Enforcement Network (ICPEN), a global network of consumer-protection law-enforcement authorities.
According to the Competition and Consumer Protection Commission (CCPC), the letter sets out principles to help fashion retailers when making environmental claims and aims to ensure that traders comply with consumer-protection laws.
While the fashion sector is booming, increasing attention has been brought to the impressive range of negative environmental impacts that the industry is responsible for. The fashion industry is the second-biggest consumer of water and is responsible for 2 to 8% of global carbon emissions.
What’s more, 85% of all textiles go to the dump each year, and washing some types of clothes sends significant amount of microplastics into the ocean.
The authorities advise fashion retailers to avoid vague and general terms. For example, refrain from claiming without evidence that an item of clothing is ‘conscious’, ‘green’ or ‘sustainable’, as this is unlikely to be true for a product in a polluting industry like the textile industry. Instead, retailers are urged to stick to accurate claims backed up by certification.
The letter also states that instead of making claims about future aspirations, marketing should focus on the specific measures a trader is already taking. A detailed claim about a goal relating to a particular fabric is less likely to mislead consumers than a broad, aspirational claim such as ‘we are committed to a better world’.
For example, while reducing the amount of water used in making jeans can be a positive improvement, the reduction could constitute a small fraction of the overall emissions and negative environmental impact of the production of the jeans. The improvement should then not be given undue emphasis in the marketing, according to the letter.
The letter sets out principles to assist fashion retailers when making environmental claims, aiming to raise standards and ensure traders comply with consumer protection laws.
- Avoid vague and general claims
- Do not overstate the significance of environmental measures
- Avoid claims based on data that is not sufficiently specific to the product
- Avoid use of self-made labelling schemes and misuse of third-party certifications
- Be specific when using ‘sustainability’ filters in online stores
- Focus marketing on specific measures already being taken, rather than future aspirations
NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.
