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The Advertising Standards Authority (ASA) has found Shell guilty of ‘greenwashing’ with an advertising campaign themed ‘ready for cleaner’ that breached advertising guidelines.
The ASA ruled the petrochemical giant’s campaign was misleading as it left out information on Shell’s more polluting work with fossil fuels. The ASA banned the adverts from appearing in the future.
It’s the latest such breach confirmed by the ASA. This follows Tesco’s ban for a plant-based burger ad, a Persil advert, and two HSBC adverts. The ASA found all to be misleading in their claims of environmental benefits.
The ASA is the UK’s independent advertising regulator responsible for ensuring that ads across UK media stick to the advertising codes.
“Action like this to tackle inflated environmental sustainability claims is only likely to increase, as we see rising consumer and investor demands for products and services that fulfil sustainable objectives.
For example, companies who may have selectively highlighted some actions over others, or perhaps slapped a green label and a recycling logo on a product need to be aware that their customers are going to look below the surface to be sure that brands aren’t offering them empty promises.”
Victoria Holland, Partner and Head of Corporate and Commercial at RIAA Barker Gillette
The press has spotlighted corporate greenwashing in the financial services sector too. But, the Financial Conduct Authority has anti-greenwashing rules on its schedule for later this year. It intends to include them in its Sustainability Disclosure Requirements.
“Certainly, larger organisations need to focus on Environmental, Social, and Governance (ESG) ratings, as this increasingly drives investment decisions in financial markets. It is inevitable that this type of attention will filter down to smaller enterprises regarding consumer demands.”
Victoria Holland
The term ‘greenwashing’ was first coined by an environmentalist in the USA during the 1980s. However, it has only recently entered everyday use. Some of the examples highlighted as corporate greenwashing tactics include:
- Companies claiming that they have implemented positive ESG processes while the results or progress are yet to be seen
- Cherry-picking product attributes or data and ignoring others which would be negative in environmental terms
- Misuse of labelling schemes
The ASA and its sister organisation CAP (Committee of Advertising Practice) have published guidance. The guidance aims to help businesses comply with the ASA and CAP’s codes for broadcast and non-broadcast advertising, sales promotions and direct marketing communications. They also include postings on social media.
Contact Victoria Holland today.
Note: This article is not legal advice; it provides information of general interest about current legal issues.