Introduction
Climate pledges are being used more than ever by businesses to demonstrate their commitments to combating the climate crisis and transitioning to a more sustainable society.
However, these terms may frequently cause confusion among consumers and could be misused for greenwashing purposes. It is, therefore, essential for individuals to accurately understand what such terms represent in order to be informed consumers. Businesses, on the other hand, should effectively align their sustainability goals with marketing strategies.
Climate Pledges
According to the Global Sustainability Study 2021, there has been a substantial global paradigm shift in consumers’ perspectives on sustainability and willingness to pay for sustainable products and services.
Globally, 85% of consumers said they had changed their purchasing habits to be more sustainable in the last five years, while 60% said sustainability was an essential purchase criterion.
As the demand for sustainable products and packaging rises among consumers, so does the need for companies to update their codes of conduct. At the time of writing, more than 400 corporations have pledged to achieve net-zero emissions by 2040, indicating that the private sector is under increasing pressure.
With that said, businesses have started to incorporate “climate pledge” into their advertising strategies. The goals are to demonstrate their commitment to sustainable business practices and attract consumers who are environmentally conscious.
The samples listed below are those that are typically found in regular business communication, such as on a product label, a company’s website, or an advertisement.
Carbon-neutral
The concept of carbon neutrality revolves around achieving a balance between the amount of CO2 emitted and the amount of CO2 removed from the atmosphere. The Greenhouse Gas (GHG) Protocol recommends assessing a company’s carbon neutrality across three scopes (direct and indirect emissions from operations, supply chain, and product use) as demonstrated below.
Carbon-offset
Similarly to carbon-neutral, carbon offset involves compensating for one’s carbon emissions by investing in projects that reduce emissions elsewhere. This could involve supporting renewable energy initiatives, reforestation projects, or improving energy efficiency.
Net-zero
Net-zero is tied to the 2015 Paris Agreement: in order to meet the 1.5°C global warming target, global carbon emissions should reach net zero by mid-century. Every five years, countries are expected to publish their Nationally Determined Contributions (NDCs), which must outline their long-term plans for achieving net-zero emissions and their emission reduction targets.
Climate-positive
Climate positivity goes beyond carbon neutrality by actively removing more CO2 from the atmosphere than is emitted. IKEA, for example, has pledged to be climate positive by investing in renewable energy and carbon capture projects, and emphasizing sustainable practices throughout their supply chains.
Eco-friendly
The Natural Step Framework (TNS) is a sustainability framework that aims to create a more balanced relationship between human activities and the natural environment. The ideas and goals of TNS can be seen in eco-friendly products, which are made to have as minimal a negative effect on the environment as possible by using fewer resources, employing renewable materials, or applying non-toxic production methods.
Recycled materials
Products labeled recycled are made from waste material or previously used items. It is closely related to the “Circular Economy” model, which aims to reduce resource waste and maximize resource usage by reusing and recycling materials. Both of these concepts aim to encourage responsible resource management as well as less waste generation.
Sustainably-sourced
This refers to goods that are obtained in a way that has little impact on the ecosystem, preserves natural resources and promotes social responsibility. Consumers who value sustainably-sourced products may also consider fairtrade options (i.e., fair prices, no child labor, gender equality, community development and sustainable farming practices) to support both environmental sustainability and social fairness. Both sustainably sourced products and fairtrade place an emphasis on responsible and ethical practices throughout supply chains.
Those pledges are excellent attempts to encourage responsible consumption and production, which is central to the UN’s Sustainable Development Goal 12, “ensuring sustainable consumption and production patterns, [..] sustaining the livelihoods of current and future generations”.
Things to Consider
While it is encouraging that businesses are adjusting their objectives, goals and labels to support the climate movement, there are some issues that must be addressed.
A recent report released at the COP27 climate conference raises concerns among citizens, consumers, environmentalists and investors around the possible use of net-zero pledges for greenwashing purposes.
One example would be the advertisement that HSBC ran prior to COP26. This advertisement promoted a tree-planting initiative as well as its net-zero goal, but it failed to mention that the company also sponsored fossil fuel projects at the same time. As a result, the advertisement was banned since it failed to include important information.
Another example, the fast-fashion retailer H&M was sued for “false” and “misleading” marketing because its closed-loop recycling campaign gave consumers the illusion “that old clothes are simply turned into new garments or that clothes will not end up in a landfill”, which indeed “would take H&M more than a decade to recycle what it sells in a matter of days.”
The examples above suggest that marketing professionals working for such organizations may lack sustainability literacy as well as transparency in sharing information. On the contrary, businesses may simply want to capitalize on this hype in order to appear more appealing and confuse their consumers with half-baked promises.
Whether intentional or not, brands that are exaggerating or falsifying their sustainability credentials need to be put under public scrutiny and even challenged legally to hold them accountable and stop the violations.
Practice Makes Perfect
As there is a potential that these climate-related terms could be employed deceptively, what can we do to bring them back on track and increase our trust in sustainable marketing campaigns?
Thankfully, there are climate action tracking organizations around the world serving as watchdogs for climate pledges and initiatives, such as Climate Action Tracker (CAT), Carbon Disclosure Project (CDP) and Carbon Trust, to name a few.
Yet, it is necessary to have some understanding of those climate pledges in order to exercise sound judgment. As customers, we have learned that when a company claims to be net-zero or carbon neutral, it must include not only the company’s direct CO2 emissions but also its carbon footprint in other indirect paths.
If a product is labeled “recycled” or “eco-friendly,” our awareness of the circular economy might prompt us to follow the product’s supply chain to verify how it was sourced and recycled before we can completely trust it.
We can also look to third-party certification for validation. Certifications such as the Forest Stewardship Council (FSC) for responsibly sourced wood products or the Marine Stewardship Council (MSC) for sustainable seafood are reliable indicators that a product is sourced sustainably in its industry.
We can always do a bit more to discover the true meaning of the marketing claims on the goods we buy. The bottom line is to be critical of green statements and educate ourselves on the various ways to become informed consumers and avoid falling victim to greenwashing.
On the other hand, companies may make mistakes during the process, but when there are too many meaningless slogans and marketing blusters, it will demotivate and undermine companies that are actually striving for the protection of the planet, as well as raise doubts about the integrity of these climate pledges in general.
The COP27 report proposed the following five guidelines for corporations to follow in order to maintain the integrity of their commitments: 1) having a reduction path towards 2050; 2) aligning commitments with actions and investments; 3) sharing relevant, non-competitive, comparable data on plans and progress; 4) being based on science and third-party accountability, and; 5) honoring equity and justice in all actions.
Best practices can be identified through implementation and continuous improvement. The more corporations that make true, meaningful efforts to aid the global fight against climate change, the more likely the business world will gravitate toward sustainability and the more trust customers will have in them when it comes to promoting their commitments.
