Sustainable Public Procurement (SPP) and Greenwashing Nakahara Green... · Sustainable Public...

Sustainable Public Procurement (SPP)

and Greenwashing

Prof Hideki Nakahara

Chairman

International Green Purchasing Network( IGPN)

Green Trade International Conference 1st Nov 2013

Beware of GPP/SPP!?

I believe GPP/SPP has improved Consumer Behavior and created a Better World. If this is a lie, then no one believe in GPP/SPP. Green Washing is the just lie.

Green Washing is the presence such as termites that devour the house. So we have to clean the Green Washing.

[email protected] 2

GPP/SPP and Lifecycle Perspective

[email protected] 3

Scot Case, UL Environment,

Beware of Greenwashing

When a company, government or other group promotes

environmental initiatives or environmentally conscious

images but actually operates in a way that is damaging to

the environment or in an opposite manner to the goal of

the announced initiatives.

According to Greenpeace, greenwashing is used to

describe the act of misleading consumers regarding the

environmental practices of a company or the

environmental benefits of a product or service.

[email protected] 4

Examples of Greenwashing

Dont Be Fooled 2012: Companies to Avoid (The Green Life Online)

In honor of April Fools Day, The Green Life is

proud to announce the 2012 edition of our

report on greenwashing, Dont Be Fooled.

[email protected] 5

#1 American Natural Gas Alliance claims, in this ad, to be helping protect air, water, and land. But its pushing a dangerous new type of drilling across America, and fighting efforts to make it safer.Comment

[email protected] 6

#4 Fiji Water claims to be carbon negative and that every drop is green. In fact, the company bottles water in Fiji, ships it across the world, and creates lots of plastic waste. These claims are greenwashing.

[email protected] 7

Examples of international standards

As part of ISO 14000 series of environmental standards, the

International Standards Organization (ISO) set up a group of

standards to govern environmental labeling.

The ISO 14020 family covers three types of labeling

schemes:

Type I (ISO 14024): a multi-attribute label developed by a

third party

Type II (ISO 14021): a single-attribute label developed by

the producer

Type III (ISO 14025): an eco-label whose awarding is

based on a full life-cycle assessment.

Type I

Type II

Type III In addition to above standards, many other environmental

labels have been developed in electric/electronics,

constructions, food, and tourism industries.

[email protected] 8

Examples of preventive measures/actions

Australia

Environmental Claims in Advertising

and Marketing Code by Australian

Association of National Advertisers

Japan

Environmental Labeling Guidelines Easy-

to-understand and appropriate ways of

providing environmental information by

Japans Ministry of the Environment

[email protected] 9

Examples of preventive measures/actions

USA

Signs of Greenwashing

by TerraChoice/UL

UK

The Greenwash Guide

by Futerra Sustainability

[email protected] 10

10 sins of Greenwashing by Futerra

Sustainability Communications in UK

1. Fluffy language: Words or terms with no clear meaning, e.g. eco-friendly

2. Green products v dirty company: Such as efficient light bulbs made in a factory which pollutes rivers

3. Suggestive pictures: Green images that indicate a (un-justified) green impact e.g. flowers blooming from exhaust pipes

4. Irrelevant claims: Emphasising one tiny green attribute when everything else is un-green

5. Best in class?: Declaring you are slightly greener than the rest, even if the rest are pretty terrible

6. Just not credible: Eco friendly cigarettes anyone? Greening a dangerous product doesnt make it safe

7. Just not credible: Eco friendly cigarettes anyone? Greening a dangerous product doesnt make it safe

8. Imaginary friends: A label that looks like third party endorsement ... except its made up

9. No proof: It could be right, but wheres the evidence?

10. Out-right lying: Totally fabricated claims or data. [email protected] 11

7 sins of Greenwashing by TerraChoice/UL in USA

1.Sin of the hidden trade-off

2.Sin of no proof

3.Sin of vagueness

4.Sin of irrelevance

5.Sin of lesser of two evils

6.Sin of fibbing

7.Sin of worshiping false labels


1.Sin of Fibbing:

Environmental

claims that are

simply false.

2.Sin of Vagueness:

A claim that is so

poorly defined or

broad that its real

meaning is likely to be

misunderstood by the

consumer.

3.Sin of Irrelevance:

An environmental

claim which may be

truthful but is

unimportant or

unhelpful for

consumers seeking

environmentally-

preferable products.

4. Sin of No Proof:

An environmental

claim that cannot be

substantiated by easily

accessible supporting

information or by a

reliable third-party

certification.

5. Sin of the

Hidden Trade-Off:

A claim suggesting

that a product is

green based on a

narrow set of

attributes without

attention to other

important issues.

6.Sin of Lesser of

Two Evils:

A claim that may be

true within a product

category but distracts

the consumer from the

greater environmental

impacts of the category

as a whole.

7.Sin of Worshiping

False Labels:

A product that, through

either words or images,

gives the impression

of third-party

endorsement where

no such endorsement

exists; fake labels, in

other words.

Number of

Environmental Labels


According to Ecolabel Index

437 labels currently exist in 25 industries In 197 countries

How to Avoid Greenwashing

Comparing Eco-Labels

WARNING: Not All Environmental Claims Are Created Equal

Learn to ask about:

Validity of the standard

Standard setting process

Verification process


Actual Status of Greenwashing USA & Canada (contd)

2010 Sins of Greenwashing research* by TerraChoice/UL found:

5,296 home and family products researched made a total of 12,061

green claims.

Over 95% of greener products committed one or more of the

seven sins of greenwashing.

Compared to past researches*, greenwashing was slightly

declining:

Although the numbers were very small, the proportion of sin-

free products was increasing at a rate that is statistically

significant.

In fact, the number of sin-free products appeared to have

doubled in each of the last two years, from approximately 1%

in 2007 to less than 2% in 2009, and to almost 4.5% in 2010


Actual Status of Greenwashing USA & Canada

Greenwashing was also changing:

Sin of the Hidden Trade-off declined sharply from

2009 (71.3% of all products) to 2010 (27.4%).

Sin of No Proof increased from 56.4% of all

products to 70.1%, much of which was related to

BPA-free (and related) claims on toys and baby

products.

Sin of Worshiping False Labels increased from

23.3% to 30.9%.


Actual Status of Greenwashing Taiwan(contd)

Survey conducted in August to September 2010 by Taiwan Green Purchasing Alliance

Categories surveyed: Cleaning Products, Furniture, Toys and Paper Products

Sampling: Mostly from super markets (62%) and some from on-line stores (38%)


Actual Status of Greenwashing Taiwan


IGPN survey on greenwashing in the Asia-

Pacific region

In the Asia-Pacific region,

where dramatic social and

economic changes are taking

place, potential negative

impacts of greenwashing are

becoming a major concern.

No research has been done in

the region (except Taiwan)

Objective: To have proper

understanding of the current

situation and issues created by

greenwashing and the

existence of many

environmental labels in the

region.

Survey period: Spring

Summer 2012

Methods: Questionnaire to

collect information from

respective GPNs. Interview

with major retailers where

possible.

Countries & Areas: Hong Kong,

Taiwan, China, Korea,

Philippines, Thailand, Malaysia,

Singapore, Vietnam, Indonesia,

India, and Japan (retailers

interview only in Japan)


Questions asked

1. About demands for green products & Services

Demand trend Main factors of the trend Future trend

2. About availability of green products & services

Where theyre sold Types of green products &

services sold 3. About environmental labels

Actual status of type I, II and III labels Other major environmental

labels Numbers of environmental

labels Environmental literacy of

consumers

4. About awareness of greenwashing

Actual status of environmental claims

Trend of environmental claims Examples of greenwashing Awareness of greenwashing Whos voicing the concern

5. About preventive measures Trends of greenwashing Guidelines or Green Claims

Codes Watchdog bodies Appropriate environmental

claims 6. Roles of Governments and Other Organisations

Actions/measures taken by government

Roles of business and government

Possible solutions


Information found: examples of appropriate and

inappropriate environmental claims found (contd)

Product: Detergent

Advertising medium used: Package

Inappropriate environmental claim: Pro

environment, non-toxic, no pollution

Why it is Green Washing: Irrelevant, no proof [email protected] 28

Information found: examples of appropriate and inappropriate environmental claims found (contd)


Information found: examples of appropriate and inappropriate environmental claims found (contd)

Manufacturer: Fabindia

Source: http://www.fabindia.com/fabric-care/

Advertising medium used: Websites, pamphlets and brochures

Environmental claims: All of Fabindia's products are handcrafted using the finest natural fibers. The subtle variations in color, texture and finish are intrinsic to hand made products. The products involve crafts-based traditions of hand spinning, dying, weaving, wood block printing and embroidery. The company uses both vegetable dyes and commercial dyes with the goal of minimizing their impact on the environment while striving for the best colour properties.


Information found: examples of appropriate and inappropriate environmental claims found


Product: Washing-up liquid

Advertising medium used: Package Environmental claims: Meets the requirements of Green Mark label (type I label) and the national

standard CNS38000, and no use of heavy metal and

Nonylphenol

Information found: Malaysia(contd)

About demands for green products & Services

Demand for green products and services is on increase.

The main factors for the increase are: promotions by

government, media, businesses and NGOs. Awareness that it is

trendy to be 'green' or buy green, companies are using 'green'

issues to promote their products.

About availability of green products & services

Various shops sell green products, such as office and home

appliances

About environmental labels

Malaysia have SIRIM Eco Label, administered by Malaysian

Green Tech Corporation and SIRIM

Other major environmental label in Malaysia is FSC.


Information found: Malaysia

Actual status of greenwashing and awareness

Many environmental claims exist which increased a lot in the last 5

years.

Greenwashing exist

Varying degrees of awareness exist among consumers, business

community, government organisations, etc.

Higher degree of awareness exist among environmental NGOs

Lack of understanding of the term green by most people is

leading to the situation where words green or eco are being

loosely used.

Suggestion

The ecolabelling program is very important. GPNs from Korea,

Thailand, Taiwan and Japan are playing an extremely important role

in promoting the type I labels in their countries.


Information found: Retailers

A few major retailers in some of the countries were asked.

Very little awareness on greenwashing existed.


Summaries and recommendations(contd)

The number of environmental labels is likely to increase

further. This could pose a threat to the credibility of the

labels.

Watchdog bodies and green claims codes are already

set up in various European countries and north America.

Demand for green products and services have

increased in all the countries surveyed, and would

continue to grow in the future. The reasons are

governments green policies, concern for global

warming, and eco-boom. Environmental claims are also

increasing in all the countries.



Green products appear to be sold at various stores as

well as at shopping malls. Energy-saving products

appear to be the most widely sold green products. Other

major green products are recycled products and

organic foods.

Environmental labels, particularly type I labels, have

been developed in all the countries surveyed but the

levels of effectiveness and success are varied. The role

of type I label is seen to be highly important.

Many countries dont have the standards, guidelines or

watchdog bodies. Even if theyre set up, theyre not

utlised.



Greenwashing appears to already exist in the Asia-Pacific region but the awareness is very low and not seen as a problem. While interest in sustainability and the environment grows and consumers demand for green products and services increases, the lack of understanding for the term green leads to create greenwashing. This problem applies to both purchasers and suppliers . Many cases of greenwashing are believed to be unintentional. To prevent negative impact on green growth in the Asia-Pacific region, governments, businesses,environmental NGOs, consumer groups, and consumers need to recognise the respective roles and address greenwashing in a proactive manner



Encouraging and rewarding genuine efforts towards sustainable innovation is highly important. Lastly, an environmental NGO in Japan have started a project to prevent greenwashing. The aim is to build a social mechanism and to promote corporate behaviour guidelines to encourage appropriate environmental claims. It is important the outcomes of the project are disseminated through international networks and international institutions. We must take proactive actions to prevent further greenwashing in the region.


Thank you

Prof. Hideki Nakahara

Chairman, International Green Purchasing Network(IGPN)


Lets start examination on Green Washing!!


(1) Displaying ingredients and materials (contd)

Example 1. Display on soap packages

We think of the environment and recycle. This is a high quality soap made with recycled cooking oil.

When displaying information on the product indicating that the environmental protection has been taken into consideration, it is necessary to ensure that general consumers can clearly understand only the surfactant, part of the cleaning ingredient, is made from recycled cooking oil.


(1) Displaying ingredients and materials (contd) Example 2. Display on draining waste bag packages

Recycled materials used.

When displaying information such as this, it is necessary to clearly state the radio of the recycled materials used. Simply stating recycled materials used can lead to misunderstanding by general consumers that the product is made of 100% recycled materials.


(1) Displaying ingredients and materials

Example 3. Display on cling film packages

Recyclable carton with paper saw (80% recycled paper used).

As the radio of the recycled paper used is clearly stated, the reason for displaying the information is clear.


(2) Displaying the environmental impact is small (none) at disposal stage(contd) Example 4. Display on cling film packages

Safe cling film. Dioxin does not occur when incinerated. Environmentally friendly polyethylene product.

When displaying information such as this, the environmental protection needs to be actually effective where the product is disposed (because when disposed as household waste, it is incinerated with other wastes).


Example 5. Display on draining waste bag packages

(2) Displaying the environmental impact is small (none) at disposal stage(contd)

Environmentalist declaration. We reduce dioxin from waste. It is a draining waste bag that suppresses the generation of dioxin when incinerated.

When displaying information such as this, it is necessary to have carried out a test on the product and the information displayed has been proved.


(2) Displaying the environmental impact is small (none) at disposal stage(contd) Example 6. Display on synthetic laundry detergent packages

Main ingredient is of plant origin, and thus its environmentally friendly and kind to

human.

Its best for the environment and human, best for clothes and skin.

Main ingredient is naturally occurring and pure plant nature.

Cleaning ingredient is completely decomposed by bacteria in the nature, with high

biological decomposition rate, and kind to human, lakes and rivers.

It doesnt affect the environment and is a natural environmental protection product.

When displaying information such as this, it is necessary to have demonstrated that the ingredients of the product can be completely decomposed in the state of nature. Additionally, completely or best should not be used to indicate the consideration for the environment.


(2) Displaying the environmental impact is small (none) at disposal stage(contd) Example 7. Display on shampoo bottles

Charcoal Shampoo. It is now a naturalists shampoo thats kind to the earth because, after rinsing, the purifying effect of charcoal" also serves to drainage water.

It is necessary for the manufacturer to have obtained the empirical data as the basis of the environmental claim in order to display information such as this.


(2) Displaying the environmental impact is small (none) at disposal stage(contd) Example 8. Display on laundry detergent packages

While taking care of your skin, it demonstrates the powerful cleaning effect and quickly reverts back to the earth.

The environmental claim quickly reverts back to the earth is difficult for general consumers to understand the time it takes to completely decompose. It is necessary to show specific ingredients and figures based on the empirical data.


(2) Displaying the environmental impact is small (none) at disposal stage(contd) Example 9. Display on dishwashing sponge packages

Made with recycled PET bottle fiber and sponge that breaks down into soil. The sponge part uses a biodegradable sponge made from corn fiber. After use, if buried in soil, it will get naturally decomposed by bacteria and broken down into soil.

It emphases that such product eventually breaks down into soil. However, unless it does so rapidly in a normal disposal condition, its environmental superiority is doubtful.


(3) Environmental labels and displays of information in general (contd) Example 10. Display on cling film packages

(to show with the Good Design Award logo) xxxx Good Design Product Special Award Kind to the Earth Design Award

When indicating the environmental protection has been taken into consideration, it is necessary to clearly state specifically what part of the product is environmentally superior.


(3) Environmental labels and displays of information in general Example 11. Display on draining waste bag packages

(to show with Eco Mark logo) kind to the earth above the logo to clean water below the logo

When indicating the consideration for the environment with the logo such as this and the products environmental performance attributes to only part of the product, not the whole product, it is necessary to state that information in addition to the logo.


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