Many Canadians are concerned about climate change and the environment. It is very likely that environmental representations could influence a consumer’s decision to buy a product or service and therefore deemed “material representations” subject to consumer protection legislation. It is crucial to ensure that environmental promises are not misleading or false. Environmental claims should not be vague, overbroad, or unsubstantiated. They must be specific and easily verified. Recently, environmental claims have been classified as a performance claim. It is important that they are based upon proper and adequate testing, in accordance to the Competition Act requirements.
The temporal scope of environmental pledges is a significant challenge. They are often extended over many years and are based on variables that are likely change over time (including applicable regulations and supply chain constraints, availability of municipal programs, facilities, etc.). It is therefore important to properly qualify an environmental pledge, especially a long-term one, to account for this variability. It is equally important to create and implement a credible plan that can be used to monitor, anticipate, and overcome any challenges that could affect your ability to adhere to your pledge. Your plan should be integrated into your supply chain. To do so, supplier agreements need to clearly outline your respective suppliers’ obligations in connection with your environmental claims but also need to make it clear that compliance is being relied on to support environmental claims (such that non-compliance will trigger indemnification obligations that cover regulatory enforcement and private actions).
Organizations can make a commitment to a certification program to help them develop a plan and a pledge to achieve it. Certification marks can also add credibility to environmental claims and help to define the claim’s scope. They won’t eliminate all risks. Again, to reiterate – the keys to success are: Be specific. Be verifiable. Be committed. Be committed.
Blacklisting can be caused by greenwashing
Greenwashing refers to the use of misleading or false environmental claims. It is used to portray a product or service as having greater environmental benefits than it actually has. Greenwashing is sometimes obvious; for example, a “100% biodegradable” statement that is not true. It is often more subtle; for example, calling a product “eco-friendly” when it is merely recyclable. Companies can make claims about being an environmental ally but they cannot over-promise or under-deliver. Greenwashing is the art of making broad environmental claims while ignoring the underpinnings.
