Understanding the WFA’s New Guidance on Environmental Claims

BlueTriton—which owns about a third of bottled water brands in the U.S—is estimated to contribute hundreds of millions of pounds of plastic to U.S. landfills each year. The company recently said that its claims of being environmentally friendly are merely “aspirational.” This includes advertising the use of #1PET recyclable plastic which they tout to “keep plastic out of landfills.” However, there is overwhelming evidence that contradicts this notion that recycling cannot be the solution to the plastic problem.  

These types of claims can be deceptive because customers who are conscious of their environmental impact may purchase more of BlueTriton’s products under the guise that these products are more sustainable than its competitors and that the company itself is following sustainable business practices.  

Earlier this month, the World Federation of Advertisers (WFA) released instruction for brands on ways they can avoid “greenwashing.”  According to Investopedia greenwashing is the process of conveying a false impression or providing misleading information about how a company’s products are more environmentally sound. It can deceive consumers into believing that a company’s products are sustainable or environmentally friendly. But how can companies ensure that they are following best practices and can back up their claims of environmental consciousness? 

We will provide you with a thorough understanding of this new guidance and how you can implement it into your marketing practices. 

What Happened? 

This new sustainability guidance was developed in the context of the WFA Planet Pledge, a commitment made by various companies to use marketing as a vehicle for positive change, both within their companies and with the consumers who buy their products and/or services. The guidance is designed to help marketers, agencies and other stakeholders avoid the common pitfalls that can lead to misleading environmental claims.  

The  Global Guidance on Environmental Claims identifies six key principles that marketers need to follow to ensure they are viewed as trustworthy and to avoid accusations of greenwashing. 

Significance of Guidance for Marketers

When dishonest or misleading marketing is revealed, consumers become distrustful and may choose to bring their business elsewhere. Ultimately, it is in brands’ best interest to be transparent and cognizant of the impact of their claims.  

Last year, the Advertising Standards Authority (ASA) and Competition and Markets Authority (CMA) announced a crackdown and a series of inquiries on ‘greenwashing ads’. This guidance not only helps brands be authentic to their customers, but gives them the tools they need to be in compliance with regulations. Twenty-seven brands—that represent a total of $50bn a year in ad spending—have already signed up to follow the global guidance.  

Six Key Environmental Principles 

Misleading Claims:

Claims must not be likely to mislead, and the basis for them must be clear. Marketers should consider: 

1. Presentation 
2. Signs & Symbols  
3. Substantiation  
4. Broad vs. Narrow Claims 
5. Interpretation 
6. Having No Impact Claims 

Holding Robust Evidence:

Marketers must hold robust evidence for all claims likely to be regarded as objective and capable of substantiation. Marketers should make sure that for all claims, they have: 

1. Substantiation 
2. Evidence 
3. Independently assessed evidence 

Omitting Information:

Marketing communications must not omit material information. In order to not mislead consumers, marketers must not leave out any information, including: 

1. Clarification 
2. Qualifications 
3. Product-related claims 

Full Lifecycle of Product:

Marketers must base general environmental claims on the full lifecycle of their product or business, unless the marketing communication states otherwise, and must make clear the limits of the lifecycle. Marketers should consider the following: 

1. Qualification level 
2. Specificity 
3. Business-related claims 

Product Comparisons:

Products compared in marketing communications must meet the same needs or be intended for the same purpose. The basis of comparisons with other companies should be clear to the consumer: 

1. Nature of comparison 
2. Substantiation  
3. Methodology 

Information Required by Law:

Marketers must include all information relating to the environmental impact of advertised products that is required by law, regulators, or Codes to which they are signatories. 

How Can Brands Ensure They Are Complying?  

So, what can your brand do to make sure that it is compliant with this guidance? 

1. Establish a strong relationship between your marketing and sustainability teams. 
2. Make sure that your claims are all up to date. 
3. Have strong systems in place for evaluating the accuracy of sustainability claims. 
4. Be cognizant of the way that claims read to consumers and whether those claims. 
5. Accurately depict your brand’s current sustainability. 
6. Don’t market claims that are “mostly” or “technically” true. 

While this development in environmental claims can be stressful for brands, it provides an opportunity for ‘green’ businesses to be rewarded for their sustainability efforts. If you’re interested in learning more about how your brand can become more sustainable, please contact the Longview team.