Even though as a society we have been on alert about the #CrisisClimática for decades, the increase and severity of its effects in recent years—such as the fact that “the global surface temperature has risen more rapidly since 1970 than in any other 50-year period over at least the last 2,000 years” (1) (2023)—have shown the urgency of limiting #cambioclimático.
According to Boston Consulting Group -BCG (2022), “71% of people in Latin America consider #sostenibilidad a relevant topic in their daily lives” (2), and Deloitte (2021), in its publication The impact of Covid-19 on consumer behavior and future outlook, states that “81% of consumers believe that companies should have a purpose that responds to socially relevant issues” (3).
In recent years, companies’ growing interest in responding to the planet’s needs and improving their reputation and competitiveness has driven corporate commitments to implement better environmental, social, and governance practices within sustainability reports and #ESG. According to KPMG (2023), by 2022, 69% of companies in Latin America produced sustainability reports (4).
However, tied to this rapid growth and the lack of regulation, sustainability reports and ESG frameworks lack sufficient standards and metrics to demonstrate real impacts. A study by Boston Consulting Group -BCG (2022) shows that “only 10% of companies measured their emissions comprehensively (scope 1, 2, and 3) in 2022, compared with 9% in 2021” (5). This is how two risks arise that threaten to undermine genuine sustainability efforts: #Greenwashing and #Socialwashing.
See also: Toward a sustainable future: why measuring the carbon footprint matters for companies.🌎
What is Greenwashing?
It is the practice in which companies spread and base their communication strategies (reports, campaigns, briefings, advertising, labels, etc.) on false, exaggerated, or misleading information about their true environmental performance.
What is Socialwashing?
As with Greenwashing, Socialwashing is a practice in which companies present themselves to their stakeholders under a false perception, but in this case, associated with being socially responsible.
How to avoid Greenwashing and Socialwashing?
In some cases these practices are committed out of companies’ ignorance about how to communicate their sustainability efforts correctly, although they also occur voluntarily as strategies to “improve the company’s image” without actually carrying out such actions, or based on hiding/distorting material information about the impacts generated by and associated with the company’s operations.
Without a doubt, it is essential and encouraging that more and more organizations are adopting better practices and reporting their sustainability actions; but likewise, our capacity as companies and consumers must increase to prevent these practices from detracting credibility and impact from the measures that genuinely contribute to solving environmental and social problems.
That is why we share 3 keys to avoiding Greenwashing and Socialwashing:
Key 1
Build reports and communications with the principles of transparency, materiality, and truthfulness as their pillars, to ensure that selective, false, or undocumented information is not being disclosed. To this end, as a company you can follow standards, methodologies, and tools that help measure, manage, and report impacts, such as the GHG Protocol, the ISO standards, the @Global Reporting Initiative (GRI) standards, the B Impact Assessment @Sistema B, and the SDG Compass.
Key 2
Research and analyze concrete actions. As a society, from our various roles, we must take an informed and critical stance on the information we consume regarding sustainability. In this way, it is necessary to investigate reliable sources to determine what the real practices, verification methodologies, and foundations are behind labels or statements where companies call themselves -green-, -ecological-, -sustainable-, -with community impact-, or -allied with some social movement-; and whether they are truly significant in relation to the company’s impact. Sustainability labels or seals created by private entities that are not certified by a third party (an accredited verification body or governments) are greenwashing.
Key 3
Demand. Be selective as consumers and prefer those brands with solid data on their sustainability, as well as require regulators to exercise greater oversight of market competition based on sustainability. If companies that carry out misleading practices fail to achieve results and, on the contrary, are penalized, it will help curb this problem.
By applying these keys, the transition toward sustainability can be properly assessed, and the reach of the highest-impact and most innovative practices can be continuously improved and expanded.
If, as a company, you are committed to constantly improving your sustainability practices and to communicating them in a well-founded and transparent way, at CarbonBox we can support you effectively and reliably in measuring your impact and estimating your #huelladecarbonoempresarial. Learn about our services and schedule an appointment with us here: https://www.carbonbox.app/
(1) Sixth Assessment Report (AR6) of the Intergovernmental Panel on Climate Change. (2023). IPCC.
(2) Consumer Sustainability Survey. (2022). Boston Consulting Group.
(3) The impact of Covid-19 on consumer behavior and future outlook. (2021). Deloitte.
(4) Big shifts, small steps. Sustainability reporting in Latin America 2022. (2023). KPMG.
(5) 2022 Carbon Emissions Survey, CO2 AI. (2022). Boston Consulting Group.