The Advertising Standards Authority (ASA) is set to crackdown on ‘hot air’ greenwashing environmental claims made in advertisements amid confusion around terms such as ‘net zero’ and ‘carbon neutral’.
The advertising regulator has pledged to increase enforcement action surrounding greenwashing to make sure consumers are not misled by brands attempting to bolster their reputation with regards to sustainability.
A recent study by the ASA has found that consumers have become cynical due to struggling to understand environmental claims made by advertisers. Phrases ‘carbon neutral’ and ‘net zero’ have been reported to be the primary sources of misunderstanding. As it stands, there are currently no official definitions these terms and no fixed rules for how businesses should achieve these goals.
According to the advertising watchdog, clarifying and simplifying the definitions of these phrases as well as providing explanation around electric and hybrid vehicle claims, will be key in providing clarity and also regulating brands. Guidance on such claims will be available by the end of the year, prior to a six-month monitoring period.
The news comes a day after HSBC had an ad banned for failing to substantiate environmental claims.
To receive more marketing news just like this subscribe to our FREE daily newsletter
“The latest ASA report and research is a welcome development, although implementation and resultant greater clarity in green ads will take time,” Harbottle & Lewis law firm partner, Andrew Terry, told Marketing Beat.
“In the last few years, the ASA has been reassuringly proactive in trying to clamp down on blatantly misleading greenwashing ads.
“But there are many advertisers with good intentions who come unstuck because green terminology is inconsistent or easily misunderstood.
“So having clearer and standardised definitions for concepts such as carbon neutral and net zero – as well as around electric vehicles – would aid advertisers and consumers alike. The aim is admirable, but the range of interested parties in these issues will make reaching a consensus very challenging.”
ASA director of complaints and investigations, Miles Lockwood, added: “Our research shows that there is consumer confusion about the meanings and the evidence behind carbon neutral, net zero and ad claims for hybrid and electric vehicles. It also suggests there is a need for them to be simplified and standardised.
“All of which signals that while the UK public buy in to companies doing the right thing on the environment, they remain wary of ‘greenwashing’.
“We’ll act on these findings: updating guidance; sharing with Government and partners; reviewing the evidence and taking enforcement action where necessary; to ensure environmental claims aren’t just hot air.”
