Greenwashing Risks and Risk Management - presented by David M.Scott, LEED®AP - Green Expo 2010

1. GreenWASHING Risks and Risk Management Presented by: David M. Scott, LEED®AP

2. We’re greener than green!

3. TerraChoice researchers surveyed more than 18,000 advertisements. The ones that made environmental claims were counted and described as a percentage of the total number of advertisements. Source: Environmental Claims in Consumer Markets, TerraChoice Environmental Marketing, 2009 “Green” Advertisements on the Rise

4. Green·wash (grēn'wŏsh', -wôsh') – verb: the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service Source: Scot Case, TerraChoice Environmental Marketing

5. “The Seven Sins of Greenwashing” 1. Sin of the Hidden Trade-Off 2. Sin of No Proof 3. Sin of Vagueness 4. Sin of Irrelevance 5. Sin of Fibbing 6. Sin of Lesser of Two Evils 7. Sin of Worshipping False Labels

6. 1. The Sin of the Hidden Trade Off Definition: Claiming a product is “green” based on one attribute

7. 2. Sin of No Proof Definition: Claim that cannot be substantiated by readily accessible information or a reliable third party certification.

8. 3. Sin of Vagueness Definition: Claim that is poorly defined or so broad that it is often misunderstood by the consumer.

9. 4. Sin of Irrelevance Definition: Claim that may be truthful but is unimportant or unhelpful for consumers seeking environmentally preferable products.

10. 5. Sin of Fibbing Definition: Claims are false.

11. 6. Sin of Lesser of Two Evils Definition: Claim that may be true but distracts consumer from greater environmental impacts of category as a whole.

12. 7. Sin of Worshipping False Labels Definition: Claim that gives the impression of a third party endorsement where no such label exists Examples: - Image that looks like an official seal of approval

13. Sins of the Seven Sins?

14. Greenwashing Litigation Koh v. SC Johnson & Son, Inc., Case No. 09-00927 (N.D. Cal. 2009)

15. Greenwashing Litigation Paduano v. American Honda Motor Co., Inc.,169 Cal. App.4th 1453 (Cal. App. 4th Dist. 2009) Mendez v. Intel, Case No. CV-09-2889 (N.D. Cal. 2009)

16. The Federal Trade Commission The FTC enforces Section 5 of the FTC Act, which generally prohibits "unfair or deceptive acts or practices," including advertising that is false or misleading. .”

17. Crime and Punishment

19. 3rd Party Verifications for Products

20. 3rd Party Verifications for Products

22. We’re greener than green!