The impact of greenwashing on poverty in developing countries
Greenwashing, also known as green sheen, is the latest marketing spin, implemented by not only fast fashion companies, with which it is arguably primarily associated, but also by other companies, such as hotel chains or even the food industry, to persuade the public to invest more in their products or to help them save up funds. Some companies also use it to cover up their harmful tactics toward the environment. This article will explore greenwashing’s impact on poverty in developing countries.
What is Greenwashing?
Despite this term sounding modern, Environmentalist Jay Westerveld coined it in 1986. It refers to companies that ‘purposely mislead consumers with their environmental claims’ and try to ‘capitalize on the growing demand for environmentally sound products, whether that means they are more natural, healthier, free of chemicals, recyclable, or less wasteful of natural resources.’ An example of greenwashing, and one of the very first tactics ever used, is when hotels ask their guests to reuse towels in the name of trying to implement greener policies when it is to save up on laundry costs.
An even more alarming example is energy companies, known to be one of the biggest carbon emitters companies. They claim to be environmentally friendly and pressure the public into being more environmentally friendly by encouraging them to make environmental pledges, such as promising not to use certain plastic products when really, using paper straws instead of plastic does not significantly reduce ocean pollution caused by oil, which these companies are responsible for. If individuals are concerned about their actions, they are less likely to notice these tactics.
Different Greenwashing Tactics:
Vague terminology, Words such as ‘100% sustainable’ or ‘eco-conscious’ are just slapped on products with nothing to back them up. It is unknown who approved these companies and their products.
Companies that are known to pollute are suddenly eco-friendly to improve their image. Once again, there is nothing to support their statistics. Fossil Fuels will never be suitable for the environment, no matter what companies promise on various socials.
Fabricated data. Some companies will invent their statistics to make themselves look better.
False associations. Certain companies may assert that a third party has verified their eco-friendliness statistics, which happens to be a branch of their own company.
Imagery. If a product is wrapped in cardboard instead of plastic or has pictures of trees, flowers, or any natural landscape, the public will likely think it is eco-friendly. Some companies will use such designs on purpose to mislead customers.
Here is a more specific example of what to look for:
Regarding food brands, labels use keywords such as ‘GMO-free,’ ‘far-fresh,’ and ‘organic.’ But they need verified qualifications to back these claims up.
Suppose a product is genuinely organic or any of the prior keywords, it will have any of the following stamps: USDA organic, Certified Humane, Non-GMO project verified, Certified Fairtrade International.
Greenwashing’s impact on poverty in developing countries.
Recent increased attention on environmentalism and greenwashing only tends to be towards the U.S., Europe, and Oceania. Therefore it primarily benefits wealthier communities, while poorer communities struggle to access sustainable products, creating a cycle of wealth inequality and worsening the gap in people’s well-being between developed and developing societies.
Greenwashing disproportionately affects impoverished communities, particularly in terms of food. Poorer communities may have limited access to high-quality products, which leads to economic inequality and negatively impacts people’s health. While wealthier countries are at the forefront of sustainability efforts, developing countries need these solutions the most. However, developing countries often have to take on loans or grants to pursue greener economies.
An example is green growth, which refers to ‘fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies.’
Developing countries play a crucial role in achieving global green growth in two main ways. Firstly, they are highly affected by environmental damage, such as climate change, and rely heavily on natural resources for economic development. This puts them at greater risk compared to advanced economies. They face challenges like energy, food, water insecurity, climate change, and extreme weather. They also suffer from pollution, poor water quality, and diseases caused by climate change, which hinder their development. Secondly, although developing countries currently contribute less to greenhouse gas emissions than wealthier nations, their emissions will increase if they continue with conventional economic growth patterns. Developing countries are becoming significant global economic growth and emissions sources, leading to a higher demand for natural resources.
Environmental degradation’s potential economic and social impacts are especially relevant in developing countries. These nations are more likely to experience adverse effects from climate change, putting their communities and ecosystems at risk. Moreover, their reliance on exploiting natural resources for economic growth makes them a prime target for greenwashing, as companies may attempt to present unsustainable practices as eco-friendly.
Cambodia’s Green Growth Road Map and Ethiopia’s National Development Plans are examples of countries working towards green growth.
Greenwashing companies have implemented every tactic to make the most money possible, using other methods besides green sheen.
For example, such companies will use cheap materials, making clothes fall apart after mere months of purchasing them, encouraging buyers to buy more and more to replace those clothes that are now unwearable. Clothing purchase rates have increased by 60% in the last fifteen years.
These clothes end up mostly in landfills located in developing countries. For example, author Maxine Bedat has visited the Kpone landfill near Accra, Ghana.
Other tactics include underpaying workers, employing children, and base erosion and profit shifting (BEPS), when multinational companies reduce their tax obligations by shifting profits to low-tax jurisdictions and exploiting loopholes in international tax rules. Developing countries tend to have less strict laws regarding legal minimum wage and minimum age to work. Such countries are so impoverished that people are willing to take low-paying jobs that force them to work long hours in horrible conditions.
An example of a country affected by greenwashing is Brazil, which The World Bank categorizes as a ‘middle-income country,’ with a rise from 400 to 2300 products claiming to be eco-friendly in only five years. This has led to a ‘rowing skepticism among Brazilian consumers on the honesty of the environmental claims.’
To summarise, multinational corporations that use greenwashing often exploit local resources and labor, worsening poverty. This practice misleads consumers and diverts attention and resources away from local businesses and initiatives that could genuinely address poverty. Moreover, greenwashing creates a false sense of progress, shifting focus from systemic issues and impeding comprehensive efforts to combat poverty and promote environmental sustainability. In short, greenwashing perpetuates poverty by exploiting resources, undermining local businesses, and hindering genuine poverty alleviation efforts.
Statistics:
Companies that commit greenwashing will likely use certain buzzwords when marketing their products. One oil industry company used the word’ climate change’ from 22 to 326 from 2009 to 2022.
Steps taken to address this matter:
Creating websites that detect greenwashing.
Organizations such as WWF have decided to tackle this issue by informing the public about greenwashing and how to spot it. If more people are aware of this issue, then they know which companies not to support.
Businesses can use sustainability audits to review their water, energy, and waste production usage. They can also participate in certification programs to assess their performance, how they can improve, and where.
Organizations such as carbon trust help companies calculate and reduce their carbon footprint.
Public pressure: publically challenging companies who claim to be eco-friendly. For example, they can sign petitions or directly respond to their posts on social media. In addition, one can make a direct complaint to ASA.org. All you need is proof, such as a photo from the company’s advert, and to fill in a form.
Unfortunately, there isn’t a straightforward way to stop greenwashing. Most solutions revolve around raising awareness and looking into which companies one is supporting, but ultimately it is up to the company itself to look at its tactics and behavior towards the environment and realize they need to make a change.
Conclusion
Greenwashing is an issue that has been around for decades, and while it is impossible to eliminate it, there are still organizations willing to fight it. The main tactic is educating the public on what it is and how to spot it, so they can make informed decisions when choosing which companies to invest in and support.
To alleviate poverty caused by greenwashing, it is crucial to implement regulatory measures, promote consumer education, and support independent certifications. Strengthening regulations against deceptive marketing practices can deter companies from greenwashing while educating consumers about identifying genuine environmentally friendly products can empower them to make informed choices. Additionally, promoting independent certifications and eco-labels helps consumers distinguish authentic, sustainable products and supports businesses committed to transparent and ethical practices. By combining these approaches, we can mitigate the impact of greenwashing on impoverished communities, fostering a more sustainable and equitable marketplace.