Sustainability Communicators Warned to Avoid ‘Implied Benefits’ to Stay Clear of Greenwashing Allegations

The fundamentals of advertising and marketing that were taught in university classrooms for decades are flawed and could result in a lawsuit in today’s era of greenwashing, says veteran sustainability communications counselor Suzanne Shelton.

Brands that are committed to being good stewards of the environment need to tell their stories rather than greenhushing, but the messaging must be accurate.

“You will be cooler, sexier, happier … smarter if only you will buy this product or service. That is how traditional advertising works. It is all about implied benefits,” Shelton, senior partner at ERM Shelton, told attendees at the annual Sustainable Brands conference in San Diego this week.  “But when you apply that same approach to sustainability, that’s when you end up in court.”

A vocal advocate for brand storytelling on sustainability topics, Shelton’s appearance came at a perilous time for corporate communications professionals tasked with bolstering reputation with consumers, investors, employees and other key stakeholders.  Regulators have sued brands in both the United States and Europe, accusing them of intentionally making misleading claims over the sustainability of products and services.

So far in in 2024, 20 airlines have been taken to task by European regulators for overstating the percentage of sustainable aviation fuel used by their fleets, and for not using clear enough language over purchasing carbon offsets. A beverage maker was the subject of a U.S. Securities and Exchange Commission settlement over the recyclability of plastic coffee pods. And the California attorney general sued an oil giant for claiming plastic recycling programs are ubiquitous when waste is more often sent to landfills or incinerators.

The rewards for companies deemed to be more climate-friendly are huge.

The $44 Billion Sustainability Opportunity for Brands, a report by Glow, TriplePundit and 3BL, estimates that U.S. brands could capture $44 billion in additional revenue by offering more sustainable products. The report was released in March 2024, following a survey of 3,000 US adults in November 2023. The survey found that 87 percent of consumers consider it important for businesses to act responsibly toward the environment and society. 

The report estimates that more than $9 billion of U.S. consumer spending on food and groceries will move away from brands with a poor sustainability reputation and toward brands that are perceived as leaders. 

At Sustainable Brands, Shelton referenced her firm’s own Global Eco Pulse research that revealed 80 percent of respondents have an improved opinion of a company that is reducing greenhouse gas emissions. Conversely, just 8 percent say they view a company negatively for cutting emissions.

“I think I can make a blanket statement that may not be our target audience,” she said, tongue planted firmly in her cheek.

The veteran agency owner urged attendees to ensure that their corporate “ESG house is in order” and that they are communicating on topics like recyclability and the third-party certifications on which their companies rely.

On the topic of greenwashing, Shelton said 29 percent of consumers are “savvy spotters” who are educated in identifying glorified climate claims and willing to call out bad actors.

“These are people that are actively working to put their wallets where their values are,” she said. “So, 29 percent of the population out there, if you greenwash, they’ll put you on the bad list and it'll be really hard to get off.”

Even brands working to save the planet and accurately communicating about progress can make improvements, Shelton maintained. 

“Have you ever seen copy that talks about sustainability being something for future generations?” she asked. “Next time you see that in your organization, I want you to get a red pen and cross through it.

“Who the hell are those people?" she continued. “They're just like some future people, but my kids, my grandkids, like that's personal. These are people that I've been up for every day, sworn to protect and love.”