In recent years, the fear of being perceived as a “greenwasher” has hampered brands’ sustainability efforts—and sometimes even doomed them before they even get started. Executives consider sustainability campaigns too risky an endeavor.
It would be nice to be able to say that such fears are completely exaggerated or unfounded. But the truth is more complicated. For Kantar’s latest global Sustainability Sector Index, we asked people whether they had seen or heard false or misleading information about brands’ sustainable actions. Remarkably, 52% answered yes.
What does this look like by cohort? The data shows that the younger the cohort, the more pronounced the perception of greenwashing: 35% were 55-65 year olds, and 65% of 18-24 year olds. As Generation Z and younger Millennials become the dominant economic force, this loss of trust will have disruptive consequences.
In addition, we have found that the more brands are believed to be greenwashing, the less likely they are to be considered. It is only a small step from distrust to rejection.
A way forward
Let’s put things in perspective. What we’re really talking about is trust. A greenwashing brand is one that expects consumers to trust it on sustainability and then creates the impression that it has abused that trust.
But ultimately, does it really make sense that all brands in a category should give up trying to successfully build trust just because the trust of one brand in that category is declining?
Brands shouldn’t be afraid to pursue sustainability just because the term “greenwashing” now exists. What has actually changed is that brands now know they need to pursue sustainability the right way.
So how can brands take action to avoid greenwashing and build trust? Kantar’s globally verified Inspiring Trust model is based on the 3Is – three principles for what trust means today.
The first “I”, integrity, is about clear commitments: you do what you say you will do and communicate your actions honestly. Integrity is still the foundation of trust, but in today’s post-truth world, people have a hard time judging integrity, so integrity alone is not enough.
Identification – a connection on a human level – is one of the strongest sources of trust in times of upheaval and uncertainty. Behavioral science tells us that we naturally identify with and trust people who share our values and goals.
Finally, brands should embody the principle of inclusion. We know that unfamiliarity is a barrier to a closer connection between brand and consumer, so we need to create closeness in two ways: (1) make everyone feel like they belong; and (2) get people to buy into our actions. Successful brands make people feel like they can truly make better choices.
Integrity in action
Integrity means making clear commitments. In sustainability, these commitments must be credibly linked to your category and relevant to the here and now. For example, a Lufthansa campaign for 2022 vaguely claimed that the airline would protect the future of the world, which was portrayed through imagery of the underwater world. The problem is that such an image clearly contradicts people’s beliefs (they would not directly link air travel to the health of the oceans). To back this up, the brand should raise awareness of its actions, otherwise it risks being perceived as greenwashing.
Of course, climate pledges like “carbon neutral by 2050” and similar ones that have become so popular over the last decade impact a wide range of natural habitats, from pine forests to coral reefs. The problem is that brands’ sustainability targets, as communicated, are too broad to really reach consumers, both geographically and in time. People feel that 2050 commitments, for example, are so far away that they are not real commitments. They want to see action from brands now, in the form of more concrete, actionable commitments. So we need to create interim targets and provide regular updates.
Language also needs to be more tangible. Of course, lying or over-claiming is unacceptable, but vague terms are also problematic. People and increasingly regulators will not tolerate “carbon neutral”. Always try to be direct and back up claims with credible evidence and clear comparisons. Imagery should also avoid general cliches in favor of more specificity; a photo of your product on a green field is not enough.
Identification in action
The first step to identification success is understanding the challenge you face. Start with cynicism: 67% of respondents say they fear brands get involved in social issues purely for commercial reasons. While people will be critical, that doesn’t mean you shouldn’t talk about your actions. Today, 57% of people feel it’s really hard to tell which products are ethical or good or bad for the environment, which is a real source of frustration. But it’s a frustration people want solved. Consumers want to better understand their choices, and your brand needs to tell its story in a way that helps them do that. If you don’t, the perception of your brand is likely to be poor.
The best sustainability stories are authentic, honest and informative. To be authentic, you need to commit to more than just making symbolic, time-limited gestures. Today, for example, brands that change their logos to rainbow colors during Pride but do nothing to support this community the rest of the year will face negative consequences.
Messages that are successful are those that are simple but direct and even a little humble. Every company and brand is changing, but few have the courage to talk about it openly. You don’t have to have all the answers: be honest about the journey you’re taking. Consumers will thank you.
Inclusion in action
Inclusion seeks to create a sense of belonging. It is about finding ways to involve consumers in your sustainability programs rather than keeping them at a distance.
Today, only 37% of people believe that brands represent people like themselves or their community well. This fact obviously has implications for diversity, equity and inclusion efforts, but it also has implications for pricing strategy. 68% of people currently believe that products that are better for the environment and society are more expensive; in other words, that sustainability is a luxury. Such beliefs can lead to suspicions of “greenwashing,” that brands are ultimately using sustainability as a profit driver, rather than truly answering the call to help people live more sustainably.
So inclusion can be about making it easier for people to make better choices and ultimately make a difference. Today, people are skeptical about whether their actions make a difference: only 39% say they are clear about how their purchasing behavior can contribute to positive environmental or social change. Third-party certifications can help to dispel some of this confusion: 61% of people want these certifications to help them make decisions. In other words, don’t invent your own logos, that adds to the confusion. Partner with recognized players. From there, make it clear how your efforts empower people to make better choices, while avoiding the impression that you are putting the responsibility for sustainability solely on the shoulders of individuals. Our data shows that people reject brands that don’t take responsibility.
Rather, it is about the journey together, a journey that is only possible through trust.
This article was originally published in the Kantar BrandZ Most Valuable Global Brands Report 2024.
