Greenwashing: Sustainable Tourism Data + Regulations In Travel
/Our first blog on greenwashing in tourism looked at its definition, why it happens, problems greenwash causes, how to spot and avoid it, and how certification and accreditation can help. Our final point on what to do if you see it is an area which has developed greatly down to tourism data evidence opportunities:
Anti-Greenwash Data Evidence in Travel & Tourism
Of the ‘7 Sins of Greenwashing’, many like ‘No Proof’, ‘Vagueness’ and ‘Fibbing’ would just not exist if data were available to show evidence.
But historically in tourism, even if possible, it hasn’t been in practice. Why?
Greenwashing in Travel / image: greg rosenke on unsplash
1. Prioritisation/Resource: You don’t have to, so why would you?
Most organisations do not measure, collect, monitor and publish sustainability factual data on business operations, like they would for financial accounts, but this is what it takes.
One of Earth Changers’ strengths is to discern what is truly responsible and sustainable, for which we look at impact data – usually not public, potentially from multiple internal sources. This takes us prioritisation and time to do, working with organisations who prioritise the same.
Many organisations would say they don’t have the time and resource to dedicate, but with the rise in interest in sustainability, its integrity, Covid locked-down time, more anti-greenwash regulations and guidelines, and greater consumer interest, many are now impact measuring.
2. Awareness/Knowledge: You can't manage what you can't measure.
Covid’s enormous impacts in tourism include destinations and travel companies wanting to build greater resilience, and consumers feeling secure of that, plus greater connection with communities and nature. Question: What is, and how do you support and develop, resilience, community and nature? Answer: Sustainability (economic, social and environmental).
However, knowing where to start and how to develop a triple bottom line approach is beyond just deciding to prioritise it. Sustainability is a journey unique to everyone’s situation. You have to know where you are, where you want to go – and work out the way forward in between.
This is where certification and accreditation can fit in, to help create a baseline, learn and develop next steps to take, and give audience an indication of the journey.
However, often certifications only consider policies (what to do or not) and processes (how), not their outcomes. They can help organisations say and do the right things in the right ways to steer to sustainability, but, if not thoroughly implemented throughout supply chain operations they may not necessarily elicit impact, thus could appear to greenwash.
Greenwashing in Travel: Greenwash in tourism / Image: robert anasch, unsplash
3. Sustainability Data Capture: How do you evidence sustainability?
For the afore-mentioned reasons, it’s not surprising we’ve not seen more organisations capture outcomes. But with the rise in interest and action, we’re seeing tools develop to help this: taking things a step further on from certification, so anyone (undergoing a certification process or not) can understand what is measured, why – and outcomes and impacts of sustainability implementation can be captured.
That can be like us at Earth Changers, using stories and marketing that provides rich content to create a narrative accompanying data.
Or like our partner Weeva, who provide a digital platform for capturing, collating, comparing and analysing measurements for sustainability management with dashboard reporting for real-time tracking of negative and positive impacts.
4. Greenwash Guidelines: What can be done to prevent greenwash and ensure integrity?
Until now, sustainability has been largely driven by voluntary actions by suppliers from the bottom-up. But so has greenwashing, therefore, possibly inadvertently misunderstanding how to promote genuine sustainability in line with consumer protection rules, possibly intentionally wanting to appear to ‘go green’ for commercial benefit.
A study commissioned by the European Commission in 2020 found that over half (53%) of green claims made by companies were vague, misleading, or unfounded. Additionally, 40% of these claims were unsubstantiated, lacking evidence to support their environmental impact claims.
In addition, in the UK, it was also found four out of 10 (40%) 'green' claims made online could be misleading consumers.
Exaggerated, misleading, misinformation or unsubstantiated claims about sustainability credentials can undermine genuine efforts to sustainable development, erode confidence and trust in actual sustainable products, lead to even miscommunicated or misunderstood financials and opportunities, and damaging misallocation of resource - what Environmental and Social Governance is all about, to price risk.
greenwash in travel: Greenwash Guidelines // Image: zachary keimig, unsplash
Key issues to look out for include
- ‘Buzzwords’ and broad ‘absolute’ claims like 'green', 'sustainable', 'environmentally friendly' and 'eco' indicating no negative impacts across a full lifecycle and requiring much substantiation.
In the UK, the Advertising Standards Authority (ASA) ruled against Etihad Airways’ ‘sustainable aviation’ as likely interpreted by consumers as an absolute claim for the whole business: the reduction of single use plastics and efficiency of planes was deemed insufficient justification. Businesses need to make claims which are more specific where there is specific evidence.
- ‘Net zero’ and ‘carbon neutral’ claims which create high levels of consumer confusion. Claims must not ‘cherry-pick’ information to give the impression that a business’ climate impact is better than it is by omitting (non-sustainable) activities; where based on offsetting, this should be made clear to consumers including details of the scheme used; Supporting information must be close enough to the main claim so consumers can easily see it before they make a purchasing decision; and claims should be substantiated with robust documentary evidence calculated in accordance with recognised scientific frameworks.
Advertising Standards’ complaint to RyanAir’s “Europe’s Lowest Fares, Lowest Emissions Airline” advert was upheld, not just because of the scope in absolute terms (based on per passenger data) but also because the data was based on seating density which consumers would not know, and the data source used was from years before the advertisement.
- Claims relating to future goals (such as net zero or biodiversity targets) should only be made where based on a clear, verifiable and internally documented strategy to deliver them. These are more likely specific, short-term and measurable commitments in proportion to the business’ actual efforts.
Lufthansa’s #MakeChangeFly campaign ad featuring the slogan “Connecting the World. Protecting its Future.” was found lacking by the ASA as “currently no environmental initiatives or commercially viable technologies in the aviation industry which would substantiate the absolute green claim” as part of its targets to halve its net carbon emissions by 2030 and reach net-zero carbon emissions by 2050.
Greenwash in Travel: greenwash regulations / Image: sian wynn jones, unsplash
5. Greenwash Regulations & Non-Compliance Recourse: Are there legal requirements?
For the above reasons, we are seeing more legal regulations brought in or reiterated for:
- Sustainability marketing: to ward consumers against false claims under laws and standards that regulate areas of consumer protection and advertising.
- Sustainability classifying, reporting and disclosing: in Environmental and Social Governance standards for ESG-related actions, such as in initiatives for climate, resource use, circular economy, pollution and conservation objectives.
As we see more sustainability claims published, so we’ll see more risk and greater scrutiny, to address any unfair commercial practice and level the playing field for those making genuine claims.
Largely, these are so far attributable to UK and EU organisations where claims must be backed by data, offering full transparency and evidence, may require auditing and assurance, and demand real (concrete, measureable) reductions targets, not offsets.
However, reach isn’t confined to the EU/UK geographical boundaries: Global corporations that conduct business in these regions must also align their practices with the laws. This could include manufacturers, suppliers, retailers, or service providers across sectors, irrespective of size: more and more will feel the trickle-down ripple effects globally, especially as other countries follow suit.
Greenwash in travel: UK Green Claims Code / image: isravel raj on unsplash
Greenwashing Regulations
1. UK - Green Claims Code
There is currently no legal definition of ‘greenwashing’ in the UK and the main legislation governing sustainable claims is the Green Claims Code (2021) to help businesses understand and comply with their responsibilities.
It is a voluntary code of conduct, meaning businesses in the UK are only encouraged to comply, and is not new law, but flows from existing underlying laws: the (B2C) Consumer Protection from Unfair Trading Regulations 2008 (CPRs), (B2B) Business Protection from Misleading Marketing Regulations 2008 (BPRs) and the Advertising Standards Authority (ASA)'s rules.
It states 6 principles:
● Claims must be truthful and accurate.
● Claims must be clear and unambiguous.
● Claims must not omit or hide important relevant information.
● Claims must consider the full life cycle of the product or service.
● Claims must be substantiated.
● Comparisons must be fair and meaningful.
Fines for non-compliance of companies registered in the UK are at maximum up to 10% of global turnover and £300,000 pounds for individuals
The proposed Digital Markets, Competition and Consumers Bill also contains provision relating to the protection of consumer rights.
The Financial Conduct Authority is also working on updating Sustainability Disclosure Requirements (SDR) and investment labels for sustainable investment products.
greenwash in travel: EU Green Claims directive / greg jenkins, unsplash
2. The EU Green Claims Directive
Compared to the UK, the EU Green Claims Directive is binding legislation that businesses in the EU are required to comply with, although member states will need to adopt their own law. As such, it is seen as more stringent than the UK’s Green Claims Code, as it aims to create a single set of rules for all businesses operating in the EU to protect consumers and level the playing field for businesses.
Otherwise, there are many other legislations touching this area, such as Corporate Sustainability Reporting Directive (CSRD), Unfair Commercial Practices Directive (UCPD), Right to Repair Initiative, Sustainable Products Initiative, Circular Economy Action Plan (CEAP), Extended Producer Responsibility (EPR)…
The EU Green Claims Directive applies to all products and services marketed in the EU and sets out more detailed rules on the substantiation of green claims. Businesses must be able to provide evidence to support any claims they make using robust, science based and verifiable methods covering:
● All environmental aspects, environmental impacts or environmental performance covered by the claim.
● Underlying studies or calculations used to assess, measure and monitor the environmental impacts, environmental aspects or environmental performance covered by the claim.
● A brief explanation how the improvements that are subject to the claim are achieved.
● Companies must have any claims independently verified and supported with scientific evidence before communicating them.
● The verification process will be established and overseen by independent bodies under the control of EU member states.
● Standardised environmental labelling schemes: The (at least) 230 environmental labels in the EU lead to consumer confusion and distrust. New public labelling schemes will not be allowed unless developed at EU level, show higher environmental ambition than existing ones and get pre-approval.
● Offsetting: The EU Green Claims Directive also tackles claims relying on offsetting: companies should focus on reducing emissions in their own organisation or value chain
● Early Obsolescence: also banned will be commercial communications about goods features that limit durability if information is available on the feature and its effects on the durability; durability claims in usage time or intensity under normal conditions, if not proven; prompting the consumer to replace consumables, such as printer ink cartridges, earlier than strictly necessary; presenting software updates as necessary even if they only enhance functionality features; and presenting goods as repairable when they are not.
Fines for non-compliance will be set to at least at 4 % of the trader’s annual turnover handled by the Member State’s court system and there may be a temporary 12-month exclusion from public procurement processes and from access to public funding.
Micro businesses are exempt, to avoid a disproportionate impact on smaller enterprises (<10 employees and <€2 million turnover), unless they themselves wish to comply.
The Unfair Commercial Practices Directive additionally provides additional legal interpretation on key questions and topics including obligations in the travel and transport sector, consumer reviews and endorsements and influencer marketing.
Greenwash in Travel: Climate + resilience Law / charles etoroma on unsplash
3. France - The Consumer Code + The Climate and Resilience Law
This provides for a general provision prohibiting misleading commercial practices, including advertising.
The Climate and Resilience Law adds a specific provision under which misrepresentation of "the scope of the advertiser's commitments, in particular with respect to the environment, the nature, the process or the reason for the sale or the provision of services" can qualify as a misleading practice. It makes greenwashing a deceptive commercial practice with reinforced sanctions and mandatory display of an Eco-score on advertisements and products.
It requires the Autorité de Régulation de la Communication Audiovisuelle et Numérique to promote 'climate contracts' to forbid communications that favourably present the environmental impact of goods or services that actually have a negative effect on the environment and relate to
What is measured;
What is produced;
What is promoted;
What is monitored; and
What they raise awareness about.
The law also prohibits any advertising related to fossil fuels and new cars with set levels of carbon dioxide emissions from 2028; and subjects any claims of carbon neutrality to be supported by the advertiser's carbon footprint assessment over the entire life cycle of the product or service, made easily available to the public, along with the measures implemented to primarily avoid, reduce, and compensate for greenhouse gas emissions.
Breaching the Climate and Resilience Law can see the standard fine for all misleading commercial practices, being the higher of EUR 300,000 or 10% of the advertiser’s average annual turnover, plus up to 80% of the cost incurred for the advertising or the practice that constitutes the offence, advertising corrected and the penalty clarified on the organisation’s website.
Laws also provide for a name and shame mechanism through which a Court may order that its decision be communicated to the public by any means.
Greenwash in Travel: Climate Emissions / steven pecoraro on unsplash
4. USA - Climate Risk and Emissions Disclosure Rules (coming)
The United States is also taking more legislative steps towards addressing greenwashing and CSR transparency. The U.S. Securities and Exchange Commission (SEC) is finalising Climate Risk and Emissions Disclosure Rules, expected in 2024, to require public companies to disclose comprehensive climate risk and greenhouse gas emissions information.
In 2022, the Biden-Harris Administration took historic action to address greenhouse gas emissions and protect the Federal Government's supply chains from climate-related financial risks proposed the Federal Supplier Climate Risks and Resilience Rule, requiring major contractors to publicly disclose greenhouse gas emissions and climate-related financial risks and set science-based emissions reduction targets.
Previously, the Federal Trade Commission issued revised “Green Guides” designed to help marketers ensure the claims they make about environmental attributes of products are truthful and non-deceptive. Although the guides cover renewable materials and energy claims, ‘biodegradable’ waste, carbon offsets, free-of and non-toxic claims, they were last updated in 2012, since when responsible production and consumption and its communication has moved on significantly.
5. Other Countries
Others with anti-greenwash regulations include Australia, Canada, China, Hong Kong, Malaysia, Singapore and South Korea.
Beyond national regulations, we have to wonder if it is only a question of time before international initiatives standardise greenwashing laws: this is already starting in ESG reporting.
an end to greenWash in Travel? / image: jonatan pie on unsplash
A Conclusion to Greenwashing?
If you do business in any of the markets above we advise you to familiarise yourself with their specifics: whilst legal systems can be slow, the current legislations and regulatory frameworks around sustainability are still nascent, evolving, dynamic, and different everywhere.
That said, truthfulness, transparency, and accountability in claims are no longer optional but imperative everywhere, especially as sustainability grows ever more nuanced and greenwashing with it – into climate-washing, nature-washing, social-washing…
Businesses are going to require increasing resource to document robust evidence to make ‘green’ claims. Transparency is crucial and all claims must be specific and substantiated if you are to promote sustainability.
Failure to comply will result in not just a potential competitive disadvantage, where consumers seek responsible and sustainable products and services, but legal and financial consequences such as fines and access to finance limited as well as reputational damage.
Earth Changers advice is to
Have a rigorous system to measure, monitor and publish sustainability data evidence as soon as possible. A platform like Weeva (ask us about a discount!) can help understand, capture and collect data, store and monitor, publish, compare and report.
Review and audit marketing materials and sustainability claims.
For future goals, businesses can consider using various frameworks for setting targets, such as certifications or the Science Based Targets Initiative (SBTi).
Base on accepted methodologies and independently verif, for integrity: you may want to consider partnering with 3rd parties to support the process.
Finally, whilst much work for legal compliance may be required, it’s about opportunities to innovate and evolve, not burdens – for a continued and necessary shift to a more responsible, transparent and sustainable business environment, for travel to remain possible and in demand with increasingly conscious host destinations, consumers and other stakeholders – supporting loyalty for tourism to be sustainable in name, action, impact and evidence.
