Keep business clean from greenwashing

'Sustainable' and 'low carbon' are buzzwords. As national governments set targets and formulate policies to tackle environmental challenges, a growing number of companies are making voluntary environmental pledges as well. However, with little or no evidence and substantiation of these claims, the potential for 'greenwashing' - advertising or marketing spin in which green PR and green marketing are deceptively used - is immense, as has been demonstrated by the Bureau of Indian Standards (BIS) in the case of claims of so-called '100% biodegradable plastic products'. Government must develop clear guidelines and criteria on how companies should prove their environmental claims, having these claims checked by an independent and accredited verifier, and a robust environmental labelling scheme that is transparent and reliable.

A common approach with clear guidelines will help consumers to make informed choices and aid businesses that take environmental commitments seriously. Requiring businesses to back up claims of green goods and services will provide a level playing field. This will have the benefit of boosting competition among different providers and businesses. This, in turn, will help step up the pace at which economies transition to more sustainable production and consumption patterns. The capacity to credibly measure the environmental sustainability of businesses will add to the credibility of Indian businesses and products, opening global opportunities.

Given the size and diversity of the Indian market and the range of consumers and price sensitivities, regulatory oversight that is not heavy-handed but firm is critical. Self-reporting must be complemented with a robust compliance regime, with disincentives for greenwashing.