Report: Greenwashing represents "failed strategy"

Greenwashing represents a "failed corporate strategy" that consumers are increasingly quick to identify and condemn, according to a new report from web ratings agency Nielsen Online.

The new report, Sustainability through the Eyes and Megaphones of the Blogosphere, argues that firms that are guilty of overstating their green credentials are being routinely uncovered by bloggers.

Jessica Hogue, research director at Nielsen Online, said that those firms guilty of greenwashing where putting their brand image at risk. "When it comes to the environment, consumers are insisting on both transparency and consistency from the corporations they patronise," she said. "Consumer support depends on action as well as perceived sincerity and commitment."

The report, which analysed blog postings on the topic of sustainability throughout 2007, also found that bloggers are adopting a broad understanding of greenwashing that extends beyond simply uncovering false environmental claims.

For example, a quarter of posts on the topic dealt with firms undertaking actions that were contradictory to their green marketing claims, while over a fifth dealt with claims that may be accurate but were incongruous for the company or industry in question and 18 per cent raised the issue of how claims could be verified without regulated oversight.

The report also found that online buzz surrounding sustainability grew 50 per cent in 2007 with bloggers' interest in the topic expanding from a focus on global warming to include a wider range of issues such as toxins, recycling and reducing packaging.

"As in many sectors, consumers are becoming increasingly vocal online about the issue of sustainability," said Hogue. "Blogger attention to related issues like pollution, toxins and sustainable agriculture reveal an important intersection between personal health and environmental wellness."