Greenwashing by Fast Fashion Brands: Are they really concerned about Environment?

In a recent interview with Vogue Scandinavia Greta Thunberg, the Swedish climate activist strongly condemned the fashion industry for being one of the biggest contributors to climate and ecological emergency.[1] Thunberg did not hesitate to call out the industry for its greenwashed campaigns stating that one “cannot mass produce fashion or consume sustainably as the world is shaped today. That is one of the many reasons why we will need a system change.”[2] The greenwashing referred by Thunberg in her interview is also known as ‘green sheen’. The term first coined by the environmentalist Jay Westervelt in 1986 refers to the act of  a company using “misleading or false claims to suggest it’s doing more for the environment than it actually is.”[3] With scientific reports as recent as that 2021 from the Intergovernmental Panel on Climate Change (IPCC) and others suggesting the irreparable damage caused by climate change, ‘sustainable’ and ‘eco-friendly’ fashion is the newest trend in the fashion industry. “Green is the new black, sustainable is the it look, and veganism is in while animal products are out.”[4] Thus, with an aim to sell their product to the climate-conscious Gen Z popular fast-fashion brands such as H&M, Zara, Mango, Asos[5] and several others have resorted to greenwashing, advertising their products as eco-friendly and sustainable even when it is not. The article aims to analyse the reason for the emergence of greenwashed advertising campaigns carried out by fast fashion brands and their impact on the targeted consumer base while exploring existing laws and regulations against greenwashing prevalent in the developing nations of the world.

WHY ARE FAST-FASHION BRANDS GREENWASHING THEIR CAMPAIGNS?                          

The demographic born between the years 1996 and 2010 is popularly known as Gen Z, while the oldest member of the generation is only 24 years old, in 2020 Gen Z became the largest generation surpassing Baby Boomers and Millennials.[6] This generation constitutes a whopping 32 percent of the global population, which approximately estimates to 2.47 billion out of the 7.7 billion human population on earth.[7] Having being born in the age of climate crisis the youngest and the largest generation is environment conscious and they want to purchase from brands that resonate with their values of being eco- friendly and sustainable. “But as some companies attempt to meet Gen Z’s demands for sustainability, others might merely be presenting a façade.”[8]  Greenwashing is a deceptive practice of branding adopted by companies that allows them to project themselves as environment-friendly even without them practicing any such legitimate sustainable operations.[9]

Image: Dribble[10]

While the motives of fast fashion brands remain the same – to sell more and to sell fast, the needs of their target consumer demographic is changing.  However,  even with the change in needs, one factor remains constant, the consumer’s limited budget. The real problem lies in the fact that Gen Z wants sustainable fashion, but they also want trendy clothes within their budget whereas in reality ethically sourced garments that are sustainable are naturally above the price point generally offered by fast fashion brands. Therefore, being conscious of Gen Z’s growing desire for affordable sustainable products the brands have adopted sustainability-targeted marketing in an attempt to appeal to their consumers. Many prominent fast fashion brands have been quick and creative in generating greenwashed campaigns to trick their consumer base into buying their products while projecting their brand to be environmentally conscious and sustainable. Such campaigns projected to be backed by verified data and evidence gives the consumer the required peace of mind while purchasing. “This year, more than a quarter of millennials and Gen Zs worldwide said that their buying decisions have been influenced by the impact of certain businesses on the environment.”[11] Thus, fast fashion brands are using the façade of sustainability to only further their own motives, while consumers limited by the budget are left with little option.

POPULAR FAST FASHION BRANDS AND THEIR GREENWASHED CAMPAIGNS

The Changing Markets Foundation (CMA) published its ‘Synthetic Anonymous’[12] report on 30^th June 2021, which reviewed the sustainability claims made by luxury fashion brands, fast fashion brands and online retailers to verify their claims as per the guidelines established by Competition and Markets Authority. The said report assessed the brands such as  H&M, Asos, Zara, Forever 21, Boohoo, Marks & Spencer (M&S), Uniqlo,  Gucci, Louis Vuitton, Walmart among others where 39% of products had sustainability claims attached to it but upon review, 59% failed to meet the standard guidelines established by Competition and Markets Authority to avoid greenwashing.[13]

Image: Instagram [14]

H&M which is one of the most popular fast fashion brands has been attempting to change the perception of its brand to its main consumer – Gen Z. The brand has time and again come up campaigns to project themselves as sustainable and eco-friendly. Previously the ‘Conscious Collection’ of the brand launched in 2012 claimed that the products of the said collection were made up of not less than 50% more ‘sustainable material’ without providing the necessary information regarding the material sourcing for the collection or the garment making procedure.[15] Furthermore, the campaign encourages customers to drop off their old H&M garments in their ‘recycle bins’ to avail a 15% off on their next purchase in return, however  the clothes collected in the recycle bins are thrown into trash or burnt off by the brand.[16] While continuing to being one of the major contributors of fashion waste H&M is running greenwashed campaigns such as “Loop Machine campaign” and hiring sustainability ambassadors like Maisie Williams, the Game of Thrones star. [17] Here, the ‘Loop machine’ is H&M’s supposedly recycling machine that the fabric of old clothes to churn out new ones. [18]  The objective behind these campaigns is to shed the brand’s image as a predominantly fast fashion brand and project it as a sustainable one to its consumer base.

On the other hand, Zara’s sustainability measures declared by Inditex in July 2019 solely aim to achieve ecological sustainability with the objective to ensure that 80% of the total energy consumed by Zara HQ is abstracted from renewable sources. [19] Further, they want to eradicate single-use plastic, adopt eco-friendly packaging, and promise to use cellulosic fibre that is 100% sustainable for responsible viscose by 2023.[20] While cellulosic fibre is an umbrella term for plant-based fibres such as linen, cotton, hemp, viscose (also commonly known as rayon). and others, however not all of them are entirely sustainable even though it comes from plants.[21] The deforestation claims and toxic production procedure associated with viscose makes it harmful to the environment. The production process is so harmful that workers at rayon factories risk facing nerve damage, neurophysiological effects as well as heart diseases while producing the fabric even before it is safe for public use. [22] The material sourcing and production process simply goes to highlight the empty sustainability promises made by the brand. The brand also plans to reduce its landfill waste to zero by 2025 by creating collections from 100%  recycled polyester along with sustainable cotton and linens.[23] However, despite the ambitious claims made, the company executives have failed to appropriately elaborate how the measures would positively impact their flurry of garment-workers or the suppliers in various developing countries.[24]

Post assessment of several brand campaigns, the CMA Report highlights certain fast fashion brands such as H&M, ASOS and M&S whose claims have flouted guidelines by a shockingly high margin of 96%, 89% and 88% respectively.[25] As fast fashion brands are continuing to trick its consumers, destroying the planet with their harmful practices the law is yet to hold them entirely accountable for their actions.

LAWS AND REGULATIONS AGAINST GREENWASHING

Image: “Global Regulatory Associations with Greenwashing”, Amplify.com/insights [26]

The consumer protection authorities from over 65 countries (such as US, UK, Canada, prominent EU nations, Australia, China, Japan and others) have formed a global network called the International Consumer Protection and Enforcement Network (ICPEN) that is responsible for cross border coordination to ensure enforcement and compliance of greenwashing guidelines by companies.[27] While at times soft enforcement such as warning letters are sufficient other times formal investigations are directed where the offence committed is criminal in nature.[28] In a recent survey of global websites conducted by the enforcement network ICPEN claims to have recorded approximately forty percent misleading environmental claims by companies who are trying to target the environment-conscious customer says Josephine Palumbo, president of ICPEN and deputy commissioner of deceptive marketing practices directorate at Competition Bureau Canada.[29]

In the European Union, widespread greenwashing campaigns led to rise in consumer distrust in the market which subsequently resulted in the establishment of a standard of minimum requirements in 2020 for brands who wished to avail the tag of an ‘EU Ecolabel’ [30] or other sustainability marks/logos.[31] Further, this also mandated companies to substantiate their brand’s environmental claims by showing reliable data such as the environmental footprint of products and organisations. While UK derived most of its environmental laws and regulations from the EU, post Brexit it is required to establish its own regulations which match up to the standards previously established by EU.[32]

Taking a conscious step to avoid greenwashing the UK government launched an investigation on all ‘green’ deals in August 2021, aiming to prevent consumer misinformation. [33]  The government assigned the Green Technical Advisory Group (GTAG) for conducting the investigation.[34] GTAG comprises of 28 stakeholders such as the Cambridge Institute, FTSE Russel, and others, headed by Ingrid Holmes of the Green Finance Institute.[35] Furthermore, the Competition and Markets Authority (CAM) will be launching its own guideline in September 2021 after running an investigation on the existing ‘eco-friendly’ claims in the market. [36] The collaboration between international regulatory bodies such as ICPEN, EU, Dutch Authorities for Consumer Markets, CMA along the UK government post-Brexit is an important collaboration that could possibly reform the existing regulations against greenwashing for a better future. [37]

In the Netherlands at the beginning of May 2021, the Authority for Consumers and Markets (ACM) began investigating the environmental claims of its largest local businesses including seventy fashion brands.[38] The investigation was subsequent to the announcement of five “rules of thumb” for environmental claims made by the regulatory body in January of the same year.[39] The Green Guides of the Federal Trade Commission (FTC) in the US outlines the rules prohibiting greenwashing by companies however the said guide has not been updated for almost a decade.[40] However, both policy collective called Politically in Fashion and Amendi, the contemporary denim fashion in the US are calling out the FTC to review and update its guidelines.[41] The Commission responded by a press release of a ‘statement of basis and purpose’ where it clarified its objective is to continue battling against deceptive and unfair practices rather than creating rigid definitions or standards that would be counterproductive in its purpose.[42] Now the American Association of Advertising Agencies has come up with a comprehensive guideline for brands promoting eco-friendly campaigns.[43]

On the other hand, France has become one the world’s first countries to direct its legal sanctions in combatting greenwashing. [44] The legal sanctions introduced by the government can levy up to 80% fine on organisations found to be guilty of greenwashing their campaigns and brand image. [45] The government’s action will discourage brands from committing greenwashing campaign frauds and subsequently save the consumer as well as the environment.[46]

Studies indicate that lapses in the advertisement regulations in India have given scope for rise in greenwashed advertisements which constituted 51.7% of the advertisements in the state in 2014.[47] Unfortunately, the environmental laws or trademarks laws presently in India do not comprise of any specific regulations that address greenwashing in the country.[48] Instead, there exists a self-regulatory organization by the name of ASCI (The Advertising Standards Council of India) that was founded in 1985 for the purposes of monitoring advertising content within the state.[49] The ASCI is an independent body that functions to preserve the sanctity of advertising within the Republic of India and to ensure the maintenance of public confidence in advertising and communications published by the compliance of its Code for Self-Regulation.[50] Even though the regulations mandate the advertisements to be truthful, legal, decent, non-hazardous, or harmful there are existing loopholes that could be rectified by guidelines addressing the issues concerning environmental claims and green advertising.[51] It is important to note that that the lack of appropriate regulations is not just harming the customers but also the state’s reputation as “it is committed to fulfilling sustainable Development Goals set up by United Nations by 2030.”[52]

CONCLUSION

Today’s consumer wants to invest their money in green and ethical fashion, however, they are limited by their budget. Fast fashion brands are aware of their consumer’s needs as well as their limitations thus greenwashed advertisements and campaigns are successfully generated to mislead such consumers. Therefore, with the willingness to invest in sustainable fashion the customers are also required to be aware of the brands and their practices beyond the over-advertised greenwashed campaigns in the absence of appropriate regulations.  As developed nations continue to focus on economic developments of the state turning a blind eye the environmental deterioration, consumer research becomes crucial. Chief brand officer at sustainability consultancy Eco-Age Mr. Harriet Vocking suggests, “Don’t just listen to the marketing, look at the company’s website and read what they are doing.”[53]

However, aware customers alone cannot fix a broken system. There is a dire need for government initiatives and regulatory bodies that monitor the market to ensure companies are complying to the environmental regulations and not simply pretending to be eco-friendly and sustainable to their customers. Suggesting such a mechanism is easier than establishing one as industry lobbying coupled with corruption creates a roadblock in the formulation of robust environmental legislation in most developing countries including India.[54] While countries around the world are taking their first steps towards regulations against greenwashing, there is a lot left to be done. A strict standard of compliance to regulations upon the violation of which corporations will be subjected to serious penalties can bring about a change in the attitude of such corporations. The fight against greenwashing must be a united one, the government, self-regulating bodies, corporations, and consumers themselves have to collectively take the onus to put an end to greenwashed campaigns. Meanwhile in the absence of a robust regulatory system that holds fast fashion brands accountable Gen Z has started to shop from small businesses and thrift stores leading to their rising popularity in today’s day and age.

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[20] Holgate M, “As Zara Announces Its Latest Sustainability Goals, Three of Its Design Team Weigh in on Going Slower and Creating Responsibly” (Vogue July 16, 2019) <https://www.vogue.com/article/zara-sustainable-initiatives> accessed September 5, 2021.

[21] Wicker A, “Greenwashing Alert: Is Rayon Actually Eco-Friendly?” (EcocultJuly 27, 2021) <https://ecocult.com/greenwashing-alert-that-natural-fabric-made-from-plants-might-be-toxic/> accessed September 8, 2021.

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[35] Mellor S, “A Raft of New Financial Products Claim to Be ‘Green’. The U.K. Government Isn’t so Sure” (FortuneJune 9, 2021) <https://fortune.com/2021/06/09/a-raft-of-new-financial-products-claim-to-be-green-the-u-k-government-isnt-so-sure/> accessed September 8, 2021.

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[43] 4A’s, “What Marketers Need to Know about Greenwashing in Advertising” (4A’sAugust 11, 2021) <https://www.aaaa.org/what-marketers-need-to-know-about-greenwashing-in-advertising/?cn-reloaded=1> accessed September 8, 2021.

[44] James M, “France Introduces One of the World’s FIRST GREENWASHING Laws” (Communicate magazineApril 16, 2021) <https://www.communicatemagazine.com/news/2021/france-introduces-one-of-the-world-s-first-greenwashing-laws/#:~:text=The%20French%20government%20have%20introduced,of%20the%20false%20promotional%20campaign.&text=The%20rise%20in%20ESG%20policies,has%20resulted%20in%20extensive%20greenwashing.> accessed August 29, 2021.

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[47] Fernando AG, Sivakumaran B and Suganthi L, “Nature of Green Advertisements in India: Are They Greenwashed?” (2014) 24 Asian Journal of Communication 222                                                                     DOI: 10.1080/01292986.2014.885537.

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[54] Fernando AG, Sivakumaran B and Suganthi L, “Nature of Green Advertisements in India: Are They Greenwashed?” (2014) 24 Asian Journal of Communication 222.                                                                           .  DOI: 10.1080/01292986.2014.885537.