What You Need to Know About Greenwashing

Case found that just one simple query was often enough to bring those claims under a discerning microscope: "What proof do you have to support that claim?" he asked. "Very few had an answer to that question. That sends a very strong warning that people should be very skeptical of the environmental claims happening in this space."

In an atmosphere where many consumers are ready to lay out hefty sums for products they consider green, companies are playing up every aspect of their product that is healthy for the environment. This is not something that is just happening at Greenbuild, but at all major trade shows, in advertising, on Web sites, and so on. In so doing, some manufacturers are taking their claims too far and, intentionally or not, misleading buyers. It's what Greenpeace defines as "greenwashing": the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service. The practice could lead to problems for building professionals who find customers more cynical about green products—and who face the risk of becoming misled themselves.

Green Sins

What does it take to be labeled a greenwasher? The term, derived from whitewash (meaning to cover up a fault or error), seems to attribute a sinister motive to the transgressor. But not all experts see an intention to deceive in the practice. "For some people, greenwashing is out-and-out fraud," says Joel Makower, executive editor of GreenBiz.com and GreenerBuildings.com. "For others, it's an exaggeration or something that's not put in proper perspective. I think what's out there is less greenwashing than sloppiness."

Makower says some firms are overselling in an attempt to tout their green credentials. "What I see ... is an epidemic of vagueness. There are a lot of companies using claims that either don't mean anything, sound too good to be true, or both."

It's not difficult for pros to spot such examples of greenwashing—most types of environmental claims are so common that Case's TerraChoice released a study called "The Six Sins of Greenwashing" that detailed the most common types of false or misleading claims. The organization tested 1,018 products from big box stores that made environmental claims and found that all but one committed at least one of the six sins.

"One of the popular sins was people trying to focus my attention on a very specific, very narrow environmental claim," Case says. This, the most common sin, made by 57 percent of claims in the study, is the "sin of the hidden tradeoff": suggesting a product is "green" based on a single environmental attribute without attention to other important environmental issues.

One example at the show, Case says, was a floor covering manufacturer focusing on recycled content. "But I could smell the formaldehyde on that product," Case says, a problem that the product's competitors already addressed.

The "sin of no proof" was another common transgression at the show, with few companies able to provide proof of their environmental claims, Case says. A foam insulation product was guilty of the "sin of irrelevance," an environmental claim that may be truthful but is unimportant and unhelpful for consumers. "They advertised that it did not use CFCs," Case says. "CFCs were banned in 1978. It is illegal to use CFCs. But many consumers don't know that," so they might be misled when they don't see other companies making the same claim.

The "sin of vagueness" identifies those terms such as "chemical-free" and "non-toxic" whose meaning is poorly defined and likely to be misunderstood. Nothing is free of chemicals, Case says, and everything is toxic in sufficient quantities. The "sin of lesser of two evils" applies to claims such as "organic" cigarettes, that may be true but might distract consumers from the environmental impacts of the category, while the "sin of fibbing," the least common sin, applies to claims that are simply false, such as a caulking product that claims to be Energy Star-registered, but does not show up on the official Energy Star Web site.

Risky Business

Market research firm Leo J. Shapiro & Associates validates the concern. In a study titled "What Is 'Green' and Why It Matters," the firm found that consumers were concerned about companies riding the "environmentalist bandwagon" for their own financial gain, and noted that the skepticism might be a reflection of past experiences with green products. "Companies are rushing to put green products out there," says Arturo Angel, the firm's research director. "There's a risk to the brand."

While consumers will choose green products if they deliver the same benefits and features for the same price as non-green versions, "they're absolutely not willing to compromise on performance to get green products," he says.

Green fatigue is also a risk as consumers become confused by sometimes misleading environmental claims, says Lloyd Alter, an Ontario architect who now writes full-time on sustainability and other issues for Treehugger.com and Planetgreen.com. "People don't know what to do, so they just don't do it," he says.

Alter points to one countertop company that was extolling the 12 percent recycled content of its products. "The recycled material is their own scrap from mistakes," Alter laments. "They're building an entire ad campaign around it." He contrasts that type of exploitation with competitor IceStone's marketing campaign, which allows customers to follow every step in the life cycle of its sustainable countertops on its Web page.

Meanwhile, decisions could be confusing for the consumer, he says. "They'll say, 'I don't know which is better, so let's just use granite.'"

Beyond simple skepticism, greenwashing could leave consumers with a product that won't achieve the environmental benefits they desire, says Alex Wilson, president of BuildingGreen and executive editor of Environmental Building News. "There's a concern that well-meaning homeowners will buy a bill of goods and end up with something that isn't achieving what it's supposed to be achieving," whether in energy performance, indoor air quality, or other factors.

Building pros are often left to deal with complaints when a product doesn't perform, adds Carlos Martin, the NAHB's assistant staff vice president for construction, codes, and standards. "Builders are very concerned about [greenwashing] because we're the first to be contacted if the homeowner doesn't feel they got the product they were looking for," he says.

That result could have direct environmental impact, adds Stephen Roberts, managing director of sustainability consulting firm Green Canary. "If people are greenwashing, if they're being disingenuous in what they're doing or what they're selling, it's putting us as a society behind the 8-ball when it comes to climate change," he says. "For me, if we believe we're doing the right thing but we're really not making any progress to halt climate change, then we're going to have a big problem."

Seeing Green

The good news is that as a building professional, you have many resources to help you hack through the green jungle and reveal truly sustainable products and practices. "One way to prevent [greenwashing] is to do your homework," Roberts says.

"I think the answer is to get to know your local expert on building science," adds architect Pfeiffer. A handful of people in every community know the appropriate building science for their region, he says, and can help evaluate the technologies and methodologies. Nationally, publications such as Wilson's Environmental Building News and Building Products' sister magazine EcoHome provide in-depth background on green products and practices.

Labels and certifications are an important way to assess green products, but only if pros take the time to evaluate and understand the programs. "The best solution is to look for third-party certification on products," Wilson says. "If one does his homework, one can figure out which certifications can help, and which are [just] marketing logos."

TerraChoice's Case offers three clear questions to ask to distinguish real labels:

First, what is the standard on which the certification is based? At Greenbuild, "When I asked, 'What does that mean?', [the exhibitors] had no clue," Case says. "Does it look at one issue or multiple issues?" Is it just the product, or does it incorporate the raw materials, manufacturing process, and disposal?

Second, how was the standard developed? "You'd be amazed how many companies are developing their own standard," Case says. "The good standards are developed in a very open, public, transparent manner."

Third, how do you prove your product meets the standard? "A number of standards allow the manufacturer to decide whether they meet them or not," Case explains. "There's no proof, no accountability, no verification, no certification."

Case uses GreenSeal and his organization's EcoLogo as examples. Both are environmental leadership standards that follow international standard-setting protocols and cover several building product categories. He says pros can rely on such standards to avoid greenwashing, but "If you rely on a standard, you need to understand exactly what that means." Energy Star, for instance, is great for finding the most energy-efficient products, he says, but "if you look at Energy Star and assume it means energy-efficient [plus] no hazardous materials and easy to recycle, then you're misleading yourself."

Pros also should closely examine claims that products qualify for points in the USGBC's LEED system. "We sometimes hear, 'Our products are LEED-certified,'" says Nate Kredich, vice president of residential market development for the USGBC. "That's obviously false. LEED is concerned with the overall design and performance of the house." Some manufacturers might say their products "qualify" for LEED points, but, Kredich says, "how that product is used is more important than its inclusion."

Ask and Receive

Beyond certification, Case believes the other path to "green salvation" is for pros to become more demanding. "Short of actual certification would be encouraging suppliers to be more transparent with the information and environmental claims," he says.

Makower compares the demands for product information to the call for more nutrition facts for food: "You can now find out exactly how much fat, cholesterol, or sodium is in a burger or an order of fries." He also points to architect and designer Michelle Kaufmann, who has created "Sustainability Facts" for home designs that include information such as energy usage and carbon dioxide emissions.

The Federal Trade Commission (FTC) also may be lending some assistance. The FTC's "Guides for the Use of Environmental Marketing Claims," commonly known as the "Green Guides," help marketers avoid making environmental claims that are unfair or deceptive. Because of the proliferation of green claims, the commission is reviewing the guides this year, more than a year earlier than it originally planned, and the new guides could be ready as soon as 2009.

While the obscuring brush of greenwashing can paint any product in a hazy green sheen, a steady regimen of education, research, and discerning questions can chip through the layers to reveal a clear path to sustainable building. -- BUILDING PRODUCTS

From Greenwashing to Green Leading

Greenwashing isn't just a manufacturing issue. Building professionals also must avoid making similar mistakes in their own sales discussions and literature. Among pros, "There is some clear greenwashing, but it's well-intentioned," says Scot Case of TerraChoice Environmental Marketing. "Builders are seeing growing demand for green buildings, but not taking the time to become fully educated."

For example, some inexperienced contractors are relying on manufacturers' sales information that is fraught with greenwashing and not fully investigating the claims, he says. "I'm finding that even in the greener parts of the country, because the demand is growing so rapidly, there are people with no experience jumping in and making things more difficult for the real green designers," he says. They can charge "ridiculously" low prices by short-changing the consumer with products that aren't truly green, he explains.

Even if pros are using truly green products, materials are only a small part of what makes a home environmentally friendly, argues BuildingGreen's Alex Wilson. If a builder uses all the right products but is constructing a development 20 miles from the nearest store, it exacerbates concerns about sprawl, he says. "To call that development green based on recycled content in the tile in the foyer, that doesn't ring true to me." And if it's a 7,000-square-foot home, "I don't care what the materials are, it's not going to be considered green by many people."

As with product certifications, reputable green building programs can help address greenwashing concerns, says Nate Kredich, vice president of residential market development for the USGBC. "As long as they adhere to the better programs available to them, that will be a safeguard," he says. But, he notes, "If they try to create their own green building system without the guidelines of hundreds of experts, then not only does the buyer need to be aware, but the builder needs to be aware of their liability."

"When manufacturers make claims about their products and builders make claims about their homes, they both need to remember two key points," adds NAHB's Carlos Martin. "Make sure there's an acceptable standard" by which they're judging their product or home, and "make sure there's a third party certifying for that standard."

While building pros can be greenwashers, they also can be leaders. Buyers look to pros "as experts, as sources of information to understand green," says Arturo Angel of Leo J. Shapiro & Associates. "If you can explain to them the impact the products would have on a personal level, it makes much more sense to them." Make the case for green by making the connection with your clients' monthly bills, the health of their families, or even the health of the planet, and you might just change the way they think about green.—J.L.

"One way to prevent [greenwashing] is to do your homework." —Stephen Roberts, managing director, Green Canary

Product Certifications

• Consumer Reports:
  (www.greenerchoices.org/eco-labels/eco-home.cfm)
  The Greener Choices Eco-label center allows users to compare labels (149 at press time) on products such as wood using the organization's report cards.
• EcoLogo:
  (www.ecologo.org)
  Allows users to browse products that have received this independent, multi-attribute environmental mark in more than 200 categories of products.
• Energy Star:
  (www.energystar.gov)
  Provides energy-efficient product listings.
• Greenguard:
  (www.greenguard.org)
  The certification program does third-party testing for low-emitting products and materials. All certified products are listed in the online product guide, an indoor air quality (IAQ) resource.
• GreenSeal:
  (www.greenseal.org)
  Offers an index of products certified by this non-profit organization.
• WaterSense:
  (www.epa.gov/watersense)
  Provides water-efficient product listings.

More Resources

• BuildingGreen.com:
  The publisher of Environmental Building News and the GreenSpec directory provides unbiased information on green products and design.
• EcoHome:
  (www.ecohomemagazine.com)
  Our magazine offers up-to-date resources on green products and technology.
• The EnviroMedia Greenwashing Index:
  (www.greenwashingindex.com)
  This interactive forum invites users to submit and evaluate advertisements making environmental claims.
• Greenpeace:
  (www.stopgreenwash.org)
  Greenpeace's greenwashing page provides information on corporate greenwashing, conducts investigations, and invites users to submit examples.
• Six Sins of Greenwashing:
  (www.terrachoice.com)
  TerraChoice offers a printable .pdf and wallet card, as well as audio files and other information explaining its greenwashing "sins."
• TreeHugger:
  (www.treehugger.com)
  Blogs on this sustainability site discuss green news and product information.