Are PR and Comms professionals guilty of “greenwashing”, that is painting a false picture of their organization or client’s environmental friendliness and compliance with wider environmental, social and governance (ESG) standards?
The temptation for PR and Comms professionals to engage in greenwashing is strong as investors and consumers in Developed Countries favour corporations and organizations with high ESG performance rating. However, where the claims are unsubstantiated or superficial, the situation can backfire and cause reputational damage.
Commetric.com discusses this phenomenon in a May 2022 article titled Greenwashing: How Can PR and Comms Clean Up Their ESG Messaging?
Climate Change
The article points to a 2021 study published in Climate Change journal which found that for 30 years major gas/oil companies along with electricity manufacturers heavily utilised the services of PR firms which “developed campaigns that frequently relied on third-party groups to engage with the public, criticise opponents, and serve as the face of an advertising campaign.”
According to the study, the PR campaigns give the impression that the client is a trustworthy and socially responsible actor. “Being able to effectively promulgate a particular narrative allows an organisation to set the terms of the debate to favour their preferred outcomes” in the climate change policy debate, the study noted.
The PR firms employed several strategies including engagement in third party mobilisation and delegitimization of the opposition. The tactics utilised included paid media campaigns, earned media campaigns, social media campaigns, as well as grassroot rallies/events through the creation of organisations that front citizen support for corporate policy decisions.
Greenwashing
Commetric.com chroniclesthe recent rise in media interest about greenwashing as follows:
- In 2019 McDonald’s introduced paper straws that turned out to be non-recyclable.
- In 2020, several securities watchdogs called for European Union rules to prevent greenwashing.
- In 2021 New York City sued Exxon, BP and Shell along with the American Petroleum Institute for “systematically and intentionally deceiving New Yorkers” on climate change issues. The suit alleged oil companies used “greenwashing campaigns” directed at NYC consumers to falsely present themselves as corporate leaders in the fight against global warming.
- In 2021 greenwashing was a big topic in the media conversation around COP26. Hundreds of thousands of activists gathered in Glasgow, where the 26th United Nations climate conference took place, to demand more immediate and drastic action on climate change.
- In 2022, the media debate heightened as NGOs continued to scrutinise the ESG commitments of big corporations.
Sustainable Development
So, how do PR and Comms avoid being guilty of greenwashing? The key to building an authentic ESG performance or profile is to be transparent in reporting and communicating to critical stakeholders including regulators, investors, and customers.
Being transparent requires the use of precise language and avoiding generalities which could raise suspicion about the level of sincerity and authenticity of the ESG claim by the organisation. Furthermore, authenticity demands that ESG factors are integrated into the organisation’s culture and business processes, rather than being a Corporate Social Responsibility project. ESG should be a sustainable development programme rather than a project.
According to ESG advocate, Gihan A.M. Hyde, it’s not good enough to focus too much on the “E” while de-emphasizing the “S” and “G”. She notes: “While environmental issues are undoubtedly important, ESG encompasses social and governance issues as well. Companies that only focus on their environmental performance may be seen as neglecting social and governance issues.”
It is easy to focus on environmentally friendly factors because climate change is in vogue and enjoys a universal platform. This is not necessarily so with regards to poor governance structure and social relations within organisations which eventually is exposed to the public in the form of ethical violations by C-suite executives.
The lesson is for PR and Comms people to do their ESG homework and steer their clients in the direction of sustainable development.
Leave a Reply
You must be logged in to post a comment.