SPENDING A LITTLE extra on "green" products may make you feel better, but it may not have as much of an earth-friendly impact as you hope.
Those alluring labels claiming items to be "all natural," "eco-friendly" and "organic" are often inaccurate, inflated, unsubstantiated or otherwise misleading, says Brian Clark Howard, editor at TheDailyGreen.com, a green living site. (TheDailyGreen.com is published by Hearst Corp.; SmartMoney.com is a joint venture of Hearst and Dow Jones, which is owned by News Corp.) Such deceptive practices even have their own term in the eco-world's lexicon: greenwashing. And unfortunately, it's fairly rampant.
In 2007, specialty researcher TerraChoice Environmental Marketing studied 1,753 environmental claims on 1,018 products found at major retailers. All but one carried claims that could be proven false or that were potentially confusing for consumers.
"When you use your money to buy an environmentally-friendly product, you think you're doing something to help the environment, not preserve the status quo," says University of Oregon professor Kim Sheehan, co-founder of GreenWashingIndex.com, a partnership between the university and Texas-based researcher EnviroMedia Social Marketing that evaluates ads making green claims. Among the worst offenders are auto makers and energy companies, she says, but few industries are altogether clean.Now, with consumer spending on the decline, retailers are even more desperate to boost sales and many see jumping on the green bandwagon as the perfect solution. After all, nearly 90% of shoppers consider the health and environmental impact of products when deciding what to buy, according to Consumer Reports. "Hearing [an eco-friendly] claim is enough to make many consumers choose one brand over another," says Sheehan. It can be profitable, too, with 70% of shoppers willing to pay up to a 20% premium for a product or service that claims to be eco-friendly, reports Mambo Sprouts Marketing, a market researcher specializing in organic and healthy living products.
The resulting tidal wave of green products entering the market has spurred the Federal Trade Commission into action. The agency is reviewing its outdated green marketing guidelines, which haven't been revised since 1998. "Advertisers are always trying to put the best light on things," explains FTC spokesman Frank Dorman. While some greenwashing is done with the intent to deceive, sometimes there's simply just a difference of opinion about what items qualify as "natural" or "earth-friendly," he says. In either case, consumers need better protections. Through May, the FTC will debate everything from the standards of "carbon neutral" to the meaning of "sustainable." Proposals for the new guidelines are expected to be out later this year.
Until those new rules are in place, consumers need to exercise a level of skepticism regarding eco-claims. Just scanning the product's label won't give you a clear indication of its legitimacy, says Elliot Laws, senior counsel specializing in environmental issues at Washington, D.C.-based law firm Pillsbury Winthrop Shaw Pittman LLC. "It's going to take a little homework."
Here are four tips to help you assess just how green the product you're buying really is:The more details, the better.
Those alluring labels claiming items to be "all natural," "eco-friendly" and "organic" are often inaccurate, inflated, unsubstantiated or otherwise misleading, says Brian Clark Howard, editor at TheDailyGreen.com, a green living site. (TheDailyGreen.com is published by Hearst Corp.; SmartMoney.com is a joint venture of Hearst and Dow Jones, which is owned by News Corp.) Such deceptive practices even have their own term in the eco-world's lexicon: greenwashing. And unfortunately, it's fairly rampant.
In 2007, specialty researcher TerraChoice Environmental Marketing studied 1,753 environmental claims on 1,018 products found at major retailers. All but one carried claims that could be proven false or that were potentially confusing for consumers.
"When you use your money to buy an environmentally-friendly product, you think you're doing something to help the environment, not preserve the status quo," says University of Oregon professor Kim Sheehan, co-founder of GreenWashingIndex.com, a partnership between the university and Texas-based researcher EnviroMedia Social Marketing that evaluates ads making green claims. Among the worst offenders are auto makers and energy companies, she says, but few industries are altogether clean.Now, with consumer spending on the decline, retailers are even more desperate to boost sales and many see jumping on the green bandwagon as the perfect solution. After all, nearly 90% of shoppers consider the health and environmental impact of products when deciding what to buy, according to Consumer Reports. "Hearing [an eco-friendly] claim is enough to make many consumers choose one brand over another," says Sheehan. It can be profitable, too, with 70% of shoppers willing to pay up to a 20% premium for a product or service that claims to be eco-friendly, reports Mambo Sprouts Marketing, a market researcher specializing in organic and healthy living products.
The resulting tidal wave of green products entering the market has spurred the Federal Trade Commission into action. The agency is reviewing its outdated green marketing guidelines, which haven't been revised since 1998. "Advertisers are always trying to put the best light on things," explains FTC spokesman Frank Dorman. While some greenwashing is done with the intent to deceive, sometimes there's simply just a difference of opinion about what items qualify as "natural" or "earth-friendly," he says. In either case, consumers need better protections. Through May, the FTC will debate everything from the standards of "carbon neutral" to the meaning of "sustainable." Proposals for the new guidelines are expected to be out later this year.
Until those new rules are in place, consumers need to exercise a level of skepticism regarding eco-claims. Just scanning the product's label won't give you a clear indication of its legitimacy, says Elliot Laws, senior counsel specializing in environmental issues at Washington, D.C.-based law firm Pillsbury Winthrop Shaw Pittman LLC. "It's going to take a little homework."
Here are four tips to help you assess just how green the product you're buying really is:The more details, the better.
A label that says "recycled" is fine, but one that states "100% post-consumer recycled content" is far better. The more detailed the claim, the less likely it is that the company is hiding not-so-green practices behind vague wording. "It's not fair to expect consumers to become scientists in the supermarket," says Joel Makower, executive editor for GreenBiz.com, which analyzes green business practices. Precise wording makes it easier for you to verify the claim, or compare the product against its competitors.
Learn the lingo.
Learn the lingo.
The U.S. Department of Agriculture regulates the use of "organic" on food packaging, while the FTC has set out specific guidelines for items labeled as "recycled." However, regulation pretty much stops there. Terms like "natural," "cruelty-free" and "nontoxic," have no standard definition, guaranteeing very little when found in advertising, says Sheehan. Others are irrelevant, like "CFC-free." (Chlorofluorocarbons were banned almost 30 years ago — no product contains them.) Before you shop, check out common label language using Consumer Reports' free eco-label tool to see which words are worth looking for.
Dig deeper.
Dig deeper.
Many of the most important environmental innovations are happening behind the scenes, and may not be touted on product packaging, says Makower. Check corporate web sites for new initiatives that may make an impact. Anheuser-Busch, for example, has repeatedly redesigned its beer cans since the mid-'60s to use less aluminum. Considering that aluminum production is a major source of greenhouse-gas emissions, the innovation carries considerable clout, says Makower. "But they're not going to put a Green Seal on Beck's or Bud."
Seek certification.
Seek certification.
"Everyone wants to have 'eco-friendly' applied to their name, but a label is only going to be meaningful if it has specific, transparent criteria," says Howard. Look for certification seals from a reputable, independent third-party organization — say, USDA Organic for pesticide-free veggies, or FSC Certified (Forest Stewardship Council) for sustainable paper products. (See chart below for more examples.) These logos guarantee that the product bearing such seals meets set standards, with ongoing reviews to ensure compliance. Be wary of "certification" provided by the company itself, or by its affiliates, he warns.
Even legit seals confirm only that the product has met minimum criteria, points out Gregg Steiner, president of GreenLifeGuru.com, an eco-consultant. You'll still need to shop around to make sure you're getting the best product for your money. Some Energy-Star-certified clothes washers, for example, are more than twice as energy-efficient as others. A certified USDA organic cleaner, on the other hand, may have a shorter shelf life than other eco-products because it is made from all food-grade ingredients with no added chemicals.
Seals Worth Seeking Out
Even legit seals confirm only that the product has met minimum criteria, points out Gregg Steiner, president of GreenLifeGuru.com, an eco-consultant. You'll still need to shop around to make sure you're getting the best product for your money. Some Energy-Star-certified clothes washers, for example, are more than twice as energy-efficient as others. A certified USDA organic cleaner, on the other hand, may have a shorter shelf life than other eco-products because it is made from all food-grade ingredients with no added chemicals.
Seals Worth Seeking Out
Here are a few of the reputable big names, and what you're getting with a seal-bearing product:Energy Star
Where you'll spot it: On thousands of devices, from refrigerators and ceiling fans to windows, TVs and holiday lights.
Who backs it: The U.S. Environmental Protection Agency and the U.S. Department of Energy.
What you're guaranteed: The device bearing the Energy Star seal has met energy-efficiency standards for its product category. Room air conditioners, for example, must be at least 10% more efficient than their conventional counterparts and include energy-saving features like timers or low-energy settings. Energy Star devices must also bear a tag that explains just how efficient the unit is — and what kind of annual savings that translates into for buyers.Fair Trade Certified
Where you'll spot it: Agricultural products including coffee, tea, sugar, rice and flowers.
Who backs it: TransFair USA, an independent nonprofit serving as the U.S. representative of the Fairtrade Labelling Organizations International, a global network of fair trade groups.
What you're guaranteed: Products with this label were produced and traded in a way that meets set economic, social and environmental criteria. That includes living wages for workers, direct trade with farmers to secure a fair price, and farm practices that protect the local ecosystem.FSC Certified
Where you'll spot it: Wood and paper products.
Who backs it: Forest Stewardship Council, an independent international organization dedicated to forest management.
What you're guaranteed: Trees used in the manufacturing of these products were grown and harvested in a way that does not unnecessarily deplete forest resources, affect the surrounding forest's ecological processes or deplete the local economy.Green Seal
Where you'll spot it: On thousands of products and services, including paint, paper, cleaning services and hotels.
Who backs it: Green Seal, an independent nonprofit organization based in Washington, D.C., that tests and evaluates green products.
What you're guaranteed: Green Seal performs scientific testing on the product (often with the aid of the University of Tennessee at Knoxville and other academic research institutions) that ensures it to be at least as efficient as comparable items — if not more so — while maintaining a low environmental impact from design to production to disposal. Household cleaners, for example, must not be toxic to aquatic life and must have a recyclable package, among other criteria.USDA Organic
Where you'll spot it: On agricultural products including fruits, vegetables and meats, as well as some packaged goods and nonfood items (like cleaning products and cosmetics) that are made with all food-grade materials.
Who backs it: U.S. Department of Agriculture
What you're guaranteed: The item was grown and processed in a way that did not use pesticides or added chemicals. Meat and poultry must meet the additional requirement of being antibiotic free. Processed foods may only bear the seal if at least 95% of the content is organic.
Where you'll spot it: On thousands of devices, from refrigerators and ceiling fans to windows, TVs and holiday lights.
Who backs it: The U.S. Environmental Protection Agency and the U.S. Department of Energy.
What you're guaranteed: The device bearing the Energy Star seal has met energy-efficiency standards for its product category. Room air conditioners, for example, must be at least 10% more efficient than their conventional counterparts and include energy-saving features like timers or low-energy settings. Energy Star devices must also bear a tag that explains just how efficient the unit is — and what kind of annual savings that translates into for buyers.Fair Trade Certified
Where you'll spot it: Agricultural products including coffee, tea, sugar, rice and flowers.
Who backs it: TransFair USA, an independent nonprofit serving as the U.S. representative of the Fairtrade Labelling Organizations International, a global network of fair trade groups.
What you're guaranteed: Products with this label were produced and traded in a way that meets set economic, social and environmental criteria. That includes living wages for workers, direct trade with farmers to secure a fair price, and farm practices that protect the local ecosystem.FSC Certified
Where you'll spot it: Wood and paper products.
Who backs it: Forest Stewardship Council, an independent international organization dedicated to forest management.
What you're guaranteed: Trees used in the manufacturing of these products were grown and harvested in a way that does not unnecessarily deplete forest resources, affect the surrounding forest's ecological processes or deplete the local economy.Green Seal
Where you'll spot it: On thousands of products and services, including paint, paper, cleaning services and hotels.
Who backs it: Green Seal, an independent nonprofit organization based in Washington, D.C., that tests and evaluates green products.
What you're guaranteed: Green Seal performs scientific testing on the product (often with the aid of the University of Tennessee at Knoxville and other academic research institutions) that ensures it to be at least as efficient as comparable items — if not more so — while maintaining a low environmental impact from design to production to disposal. Household cleaners, for example, must not be toxic to aquatic life and must have a recyclable package, among other criteria.USDA Organic
Where you'll spot it: On agricultural products including fruits, vegetables and meats, as well as some packaged goods and nonfood items (like cleaning products and cosmetics) that are made with all food-grade materials.
Who backs it: U.S. Department of Agriculture
What you're guaranteed: The item was grown and processed in a way that did not use pesticides or added chemicals. Meat and poultry must meet the additional requirement of being antibiotic free. Processed foods may only bear the seal if at least 95% of the content is organic.
Source: www.smartmoney.com
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