Major brands’ net zero claims ‘misleading’

Greenwashing isn’t just a case of lying, but omitting context and misleading is a big problem that can’t easily be ignored – a new study finds that some of the largest companies on earth aren’t saying enough about their climate pledges.

Why it matters

Brands from Tesco, to Coke have been marred by instances of greenwashing but perhaps the most interesting recent instance was HSBC, which saw a series of OOH ads banned by the Advertising Standards Authority for talking about its environmental work while being found to be financing businesses with significant carbon and other greenhouse gas emissions, with the bank announcing last year that it would no longer finance new oil projects as a “minimum level of ambition.”

It’s not just embarrassing for those caught, it sets a precedent for any brands making claims about their environmental record to put those claims in the context of their wider business operations. Studies like this one represent the growing pressure of scrutiny that could affect marketing and communications work if they are not cleaned up.

The study

A report by the NewClimate Institute and Carbon Market Watch, the 2023 Corporate Climate Responsibility Monitor finds all 24 major companies ‘net zero’ pledges to be misleading, while allowing most normal operations to continue unchanged.

The companies studied were chosen because many have put themselves forward as climate leaders, the report explains.

• 15 of the 24 companies climate strategies were found to be of low or very low integrity. None were considered of high integrity
• 17 of the companies displayed an “inadequacy or complete lack of plans” to substantiate their pledges.
• While most companies’ disclosures were of moderate transparency, the overall plans are “wholly insufficient” to keep to the UN’s 1.5 degree target, with most targets and offsetting plans ambiguous, with very few articulating Scope 3 emissions plans.
• As a result, stated targets without scoping are very difficult to take at face value.
• The 24 sampled companies plan to offset 23–45% of their combined 2019 emission footprint to claim achievement of their long-term net-zero pledges. Offsets are particularly problematic because of the murkiness of their supply chain and should be a last resort, bought with high verification standards.

Key quote

“At a time when corporations need to come clean about their climate impact and shrink their carbon footprint, many are exploiting vague and misleading ‘net zero’ pledges to greenwash their brand while continuing with business as usual,” says Carbon Market Watch’s Executive Director Sabine Frank.

Sourced from the CCRM. Image: CCRM