CNA explains: What does that green label on your new purchase mean?

What is the main problem with greenwashing?

A study into greenwashing in marketing claims published in November by the NUS Business School found that more than half of online product claims came without sufficient evidence.

NUS Professor Loh, one of the academics behind this Competition and Consumer Commission of Singapore-funded study, said some companies are capitalizing on the pressure or responsibility placed on consumers to go green.

“That’s why they are appealing to them (through claims of environmental sustainability) and taking advantage of the situation to increase their income,” he said.

Unsubstantiated ‘green’ claims give companies an unfair advantage over competitors, says NTU’s Assoc Prof Law.

“When consumers and investors are presented with two identical products or investment opportunities, they are more likely to choose the product with green labels such as ‘certified green’ or ‘100 percent natural,’ even if the claims are not genuine,” he said.

He noted that it is often impossible for consumers and investors to verify the authenticity of environmental claims without extensive effort, time and resources.

“Just as we hold medical products and services accountable for false claims, we must do the same for environmental claims.

“This helps level the playing field for companies that are truly committed to sustainability and prevents consumers and investors from being misled by greenwashing tactics,” he added.