GREENWASHING - ENVIRONMENT
News: Why
the UK banned Air France, Lufthansa, and Etihad ads over ‘greenwashing’ claims
What's in the news?
● Earlier
in December, the United Kingdom’s ad regulator banned advertisements from Air
France, Lufthansa, and Etihad for allegedly misleading consumers regarding the
environmental impact of air travel.
Key takeaways:
● This
isn’t the first time that airlines have come under fire for false advertising
about their sustainability efforts and accused of ‘greenwashing’.
Greenwashing:
● Greenwashing
is the practice in which firms and governments mark all kinds of activities as climate-friendly, as something that
would lead to emissions reduction, or avoidance of emissions.
● Many
of these claims are unverifiable,
misleading or dubious.
Issues in greenwashing:
● Greenwashing
presents a false picture of the
progress being made on the climate change front, thereby pushing the world
towards disaster, while at the same time rewarding entities for irresponsible
behaviour.
Examples of Greenwashing:
● The
Volkswagen scandal, in which the
German car company was found to have been cheating in emissions testing of its
supposedly green diesel vehicles, was a case of greenwashing.
● Several
other multinational corporations, including oil giants like Shell and BP, and
Coca Cola have faced accusations of greenwashing.
Global Initiatives Related to Greenwashing:
● At
the 27th Conference of Parties (COP27),
the United Nations Secretary-General has declared zero tolerance for greenwashing, urging private corporations to
rectify their practices.
● The
European Union approved the world's first green bond standards to combat
greenwashing in October 2023.
○ The
"European Green Bond" label mandates transparency, directing 85% of
funds to EU sustainable activities. The legislation aims to support the EU's
climate neutrality transition.
Laws in India Related to Greenwashing:
● Greenwashing is
designated as an unfair trade practice under the Consumer Protection Act, 2019
in India. The Act prohibits such deceptive claims
and outlines penalties and remedies for consumers adversely affected by these
misleading practices.
● In
February 2023, the Securities and Exchange Board of India (SEBI) issued guidelines for issuers of green debt securities to
ensure transparency and avoid greenwashing.
○ The
guidelines are intended to protect investors, promote the development of the
securities market, and regulate it.
● The
Advertising Standards Council of India
(ASCI) plays a regulatory role in monitoring advertising practices and holds
some jurisdiction over allegations of greenwashing.