Consumer perceptions: Will “greenwashing” by some companies hurt others that are working hard to be socially responsible?
Let’s face it. Most consumers are busy and don’t have time to research every product to ensure that it is sustainable, prior to making a purchase.
Advertisers are well aware of this. In their messages, they splash images of sunshine, trees and eco-friendly windmills. They make buyers feel good – but is it true?
In 2019, BP was accused of greenwashing during a campaign in which the energy company promoted its low-carbon initiatives. Environmental critics pointed out that 96% of the firm’s annual capital expenditure goes toward non-renewable oil and gas ventures.
It’s a challenge for shoppers. In a survey of UK consumers, Wealthify found that 78% were unable to identify greenwashing by companies. At the same time, the survey found that three-quarters of people believe it’s important to support ethical corporations. That’s a real mismatch, and the danger is people lose faith and revert to the norm, stifling progress in sustainable change towards greater well-being.
Unfortunately, big companies often have significant budgets to spend on advertising and social media. They reach millions of eyeballs with pitches that may not be totally accurate or ethical. After these campaigns, accusations of greenwashing generate a proportionately small amount of negative publicity – not enough to counter the original claims of “doing good”.
Greenwashing concerns extend to investment as well. Earlier in 2021, the German asset manager DWS was accused by its former head of sustainability of overstating how much it used sustainable investment criteria to manage assets. DWS denied the charge.
At 8 Dimension Ventures (8DV), we drive the encouragement of ethical investment. We will only be investing in companies that support - at their core - the 8 Dimensions of Wellness. These are: Environmental, Financial, Spiritual, Emotional, Intellectual, Occupational, Physical and Social.
Our strict but pragmatic due diligence aims to provide investors with confidence that their money is being allocated into businesses that are helping both people and the planet. Trust and integrity sit at the very centre.
8DV will be providing more than just monetary assistance. Our seasoned team will offer mentorship, coaching and candid advice to help companies innovate and grow. And to stay on track within ethical and sustainable operations, paving a path to greater positivity and, ultimately, profitability.
As everyday consumers ourselves, we feel proud to support firms based on our 8 Dimensions strategy. Our aim is for other great minds to see our commitment to people and the planet and join us in our mission to assist innovative start-ups to reach their Pure Potential.
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