Environmentally friendly - or just 'greenwash'?

As Australians become more conscious of the need to reduce their environmental impact, 'eco-friendly' products can deliver a powerful market advantage to their manufacturers.

But the Australian Competition and Consumer Commission (ACCC) has issued a clear warning to companies about 'greenwashing' (making environmental claims that are not scientifically sound and properly substantiated), in the guide 'Green marketing and the Trade Practices Act'.

The guide, which follows recent ACCC action over potentially misleading environmental marketing claims, aims to educate businesses about their obligations under the Trade Practices Act, and to assist manufacturers, suppliers and advertisers assess the strength of any green claims they make.

The guide says that any environmental claim about a business or product "should be clearly and accurately explained, be honest and truthful, detail the specific part of the product or process it is referring to, use language which the average member of the public can understand, explain the significance of the benefit and be able to be substantiated".

EPA Victoria was mindful of these issues when it achieved carbon neutral status in 2006, and was keenly aware of the need to substantiate its claims and be entirely transparent about its processes.

EPA used an external assurer, Net Balance Management Group, to assist in evaluating available data and emissions calculation methodologies. It has published its Carbon Management Principles and its emissions inventory on its website.

"One of the major challenges EPA faced - and one which feedback shows is experienced by companies needing to buy carbon offsets to complete their own carbon neutral strategy - is navigating the emerging offsets market," Terry A'Hearn, EPA's Director of Sustainable Development, said.

"Offset products don't yet require accreditation, and there is still no single system operating in Australia for those seeking accreditation," he said.

EPA Victoria extensively addresses the issue of carbon offsets on its website, including choosing offsets, types of offsets, the role of green energy, extensive resources, standards and guidance. Visit www.epa.vic.gov.au.

For a copy of 'Green marketing and the Trade Practices Act', visit www.accc.gov.au.