Greenwashing is no longer an option
Greenwashing is no longer an option
Sustainability is one of Greenwood's key areas of focus; we're keen to prove that it's perfectly possible for ethically-minded investors and businesses to turn a profit while supporting sustainable growth and the environment. But this approach to business is still in its infancy; although some people cottoned on to the possibilities years ago, it is only recently that sustainability has become important on a grander scale.
With this in mind it is interesting to learn that companies are still struggling to find the right way of approaching the matter. For example, a recent announcement from ForestEthics revealed changes in the way people see the Sustainable Forestry Initiative (SFI). In fact, a total of 24 prominent brands have decided to move away the scheme, including AT&T and Allstate. Aaron Sanger from ForestEthics observed: “For major brands, as for ForestEthics, SFI is not environmental leadership.”
The group went so far as to suggest that the organisation is 'greenwash' – a term coined to describe the marketing practice of using green credentials to deceptively promote the perception that an organisation or company is environmentally friendly.
The main fault levelled at the scheme by ForestEthics is that it is too dependent on the industry it serves, which means that it doesn't always deliver for forests.
We believe that schemes like the SFI do go some way to promoting sustainable growth. But it's vital that they aren't the only approach being employed and they need to be carefully monitored. We're keen to see more work take place at the other end of the system to ensure that new plantations are able to provide a sustainable source of timber for the growing industries in and around Brazil, as well as those further afield. With these plantations also turning a profit for investors, the system looks set for secure growth with benefits in place for investors, the environment and timber buyers.
But it is essential that businesses get past the concept of 'greenwash'. Sustainable industry is fast becoming the only way forward - it is vital if our economies are to prosper. Glossing over this need with false marketing is simply not an option.
