The move to green

28 June 2010
Businesses throughout the country are looking at ways that they can 'green up' their goods and services.  So how do you go green without hitting a red light?

Consumers are becoming more environmentally aware and, in some cases, are choosing sustainable products over others.  ‘Green marketing’ is a real focus for many businesses, but getting it right takes care and effort.  As with any marketing, what you say needs to be accurate and truthful and comply with the Fair Trading Act.

Environmental claims can be a powerful marketing tool.  But get it wrong and it can do significant damage to your business.  If consumers find out you are making untruthful or unsupportable claims, the backlash will be intense.   

Being green can provide a competitive edge for a business. More and more consumers are looking for sustainable goods and services.  This opens the doors for smart and savvy businesses to look at ways that they can make green claims. 

Recently a group called Conscious Consumers was launched in Wellington to promote an ethical culture in its cafes. Cafes that join receive certification that they can display in their windows.  The badges can be earned for recycling, eco-packaging, using fair trade coffee, using free-range eggs, using certified organic cow’s milk, composting organic waster, using seasonal fruit and vegetables, using eco-friendly cleaning products and encouraging customers to bring in their own cups for takeaway coffee.  The certification clearly displays their commitment to green practices to their customers.  The project came about partly in response to the surge in businesses making green claims about environmentally-friendly and sustainable production while taking only superficial measures in those areas.  It will be interesting to see if other cafes throughout the country join Conscious Consumers.

This project is, however, just one of many that has gained traction.  Businesses that are aware of their ethical footprint want to tell consumers where they stand.  This not only heightens their own credibility, but also provides valuable information for consumers.  It’s is a win-win situation.

We have seen a surge in businesses making green claims.  Environmental claims are now relevant to many product categories—from small household items to major whiteware goods and appliances.  Unfortunately not everyone making green claims has been truthful.  In response, the Commerce Commission has issued guidelines for businesses wanting to use green claims in their marketing.   These guidelines provide a useful reference point to help businesses better understand how to comply with the Fair Trading Act.  You can get the guidelines online at: www.comcom.govt.nz.

When it comes to making environmental claims, the Fair Trading Act applies to all forms of advertising—this includes packaging, labelling and all forms of advertising and promotion.

Be careful that the overall impression you create about your products is not misleading. 

Generally a claim should:

  • be honest and truthful;
  • detail the specific part of the product or process it is referring to;
  • use language which the average consumer can understand;
  • explain the significance of the benefit; and
  • be able to be substantiated.


Don’t forget that pictures can also be representations.  Some pictures may suggest environmental benefits or advantages to consumers and must be used with care. 

Where the scientific basis for your claim is under dispute or not clear, you should be careful not to present your claim as being universally accepted.

Think about the words you are using.  Make sure you can prove any statements if called upon to do so.  Be wary of words or statements like:

  • environmentally friendly
  • environmentally sage
  • energy efficient
  • recyclabe or recycled
  • carbon neutral
  • renewal or green energy/electricity.


Taking a few simple steps can avoid a breach of the Fair Trading Act.  Often the devil is in the detail.  Put a checking system in place to ensure that your marketing materials do not breach the Act. Test your claims against the Commerce Commission guidelines and remove any misleading impressions. Finally, get your lawyer to check your promotional material.

Consumers are entitled to rely on your environmental claims.  Make sure any claims you make are truthful, and not misleading.

An edited version of this article was published in Her Business magazine, June 2010.

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