+43 664 81 97 894 - the hotline for radical, innovative and sustainable strategies.

HERZBLUAT

Name: HERZBLUAT Management Consultancy, Marketing & Advertising Agency, Salzburg
Price range: $$$

Management consultancy
Marketing consulting
Sustainability consulting

Salzburg, Austria

+43 664 81 97 894 - the hotline for radical, innovative and sustainable strategies.

HERZBLUAT
Management consultancy
Marketing consulting
Sustainability consulting

Salzburg, Austria

Sustainability has evolved from a short-term marketing trend into a decisive and unavoidable factor in the Corporate Communications developed.

Consumers increasingly expect Clear, well-founded and comprehensible statements on sustainability of products and services. At the same time, there is a growing awareness of marketing practices that only pretend to be sustainable.

Terms such as Greenwashing, Green Claims and Greenhushing have therefore become central concepts and have a lasting influence on the perception of companies on the market.

From trend to unavoidable standard:

Sustainability in marketing - Green claims

Greenwashing and greenhushing - the danger of a false green image

Greenwashing - the danger of a false green image

Under Greenwashing is understood as the Conscious or unconscious deception of consumers through misleading or unfounded environmental promises.

Companies try to build up a positive image in terms of environmental friendliness or social responsibility without actually taking appropriate measures.

Typical characteristics of greenwashing are vague, difficult to verify and general terms such as "ecological", "sustainable" or "climate-neutral", which are not backed up by objective data or recognised certificates.

The effects of greenwashing are serious:
It leads to a loss of trust among consumers, damages brand reputation in the long term and hinders serious sustainability efforts by other companies, as consumers become increasingly sceptical about any green communication.

Greenhushing - the fear of sustainable silence

The reaction to accusations of greenwashing is often the so-called Greenhushing.

Companies completely dispense with sustainability communication for fear of risking criticism or legal consequences.

This strategy seems safe in the short term, However, in the long term, companies are missing out on important opportunities to expand their brand strength.

Greenhushing prevents consumers from recognising and rewarding sustainable progress, which leads to a weakening of the brand profile.

Companies that practice greenhushingnot only miss the opportunity to position themselves positively, but run the risk in the long termcompared to competitors who communicate their sustainability performance transparently, to fall behind.

What are green claims and why are they so important?

Green Claims Directive - Clear EU rules against greenwashing

As Response to greenwashing the European Union plans to introduce the so-called Green Claims Directive.

To enable consumers to make informed purchasing decisions and curb greenwashing, the EU has adopted two new sets of regulations: the EmpCo Directive and the Green Claims Directive.

While the EmpCo guideline General statements without proof prohibits the Green Claims Directive strict requirements for the transparency and scientific substantiation of environmental claims.

Key points of the Green Claims Directive include

- Scientific obligation to provide evidence:
Companies must substantiate all voluntary environmental claims with sound, scientifically based life cycle analyses or comparable methods.

- Pre-audit by independent auditors: (problematic from our point of view, keyword "censorship")
Before environmental promises are communicated publicly, they must be verified by accredited external bodies.

- Clear rules for eco-labelling:
In future, ecolabels must provide transparent information about their criteria and certification processes in order to prevent uncontrolled growth and abuse.

This means that under the new EU Directive on Empowering Consumers for Environmental Change (EmpCo Directive), general environmental claims such as "environmentally friendly", "climate-friendly" or "CO₂-neutral" will be banned in future unless they are backed up by an official eco-label or scientific evidence.

Even self-created sustainability seals may only be used if they are based on recognised certification systems.

This new regulation initially presents companies with challenges, but at the same time offers a unique opportunity for differentiation.
Brands that communicate sustainability in an authentic and verifiable manner can Significantly improve market positioning and benefit from greater credibility in the long term.

Opportunities for honest sustainability communication

Companies that make a clear decision against greenwashing and greenwashing benefit in several ways:

- Building and strengthening trust:
Transparency creates trust and long-term customer loyalty.

- Differentiation in competition:
Sound and verifiable sustainability communication sets companies apart from the competition.

- Innovation promotion:
The commitment to verifiable environmental performance promotes innovative approaches and sustainable developments in companies.

Greenwashing is not worth it - there is a risk of high penalties and reputational damage!

Legal and financial consequences of greenwashing

The EU Green Claims Directive provides for severe sanctions in the event of violations.

Companies that continue to engage in greenwashing will face severe penalties. Fines from up to 4 % of their annual turnover in the respective member state and confiscation of the revenue generated with the products in question.

Likewise with a temporary Exclusion from public tenders for a maximum of twelve months and from the Access to public funds and concessions.

Furthermore Reputational damage should not be underestimated, the Long-term negative consequences can have.

Using green claims correctly: From obligation to opportunity for sustainable success on the market!

The EU Green Claims Directive (Directive) as an opportunity

The EU Green Claims Directive creates binding standards that oblige companies to have their green claims certified by external, independent bodies.

This new transparency obligation initially means increased effort, but harbours enormous potential:

- Brand strengthening:
Honest, verifiable green claims improve the brand image and generate positive attention.

- Customer confidence:
Reliable and transparent communication strengthens trust and leads to long-term customer loyalty.

- Sustainable competitive advantage:
Companies that integrate these standards at an early stage secure important competitive advantages over less responsible competitors.

Recommendations for successful and sustainable marketing

In order to optimally utilise the potential of green claims, it is advisable to consistently implement the following steps:

- Strategic anchoring:
Anchoring sustainability as the core of the corporate strategy.

- Create a database:
Thoroughly collect and regularly update relevant environmental data.

- Independent certification:
Cooperation with external audit institutions to ensure credibility.

- Transparent communication:
Disclosure of all sustainability activities, including existing challenges and planned solutions.

- Active positioning:
Active avoidance of greenhushing through targeted and courageous communication of sustainable successes.

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Green claims as the key to sustainable market success

The challenges posed by greenwashing, green claims and greenwashing are huge, but they also offer enormous opportunities for companies that focus on honest and well-founded sustainability communication.

By consistently implementing the Green Claims Policy, companies can build long-term trust, clearly differentiate themselves in the market and sustainably increase their brand value.

Sustainability thus becomes a strategic competitive advantage and an important lever for the future orientation and development of successful companies.

We look forward to working with you to shape a sustainable and successful future for your company.

You can reach us by telephone +43 664 81 97 894 or by e-mail to office@herzbluat.at.

More on the topic on HERZBLUAT:
- Why the "S" in ESG is crucial (https://www.herzbluat.at/warum-das-s-in-esg-entscheidend-ist/)

More on this topic at the EU:
- Official website of the European Commission on Green Claims: https://environment.ec.europa.eu/topics/circular-economy/green-claims_en
- Official website of the European Parliament on Green Claims: https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2023)753958

Gregor-Wimmer-Marketing-Advertising-Agency-Salzburg-Heartblood-Master-Class-Market-Communication-Advertising

Dkkfm. Gregor Wimmer, CMC
Certified management consultant
Certified sustainability expert
Marketing specialist

+43 664 81 97 894
office@herzbluat.at

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