Green Is The New Black

Today, I would like to discuss the issue of greenwashing by crude oil companies. Crude oil isn't exactly a consumer product (although many of its derivatives end up in consumer goods) but there is an interesting case I thought of sharing so stay tuned. 

Greenwashing refers to the act of overstating or misrepresenting environmental claims (Carveth, 2011).  As more businesses go green, mainstream companies have increasingly “greenwashed” their brand to appear environmentally responsible as well (Cherry & Sneirson, 2012). In Chevron, Greenwashing, and the Myth of "Green Oil Companies", Cherry & Sneirson (2012) demonstrate that the oil industry is no exception.

Chevron released a series of advertisements titled "we agree" in 2010 (Cherry & Sneirson, 2012), claiming to concur with public sentiment that oil companies "should develop renewables, support communities, create jobs and protect the environment" (Ramon, 2010) and went on to show the company’s efforts in doing so. Critics have challenged Chevron’s claims, calling them hypocritical and nothing more than an act of greenwashing for many reasons (refer to pg 151). However, perhaps the most prominent is Chevron's defense of its Ecuadorean lawsuit, evading its responsibility to clean up the 18 billion gallons of toxic water and 17 million gallons of crude oil disposed of inappropriately by its subsidiary Texaco (Cherry & Sneirson, 2012).

Cherry & Sneirson (2012) go on to discuss ways to better regulate corporate social responsibility (CSR) and environmental stewardship in the corporate world, including the establishment of laws against false advertisement, better and more extensive certification and the importance of “watchdogs”.

Speaking of watchdogs, Greenpeace has recently called out Royal Dutch Shell for greenwashing. It is a unique case however, because instead of targeting Shell itself, Greenpeace has instead criticised Lego's move to advertise for Shell in its toys, which it believes to contradict Lego's commitment to establish itself as a more environmentally responsible brand (Vaughan, 2014). I find this example interesting because it reveals a specific strategy that oil companies may use to "greenwash" themselves - investing or tying up with "greener" consumer brands to portray themselves as being more environmentally or socially responsible than they really are. The issue is now complicated because one, Shell's greenwashing strategies are now more accessible to the masses and have the potential to influence more people, Lego's environmental efforts are also called into question and because consumer choice may now have a more direct impact on the actions of oil companies. 

Considering the trend of greenwashing among mainstream companies, it is unlikely that this case study will be the last of its kind. While Cherry & Sneirson (2012) have suggested possible legal framework to regulate CSR in the oil industry and beyond, many depend on consumers to call out large corporations on their dirt. Partnerships between Lego and Shell may affect consumer mindset and undermine such efforts. As such, I feel more needs to be done to educate and inform consumers about the true impact of their purchases. While sometimes in itself controversial, environmental activist groups such as Greenpeace have made us question our true impact on the environment. I also agree with Cherry & Sneirson that more needs to be done with regard to certification of "green" products and companies. As for the law, I feel a more important focus lies in prosecuting companies for irresponsible activities in their operations.  

Let's end off with a video by Greenpeace regarding Lego's partnership with Shell:

If you would like to sign the petition to ask Lego to cut ties with Shell, click here! 


References: 
    Carveth, R. (2011). Communication, national and local. In K. Wehr (Ed.), Green culture: An A-to-Z guide. (pp. 174-183). Thousand Oaks, CA: SAGE Publications, Inc. doi: http://dx.doi.org.libproxy1.nus.edu.sg/10.4135/9781412975711.n27

   Cherry, M. A., & Sneirson, J. F. (2012). Chevron, Greenwashing, and the Myth of "Green Oil Companies". Journal of Energy, Climate, and the Environment, 3.

     Ramon, S. (2010, Oct 18). Chevron Launches New Global Advertising Campaign: 'We Agree'. Retrieved from http://www.chevron.com/chevron/pressreleases/article/10182010_chevronlaunchesnewglobaladvertisingcampaignweagree.news on 21 Sep, 2014. 

     Vaughan, A. (2014, July 1). Greenpeace urges Lego to end Shell partnership. The Huffington Post. Retrieved from http://www.theguardian.com/environment/2014/jul/01/greenpeace-lego-shell-partnership-toys-oil-arctic on 21 Sep, 2014.