Why is it in the news?

• The Indian government has introduced new guidelines to prevent companies from making false or misleading environmental claims about their products or services.
• Issued by the Central Consumer Protection Authority (CCPA) under the Consumer Affairs Ministry, the “Guidelines for Prevention and Regulation of Greenwashing or Misleading Environment Claims” require companies to provide scientific evidence for such claims.
• These guidelines complement the 2022 rules on misleading advertisements.

More about the news

• Greenwashing occurs when companies, organizations, or governments exaggerate or fabricate claims about their environmental impact. For instance, the 2015 Volkswagen emissions scandal is a notable example, with other corporations like Shell, BP, and Coca-Cola also accused of greenwashing.
• Governments have also been criticized for overstating carbon absorption capacities or exaggerating the effect of regulations on emissions. Even legitimate mechanisms, like carbon trading, can be scrutinized due to insufficient scientific rigor.
• In response to the growing problem, UN Secretary-General called for zero tolerance on greenwashing. A UN expert group recommended that companies aiming for net-zero targets avoid new fossil fuel investments, set short-term emission reduction goals, and stop deforestation.
• The CCPA guidelines define greenwashing as any deceptive practice that exaggerates or hides environmental claims, while allowing harmless advertising hyperbole if it does not mislead consumers.
• Terms like “eco-friendly,” “carbon neutral,” or “sustainable” can only be used with credible evidence, and technical terms must be explained clearly. Claims such as “compostable” or “non-toxic” require third-party certification or scientific validation.
• These guidelines apply to manufacturers, service providers, traders, and advertisers, ensuring that all environmental claims are backed by credible proof.