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Defeating Greenwashers: ECA Software and Carbon Accounting

Tuesday, November 2, 2010 1:20

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The following is a guest post from Hunter Richards, accounting market analyst with Software Advice. You can contact him at [email protected].

Greenwash (verb, \ˈgrēn-wȯsh\) – to market a product or service by promoting a deceptive or misleading perception of environmental responsibility.

Companies are increasingly launching ad campaigns for the latest green products. But many of their claims are misleading or downright false. So how can we know who’s telling the truth? “Greenwashing” is eroding the credibility of environmental marketing and turning would-be green consumers into skeptics.

The U.S. is a leader in financial accounting (with the help of sophisticated accounting software), but we need to develop similar infrastructure for new environmental accounting methods to prevent greenwashing. Enterprise Carbon Accounting (ECA) software is becoming the foundation of this infrastructure, enabling companies to track and report their carbon emissions. ECA software can also help identify opportunities for cost savings and waste reduction. Now greenwashers are running out of excuses to conceal their carbon footprint.

The ECA market is growing, but we need action in five main categories for environmental accounting adoption to finally defeat greenwashers:

Clear government regulations – like the EPA’s Mandatory Greenhouse Gas Reporting Rule, which requires companies that emit 25,000 metric tons or more of greenhouse gases annually to disclose their carbon emissions to the EPA;

Adoption of carbon accounting principles – more required disclosure of corporate emissions would provide a method for examining a company’s environmental record and disproving false ad campaigns;

Expansion of Scope 3 emissions accounting – mandatory inclusion of suppliers’ emissions (Scope 3) in environmental reports would prevent under-reporting of emissions and spread more adoption of carbon accounting throughout the supply chain.

Better green business incentives - using ECA software to identify new eco-friendly savings opportunities can make it cheaper to go green, making it unneccessary for businesses to greenwash in the first place.

Demanding, informed consumers – consumers who demand the numbers from standardized carbon accounting reports and boycott the liars force businesses with green marketing campaigns to prove their sincerity – after all, fully informed consumers make deception by greenwashing impossible.

To learn more about ECA software and greenwashing prevention, check out Software to Hold “Greenwashers” Accountable.

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