New guidance and potentially tougher government and legal responses are being introduced in the United Kingdom to curb “greenwashing,” or misinformation around sustainability and environmental efforts, in the hotel industry and other sectors.
The guidance published by the not-for-profit Energy & Environment Alliance titled "Legal Guidance for the Hospitality Sector on Environmental Advertising Claims" aims to avoid the “dissemination of misleading information by an organization to present an environmentally responsible public image,” said one of its authors, John Wilks, partner at law firm DLA Piper.
At a webinar titled “Greenwashing,” Wilks said the term was first used in reference to the hotel industry in 1986 when environmental activist Jay Westerveld said that a hotel chain’s request for towels to be used for more than one day was more the case of wishing to save money than doing the same for the planet.
The U.K. government’s anti-monopoly entity, the Competition & Markets Authority, might soon become stricter on the issue and target wrongdoers with fines and even imprisonment of up to two years.
Nick Beresford, the CMA’s legal director of consumer protection, said the key new principals are in line with existing U.K. legislation, notably the Consumer Protection from Unfair Trading Regulations 2008.
Claims must be truthful, accurate, clear and unambiguous, must not omit or hide important information, must consider the full life cycle of the product or service, and must be substantiated.
He said comparisons made in claims must be fair and meaningful, and he added in January the CMA will become more vigorous in its policing.
Wilks added the need for revised and stricter guidance and regulations stems from misleading and ambiguous environmental advertising claims being common, unethical and increasingly focused upon.
Businesses, including hotels, that are not fully transparent and truthful risk of brand damage and signification litigation, he added.
Hoteliers to the Fore
Hoteliers have taken notice, with many ahead of the game.
Hadrian Beltrametti-Walker, executive vice president and general counsel at Kempinski Hotels, who chairs the Swiss hotel company’s committee on sustainability compliance, said clear expectations are needed.
“The importance on brand reputation for a luxury company such as Kempinski is paramount," he said.
“We do not promote our sustainability very actively, but when we do, we do it with a lot of fact checking, which allows confidence when we communicate,” he said, adding Kempinski is aligned with Australia sustainability benchmark firm Earthcheck.
“The majority of our hotels are signed up with Earthcheck, and the goal is for the entire portfolio to do so,” he said.
He added that brand executives seek to have a balanced view of all aspects of environmental, social and governance strategy.
Robert Godwin, managing director of The Lamington Group, a founding member of the Energy & Environment Alliance and the owners of hotel brand Room2, said the entire real estate portfolio of the company, hotels included, is to be accredited as “whole-life net-zero” by 2030.
“Whole life,” he said, includes the properties' construction, operations, maintenance and demolition over an average building lifetime of 60 years.
He said the company's philosophy is to “structure work that aligns with environmental and consumer requirements” and pointed to its latest Room2 hotel in Chiswick, London, as being the firm’s pioneer hotel.
“A lot of people are very vocal about green issues, and quite rightly, so we need to show in detail what we are doing,” he said, adding that two years of modifications and enhancements to the Chiswick hotel have resulted in 89% more efficiency per square meter than an average hotel.
“The economics do stack on this, with long-term benefits … and our pipeline of 4,000 rooms will be built to these standards,” he said.
He said the firm has two full-time staff working on environmental issues, and he added that as far as he knew there is no independent accreditation for “whole life” as there is for “net-neutral.”
Beltrametti-Walker said there needs to be a commitment to regularly measuring environmental performance, and transparency and involvement from departmental heads and C-suite executives is vital.
“That gives us more comfort that what we do is the right thing to do, compliant and marketable,” he said.
Down the Garden Path
Ufi Ibrahim, CEO of the EEA and the webinar’s moderator, said misleading “green” claims are more common than thought.
Wilks said there is currently no specific regulation in the U.K. about greenwashing, but there are long-established laws on misleading consumers.
He said hotel marketing should avoid vague and complex terminology and be careful about using terms such as “green” and “eco-resort.”
“Ensure claims are self-explanatory or are clearly explained,” he said.
He added practical tips for getting this right include:
- Is a claim measurable?
- How practically can I evidence the claim?
- Can I gather and preserve the evidence and data and ensure it supports the claim?
- Can any claim survive independent testing and verification?
- Is the claim and any data robust, transparent, current, uncontroversial and available?
- Can I base evidence on real-world conditions?
He added scrutiny is being applied to more than just words.
“The use of logos and labels also can be problematic, such as the adoption of a naturally themed logo if the company and product does not offer real environmental benefits,” he said.
Beresford said there are “relatively simple propositions that lie behind those principles.”
He added that businesses will be incentivized to do what is right or run the risk of being vilified, and customers will reward those doing these things in the correct manner.
“The CMA involvement is likely to be long term,” he said, adding George Eustice, the U.K.’s secretary of state for environment, food and rural affairs, has charged the CMA to report on how “competition and consumer protection laws can better support net-zero and sustainability goals.”
“The stick is the carrot,” Ibrahim said.
Wilks said there is a danger that companies might claim they are sustainable in all aspects of operations, when what they mean is that they are environmentally sustainable.
“A level of organization is needed, as this is complex. Embed the right communication and management structures,” he said.
Beltrametti-Walker said that some online travel agencies have sustainability questionnaires for hotels wishing to be listed but that “ultimately it is us, the hotel provider, who has responsibility.”
“Will [online travel agencies] have fact-checkers? It is good that we have this type of engagement and truthful, transparent and credible sustainability, so the more the better,” he said.
Godwin said the goal is for the entire hotel industry to act with integrity.
“This train is not about to turn around,” he said.