Michele Majidi
Researcher
Sustainability in advertising and marketing worldwide - statistics & facts
Brands everywhere appear to be “going green,” with many claiming to be on board but only a few reaching that destination. There is a growing requirement for companies to provide a more sustainable future, highlighting socially and environmentally responsible products, processes, and brand values. With consumers in key markets frequently checking the sustainability practices of brands before making a purchase, integrity is paramount.
Even enterprises that are acknowledged for their sustainable production processes are confronted by the test of making their marketing practices as eco-friendly as possible. In the United States, the Federal Trade Commission (FTC) oversees green advertising at a federal level. For the past three decades, it has filed lawsuits against companies that breach their sustainable marketing protocols. In 2022, the FTC sued Kohl’s and Walmart for falsely advertising rayon textile products as bamboo; as a result, both companies agreed to pay 5.5 million U.S. dollars in civil penalties. The other side of the Atlantic was also not devoid of companies being taken to court over greenwashing allegations. In 2023, a Dutch court determined that KLM had misled customers in a campaign detailing its efforts to reduce emissions. German car giant Volkswagen holds the dubious honor of being hit by the highest anti-greenwashing fine ever, with its 2015 “Dieselgate” scandal costing the company 35 billion dollars.
Companies riding green waves, navigating greenwashing claims
Sustainability was the fourth most-crucial topic dominating the agenda of European chief marketing officers (CMOs) in 2023. At the same time, the share of European marketers who increased their sustainability budgets to raise sales and embellish their brand image was more significant than those who did so because it was the right thing to do. Air travel was the most polluting advertising activity area in Europe, Australia, and North America in 2023, followed by road travel and accommodation. Consumers are increasingly questioning how seriously companies are taking sustainability, with accusations of greenwashing becoming more and more frequent.Even enterprises that are acknowledged for their sustainable production processes are confronted by the test of making their marketing practices as eco-friendly as possible. In the United States, the Federal Trade Commission (FTC) oversees green advertising at a federal level. For the past three decades, it has filed lawsuits against companies that breach their sustainable marketing protocols. In 2022, the FTC sued Kohl’s and Walmart for falsely advertising rayon textile products as bamboo; as a result, both companies agreed to pay 5.5 million U.S. dollars in civil penalties. The other side of the Atlantic was also not devoid of companies being taken to court over greenwashing allegations. In 2023, a Dutch court determined that KLM had misled customers in a campaign detailing its efforts to reduce emissions. German car giant Volkswagen holds the dubious honor of being hit by the highest anti-greenwashing fine ever, with its 2015 “Dieselgate” scandal costing the company 35 billion dollars.
